The Tanfield Group Plc

 ("Tanfield", "Group", or "the Company")

 Interim Results for the six-month period to 30 June 2013

The Tanfield Group Plc, a leading manufacturer of aerial work platforms, announces its unaudited interim results for the six-month period ended 30 June 2013.

·     Continued recovery of global aerial lift market

·     Working Capital constraint limited revenues

·     Initiated Snorkel Disposal process

·     Cash conservation during M&A process

·     Turnover declined to £18.9m (H2 2012: £21m)

·     Improved margins and controlled overhead cost base

·     Net losses £8.4m (H2 2012: Operating loss: £8.2m)

Darren Kell, CEO of Tanfield, said:  "The Board are strongly recommending the recently announced proposed disposal of the Powered Access division, which de-risks the Tanfield Group, protecting the value inherent within the Snorkel business as well as the holding in Smith Electric Vehicle Corp . We believe the transaction will ultimately, significantly enhance the value of the Snorkel business and deliver far greater shareholder value in the medium term."

Further information:

Snorkel

Whilst demand increased, the Company was further constrained by the lack of working capital such that it could not benefit from the market recovery. As stated in previous financial statements the Company required the introduction of additional working capital to be able to return to sustained profitability. 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.  Following consultation with its major shareholders the Board initiated the disposal process of the Snorkel division and appointed an M&A advisor accordingly. Throughout the period the business was being managed to conserve cash through the M&A process and this further limited the opportunity.  

Smith Electric Vehicles

Smith Electric Vehicles Corporation, in which Tanfield holds 25%, continues to extend its bridge financing as it follows its ultimate strategy of seeking a listing on a public market.

Dividends

The Board has not declared a dividend for the period.

 Outlook

The Board are strongly recommending the proposed disposal of the Powered Access divison, which de-risks the Tanfield Group, protecting the value for shareholders inherent within the Snorkel business as well as the value of the holding in in the Smith Electric Vehicle Corp Investment. Furthermore we belive  the transaction will ultimately, significantly enhance the value of the Snorkel business and deliver far greater shareholder value in the medium term.

Global market opportunities for Snorkel remain strong driven by the on-going recovery in the equipment sector. Snorkel's product range, brand and reputation continue to generate strong demand in the market and to date the limited working capital within the business has been the only constraining factor. The Board are extremely encouraged therefore by the significant market opportunity presented by the proposed transaction addressing as it does the working capital issue plus bringing to bear a number of very important synergistic and strategic benefits. The proposed transaction should return Snorkel to its previous trajectory and allow the business to deliver upon its full potential as one of the leading global manufacturers.