Snorkel

Snorkel's Parent Tanfield Aims to Reduce Lead Times

Tanfield, a leading manufacturer of aerial work platforms including the Snorkel brand, announces it has conditionally raised gross proceeds of approximately £12 million by way of a placing of 29,268,293 new ordinary shares of 5p each at a price of 41p per share. The company believes this will serve to reduce lead times for customers and generate purchasing efficiencies.

The placing by WH Ireland, as Nomad and broker to the Company, is for an aggregate of 29,268,293 new Ordinary Shares at a price of 41 pence per new Ordinary Share to institutional and other investors, comprising 9,407,720 shares to be issued under existing authorities and 19,860,573 further shares, the
issue of which is conditional on the passing of the Resolution.

Highlights

  • Aerial Work Platform market demand recovering – driven by replacement requirements
  • During the first half of 2011, the Company’s turnover rose 25% to £24.6 million while the outstanding order book rose 170% to £20.9 million
  • Ability to meet orders currently restricted by working capital constraints and supply chain bottlenecks
  • Funds raised from Placing expected to alleviate bottlenecks and accelerate the expected return to profitability

“The additional working capital raised by this Placing will help to alleviate the bottlenecks within our supply chain, allowing us to increase throughput, reduce lead times for customers and generate purchasing efficiencies," commented Darren Kell, chief executive of Tanfield. "As a result, we believe it should accelerate our return to profitability and help to cement our position as one of the leading global manufacturers in the aerial work platform industry.”

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