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Cash call aids Tanfield recovery

28 Sep 12 Tanfield, maker of Snorkel powered access equipment, is expecting to have its first break-even month in October since the recession began three years ago.

Continued recovery in global markets for aerial work platforms helped to reduce net losses at Tanfield Group to £7.0m for the six months to 30 June 2012, following an operating loss of £8.2m in the previous six-month period.

Turnover rose to £24.1m from £23.7m in the preceding six months.

CEO Darren Kell said: "We made steady progress from a low base during the first half of 2012, as global demand for aerial work platforms continued to recover.

Earlier this year Tanfield raised £11m, net, from a share issueto alleviate production bottlenecks and reduce lead times. Until this point turnover had been in decline. Only after this point did revenues start to grow.

Mr Kell added: "Since the injection of working capital in March, the business has witnessed monthly output improvements, with the major step-change impact from our supply chain investment occurring late in the third quarter after the end of the half year. Margins have improved, losses have narrowed, and the company predicts having its first post-recession break-even month in October. The outlook for 2013 looks positive, with the company remaining on track for full year profitability."

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