Tanfield revealed in February that it was putting Snorkel on the block.
The company – based in Washington, Tyne & Wear – is trying to act with appropriate speed so as not to impact on the operations of the business, as lack of working capital available to Snorkel is limiting its operations.
In a statement released yesterday, Tanfield said: “We continue to be supported by our M&A advisor, and the timescale is being managed in the most practicable manner.
As noted in the 2012 financial statements issued on 28 June 2013, the company requires the introduction of additional working capital to be able to return to sustained profitability. Therefore, the business is currently being managed to conserve cash through the M&A process. Given that growth requires investment of cash into working capital, the group has therefore not been able to fully respond to the opportunities in the market.
"However, those opportunities remain strong driven by the ongoing recovery in the sector. Snorkel's product range, brand and reputation continue to generate strong demand in the market and the board believes this to be of major importance to the engaged potential buyers.”
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