Tanfield to raise £12 million through share issue
By Maria Hadlow14 February 2012
Tanfield Group Plc, owner of Snorkel, is to raise £12 million after placing 29.2 million new shares on the stock market.
Some 9.4 million shares were issued under existing authorities to institutional and other investors, while a further 19.9 million shares are conditional on shareholder approval. The ordinary shares of 5p each were sold at a price of 41p per share
Darren Kell, chief executive of Tanfield said, "The additional working capital raised by this placing will help to alleviate the bottlenecks within our supply chain allowing us to increase throughput, reduce lead times for customers and generate purchasing efficiencies.
"As a result, we believe it should accelerate our return to profitability and help to cement our position as one of the leading global manufacturers in the aerial work platform industry."
Today (14 February 2012) Tanfield also announced that its US associated company, Smith Electric Vehicles Corp had filed a Form D with the US Securities and Exchange Commission announcing a private placing of up to US$40 million of new preferred stock and warrants.
If the placing is fully completed Tanfield will hold 5.25 million ordinary shares in Smith, representing approximately 24% of its enlarged ordinary share capital. (Tanfield held 27.22% on the same dilution basis prior to this placing.)
The net proceeds of the placing will be used to fund Smith's ongoing working capital and development requirements.
In a recent statement Tanfield said that trading for the second half of 2011 was similar to that of the first half. The company's order book continued to grow as order intake significantly outstripped monthly shipment revenues. Net cash at 31 December 2011 was £3.4 million (31 December 2010: £3.6m).
During the first half of 2011, the Company's turnover rose 25% to £24.6 million while the outstanding order book rose 170% to £20.9 million
Mr Kell said, "Global demand for aerial work platforms continues to build, driven by fleet replacement at major rental operators. The company is examining ways that will allow it to respond to that increased global demand and to reduce its lead times accordingly."
Tanfield will announce it full year end results for the financial year ending 31 December 2011 in April 2012.