Tuesday, Tanfield Group PLC (TAN.L), a manufacturer of aerial work platforms and commercial electric vehicles, reported a loss for the six-month period, hurt by impairment charges. However, on a per share basis, earnings rose from last year. In addition, revenues more than doubled for the period.
Tanfield posted six-month loss before taxation of GBP 65.26 million, compared with a profit of GBP 5.35 million in the same period last year.
Net loss from continuing operations totaled GBP 68.07 million in comparison with a net profit of GBP 3.85 million in the prior-year period. Earnings per share before exceptional items were 1.88 pence, up from 1.26 pence in the year-ago period.
Profit from operations advanced to GBP 10.28 million from GBP 5.26 million in the prior-year period.
However, for the first-half period, revenue increased to GBP 92.78 million from GBP 36.82 million in the comparable period last year.
The company said impairments totaled GBP 75 million, of which GBP 48 million was from the impairment of Powered Access Goodwill and other intangible assets. It further said these adjustments are non-cash items and result in loss after impairments of GBP 65 million.
By segment, revenue for Powered Access Platforms averaged GBP 72.90 million, up from GBP 19.12 million in the corresponding period last year. Revenue for Zero Emmission Vehicles rose to GBP 15.60 million from GBP 13.08 million in the year-earlier period. Revenue from other segments was GBP 4.28 million, compared to GBP 4.61 million in the year-ago period.
Additionally, Tanfield said that the whole global organisation has been restructured to remove approximately 30% of its labour cost, which would provide an annual cost saving in excess of GBP 6 million.
The company also stated that it has decided to withdraw from manufacturing the Norquip product range of airport equipment, due to the overhead attached to the business was not justified in relation to foreseeable market conditions. However, the company would continue to provide spare parts and product support to all its existing Norquip customers.
In order to generate further cash, Tanfield is reducing finished goods stock levels and building new machines, wherever possible, from existing inventory.
In addition, Tanfield announced the appointment of Geoff Allison as Managing Director for the Electric Vehicle division, who was formerly a Plant Manager at the Vigo Centre facility. Geoff would be joining the Board on the 1st November 2008. The company said that this appointment would allow for a more divisionalised structure within the Group.
Looking ahead, the company noted that it would be seeking to appoint another non-executive director over the next few months.
TAN.L is currently trading on London stock exchange at 7.89, up 36.03%.
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