In a statement this morning Tanfield said: “The company has received a number of approaches from credible parties, who have expressed interest in making a strategic acquisition of our global aerial work platform business division in order to enter this recovering market. The board is considering these approaches and will provide an update in due course.”
Tanfield has struggled to make a profit in this business, having acquired Upright in 2006 and Snorkel iin 2007, right at the top of the market and just before the biggest global downturn the industry had ever seen. After scaling back heavily, it then struggled to meet delivery times once orders began to pick up again. A share issue last year enabled it to step up production to start meeting rising global demand. In October 2012 it had its first break-even month since 2008.
Overall revenues and operating losses for the second half were in line with those in the first half.
However, Tanfield says that it is now in a strong position for the forthcoming buying season and will be able to meet orders.
The company said: “The end markets continue to recover on the back of replacement demand and the company has received significant order forecasts from key customers, supporting a positive outlook for 2013 and the board's confidence in the ability in 2013, subject to continued favourable market conditions, to achieve its first full year profit since 2007. “
Net cash at the end of June 2012 was £2.7m and at the end of December 2012 was £2.2m. In addition, the company has agreed a debt facility to help fund working capital growth.
Tanfield is one of only four aerial lift manufacturers that have a truly global presence with production facilities in the UK, North America, New Zealand and a joint venture in China. Through the Pop-Up brand, Tanfield is a market leader in low-level access.
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