Turnover up 25% for Tanfield but operating losses persist
By Maria Hadlow29 September 2011
Tanfield Group, the parent company of Snorkel, has announced interim half year results (to 30 June): turnover has increased 25% to £24.6 million compared to the same period last year, but operating losses persist at £7 million albeit at a reduced rate to 2010 (£7.7 million H1 and 8.1 million H2).
Net cash has increased from £3.6 million on 31 December 2010 to £4.7 million 30 June 2011. The order book has increased from a value of £7.7 million to £20.9 million over the same period.
Darren Kell chief executive officer of Tanfield said, ""Global demand for aerial work platforms is returning, driven by major fleet operators replacing ageing equipment. However, this has created bottlenecks as the supply chain struggles to restore the capacity it lost during the protracted downturn.
"Our order book rose 170% over the first half of the year and has improved further since the half year end. We are working hard to resolve the supply chain issues so that we can bring orders through to sales at a faster rate and take the business back to profitability."
Tanfield employs just over 220 people in North-East England, which is fairly static compared to headcount in the last period to 31 Dec 2010. Another 100 workers in the region are employed by Smith Electric Vehicles, in which Tanfield retains a 32% stake.