22nd Apr 2016 08:43
LONDON (Alliance News) - Tanfield Group PLC on Friday said its investee company Snorkel International Holdings is making progress in 2016, but warned that market conditions remain tough.
The investment firm said Snorkel, which is an aerial work platform business, should see modest growth in 2016, but it will be at a lower rate than in 2015. Tanfield also noted that there is sentiment in the wider aerial work platform sector that a lower level of expansion is expected for 2016, although this should be corrected in 2017.
Tanfield added that Snorkel intends to focus on improving profit margin in 2016 through further procurement synergies and standardisation across the product range, as well as efficiency improvements.
Tanfield owns a 49% stake in Snorkel, having sold the other 51% in 2013.
"The board is of the opinion that as progress continues to be made, albeit in a very competitive environment, and if the business is successful in achieving improved profit margins, it should be well placed to benefit from further expansion in the AWP market in 2017 and beyond. The board therefore still retains its view that the investment in Snorkel will result in a return to shareholders in the future," Tanfield said in a statement.
Shares in Tanfield were trading up 6.8% at 14.55 pence on Friday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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