30th Sep 2013 12:36
LONDON (Alliance News) - The Tanfield Group PLC, a crane platform manufacturing company, urged shareholders to approve the disposal of its Powered Access Division after it posted nearly halved revenues and widened pretax losses.
For the half year ended June 30 the company posted revenues of GBP12.9 million, down from GBP24.1 million in the previous year. The company had pretax losses of GBP8.5 million, widened from GBP7.0 million.
Chief Executive Officer Darren Kell said that the board of Tanfield strongly recommended the disposal of its Powered Access Division that was recently announced as it de-risks the company and protects the value of its other businesses. "We believe this transaction will ultimately, significantly enhance the value of the snorkel business and deliver far greater shareholder value in the medium term," Kell said in a statement.
The company's Snorkel business was constrained by a lack of working capital, Tanfield said, despite increasing demand. Recovery in the equipment sector meant that global market opportunities for Snorkel remain strong, the company said, however it requires investment to produce growth.
Shares in Tanfield were trading down 2.2% at 19.08 pence Monday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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