24th Aug 2020 11:42
(Alliance News) - Tanfield Group PLC on Monday said its loss widened in the first half of 2020 as the performance of its portfolio company was hurt by coronavirus pandemic.
The investment company reported a pretax loss of GBP369,000 for the six months to the end of June compared to GBP127,000 a year earlier. Tanfield did not generate any revenue in either year.
Tanfield is a 49% shareholder in Snorkel International Holdings LLC, following the joint venture with Xtreme Manufacturing LLC, a company owned by Don Ahern of Ahern Rentals Inc, relating to Snorkel.
The Snorkel investment is valued at GBP19.1 million, Tanfield said.
In October 2019, Tanfield announced that it had received a summons & complaint, filed in Nevada by subsidiaries of Xtreme, relating to the join venture transaction.
Thus, Tanfield said had become necessary to issue and serve a claim in the English High Court against Ward Hadaway, the solicitor acting for the company at the time of the completion of the joint venture transaction, in order to fully protect its rights pending the outcome of the US proceedings.
Turning to operations, Tanfield said Snorkel has been significantly impacted by the global Covid-19 pandemic and many of its manufacturing locations have been closed in order to protect both the workforce as well as other stakeholders and to comply globally with a number of stay at home orders.
Going forward, Tanfield said, due to the Covid-19 pandemic, it expects that the remainder of 2020 will likely see reductions in sales at Snorkel when compared to 2019.
AIM-listed Tanfield shares were untraded in London on Monday, last closing at 3.94 pence each.
By Evelina Grecenko; [email protected]
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