Business
Placing and Notice of EGM
Placing and Notice of EGM.
About this update from Tanfield Group Plc
[{"type":"text","content":"\n Tanfield Group PLC\n23 October 2006\n\n\n Tanfield Group plc\n\n ('Tanfield' or 'the Company')\n\n Placing/Notice of EGM\n\n\nTanfield Group PLC ('Tanfield' or the 'Company') has conditionally placed up to\n£20m (before expenses) through an institutional placing of new ordinary shares\nat 40p per share by Daniel Stewart & Co, the Company's nominated adviser and\nbroker. These shares will rank pari passu with the existing ordinary shares.\n\nThe Company has convened an Extraordinary General Meeting for 15 November 2006\nat which shareholders will be asked to give the Directors authority to allot up\nto 50,000,000 new Ordinary Shares in the Placing. Admission is expected on 16\nNovember 2006.\n\nThe Directors will utilise the net proceeds of the Placing as working capital.\nThis will accelerate the growth in output of Tanfield's Powered Access Division,\nbringing it in line with the exceptional growth in order intake. In addition,\nthe Company is in advanced negotiations with its bankers with a view to\nextending the debt facilities available to it by approximately £5 million to\napproximately £9m..\n\nThe order book for Powered Access continues to exceed expectations, with order\nintake consistently hitting £1m or more, every week for the past six weeks. This\nis well ahead of current analyst projections for 2007, which forecast average\noutput of £500,000 per week for the Powered Access Division.\n\nThe Directors believe that recent commercial developments and the fund raising\nsignificantly enhance growth prospects for the Group.\n\nThe majority of the working capital will be invested in the supply chain, which\nwill allow Tanfield to capitalise on sourcing components from low cost\ncountries. Working capital will also support an expansion of the Company's\nglobal network of independent distributors; grow the machine spare parts\nbusiness; and expand the UpRight model range.\n\nProjected turnover from the Powered Access Division for 2006 is expected to be\nunaffected by these developments.\n\nA circular explaining that the Directors consider that the Placing is in the\nbest interests of shareholders as a whole and recommending that they vote in\nfavour of the special resolution to be proposed at the Extraordinary General\nMeeting, is being posted to shareholders today.\n\nEnquiries:\n\nTanfield Group plc\nRoy Stanle...