21st Aug 2014 09:10
LONDON (Alliance News) - Investing company Tanfield Group PLC said its losses widened in the first half, due to net finance expenses.
The company, which has two passive investments Smith Electric Vehicles and Snorkel Europe Ltd, posted a pretax loss of GBP261,000 for the six months ended June 30, compared with a GBP60,000 loss a year earlier, after reporting net finance expenses of GBP132,000, compared to net finance income of GBP22,000 in the year-prior half.
Tanfield recorded no revenue during the period compared with GBP1.3 million a year earlier.
Last month, Tanfield said Smith Electric Vehicles bought an 85.3% stake in American Business Services Inc for USD340,000, the first step in the process of Smith becoming a publicly listed company on the Over The Counter Bulletin Board in the US.
Smith Electric Vehicles manufactures and markets zero-emission commercial electric vehicles.
In late May, Tanfield decided to support Smith Electric Vehicles' capital restructuring and listing plans, even though the deal will dilute its shareholding. It signed a deal which conditionally bound it to sign consents to allow Smith to raise up to USD30 million in funding and to restructure its capital.
Tanfield said its Snorkel business, in which it has a 49% stake, also continues to progress well, with both production and the order book up.
Snorkel, a manufacturer of self-propelled aerial work platforms, has undertaken a restructure to reduce the breakeven of the business. As a result, Tanfield said it is confident that the Snorkel business will continue to move towards "meaningful profitability".
Tanfield shares were quoted down 1.1% at 17.06 pence Thursday morning.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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