27th Jan 2006 07:01
Tanfield Group PLC27 January 2006 Tanfield Group PLC ("Tanfield" or "the Group") Trading update The Directors of Tanfield are pleased to report on developments in the latterpart of the financial year ending 31 December 2005 and confirm that they remaincomfortable with market estimates for the year just completed. Significant highlights of this period include: Tanfield Engineering Systems The order book and enquiry levels remain strong with the "assembly solution"proposition continuing to derive interest from both existing and new clients. Further new projects have recently been awarded to the engineering divisionfrom a major manufacturer of civil engineering and construction equipment, andthe scope of a number of contracts is broadening as the Group demonstrates itscapability to these customers. Smith Electric Vehicles Interest in the Faraday vehicles is extremely buoyant with many substantialretail and logistics companies, as well as various public sector organisations,expressing serious intent. Firm orders have already been received from dairies,logistics companies, public sector organisations, and an Airport operator and anumber of trials are currently taking place. Further derivatives of the Faradayplatform will be rolled out over the course of 2006 to appeal to specificsectors within these markets. The Dairy Crest service and supply contract is now fully implemented and we seefurther opportunities to grow with Dairy Crest over the coming years. Aerial Access The strategy to broaden market penetration through overseas distributors is wellprogressed and a significant level of order intake is being generated throughthese new channels. Negotiations are ongoing with a number of additionaldistributors and we anticipate further additions to the distributor base overthe course of the year. New powered access products are in the final stages ofdevelopment to push through these improved distribution channels and to increasethe product portfolio. The proposed joint venture in China is progressing welland we expect shortly to be shipping the first of a number of products to thisimportant and fast growing market. Norquip The integration of this acquisition is now complete and we are in receipt oforders for complete vehicles, both diesel and electrically propelled, forairport customers worldwide. The renewed sales and marketing activities in thisdivision have resulted in significant interest. Several European and MiddleEastern projects are in the final stages of negotiation and are expected tocomplete in the short term. The directors are confident that these contracts,allied to the general growth in the airline sector, will result in significantorder book growth during the year. JumboTug Improved distribution and new state-of-the art products are helping thisdivision to significantly increase it's market share. Recent contract wins withseveral UK regional airports have been joined by orders from Poland and Spain.The divisions zero-emission products are now on trial in London's main airportsand the enquiry levels are at an unprecedented level, including potentialprojects in North America, the Middle East and Asia. We also announce the resignation of John Pither from the board of Tanfield as heis reducing his commitments. John's contribution and advice over the last 5years have been of enormous assistance and the board would like to publiclyexpress their thanks to him. The Company expects to make certain appointments tostrengthen the Board in due course. John Bridge has been appointed chairman of the remuneration committee and Martin Groak has been appointed chairman of the audit committee. The Company announces that its Auditors have completed a review of its InterimStatement to June 2005. They recommend that due to the size of a provisionrelease disclosed in Note 7 within the Report, this should be treated as anexceptional item. The Board and the Audit Committee will consider this guidancefor the treatment of this item when preparing the Annual Report to December2005. The Board can confirm that Note 7 of the Interim Statement gave full details ofprovision movements for the period. In addition, the board has appointed Baker Tilly as it's auditor and they willbe reporting on the year ended 31 December 2005. Enquiries: Roy Stanley, Chief Executive,Tanfield Group Plc Tel. 01207 521111 Ruari McGirr,Daniel Stewart & Company Plc Tel. 020 7776 6550 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Tanfield