27.07.2015

Tanfield losses continue

Tanfield, the previous owner of Snorkel aerial work platforms which retains 49 percent of the manufacturer’s equity, continues to consume cash.

The company, which is now a very simple investment company with two holdings - the stake in Snorkel along with a small stake in Smith Electric vehicles – has issued its half year results which show zero revenue, but staff costs of £90,000, operating expenses of £100,000 and £34,000 of finance costs. On the positive side £15,000 of other operating income is reported.

The net result is a pre-tax loss of £209,000 for the six months. This is better than last year’s loss of £261,000 thanks to a substantially lower finance cost.
The company is valuing its stake in Snorkel £38.5 million – based on $60.1 million – and its holding in Smiths at £6.9 million.

Vertikal Comment

One has to wonder how a company holding a few shares in two or three companies can rack up staff costs of £90,000 in six months, let alone £100,000 of expenses. Especially when it is entirely possible that it will never receive a penny for either of its main investments.

A cynical person might think that this is a case of using up any spare cash in the company.