Tanfield, Parent of Access Equipment OEM Snorkel, Reports Break-Even Revenue in October 2012 | Daily Construction News

Tanfield Group Plc, parent of powered access manufacturer Snorkel, Elwood, Kan., reported revenues in the third quarter grew month on month, and the company reached break-even revenue levels in October 2012—the first month since 2008.

 

Additionally, Tanfield said it has been approached by “credible parties” that have expressed an interest in acquiring its access platform business division. The board is considering these offers; any disposal of this business would be subject to shareholder approval. The company said there is no certainty that any negotiations will result in an agreement to dispose of this business.

 

Financial updates

Given the need to restock Australia and Japan, the lower end of year shipments, and the focus on inventory management to minimize working capital, the company took steps during the fourth quarter to respond to the improving opportunities in 2013. Overall revenues and operating losses for the second half were in line with those in the first half.

 

According to company reports, the resulting planned inventory profile has put the company into a strong position to respond to the 2013 buying season that is expected to  commence in the second quarter.

 

End markets continue to recover due to fleet replacements, and Tanfield has received significant order forecasts from key customers, supporting a positive outlook for 2013 and the board's confidence in the ability in 2013, subject to continued favorable market conditions, to achieve its first full-year profit since 2007.

 

Net cash at the end of June 2012 was £2.7 million ($4.1 million) and at the end of December 2012 was £2.2 million ($3.34 million). In addition, the company has agreed a debt facility to help fund working capital growth.