Business
Half-year Report
Half-year Report.
About this update from Tanfield Group Plc
[{"type":"text","content":"\n \nRNS Number : 9786P Tanfield Group PLC 06 September 2017 \n\nTanfield Group Plc\n \n(\"Tanfield\", or \"the Company\")\n \nInterim Results for the six-month period to 30 June 2017\n \nTanfield, an investing company as defined by AIM Rules, announces its half year results for the period ending 30 June 2017. The unaudited financial information will shortly be available on the Company website at www.tanfieldgroup.com.\n \nBackground\n \nThe Company is currently defined as an investing company that has two passive investments. This status resulted from the disposal of Smith Electric Vehicles in 2010 and the disposal of Snorkel Europe Limited in October 2013. Tanfield currently owns 49% of Snorkel International Holdings LLC (\"Snorkel\") and 5.76% of Smith Electric Vehicles Corp. (\"Smith\"). \n \nThe strategy of the Company in relation to these investments is to return as much as possible of any realised value to shareholders as events occur and circumstances allow, subject to compliance with any legal requirements associated with such distributions.\n \nSummary\n· Further sales growth achieved by Snorkel in the first six months of the year, up 13% compared to H1 2016 and profitable for the period.\n· Snorkel carrying value is £36.3m which represents approximately 23p per share.\n· Smith continues to be held at a nil balance sheet value following the impairment of the investment at the end of 2015. \n \nOverview of investments\n \nBased on the unauditied financial information received from Snorkel, during the first six months of 2017 the business achieved sales of $79.7m, an increase of 13% compared to the same period in 2016, with an operating profit, excluding depreciation, of $1.5m (H1 2016: $1.4m loss). Should the trend of sales growth continue for the remainder of the year, the Board believes 2017 could be a profitable year for the Snorkel business and is of the opinion that the investment in Snorkel will result in a return to shareholders in the future. However, at the current rate of growth it is not expected to materialise until after 30 September 2018, when the outcome becomes uncertain and the return to shareholders could therefore be greater or less than the current ca...