01.11.2018

Positive trend continues at Snorkel

Snorkel has achieved another very positive quarter in terms of revenue growth, coupled with improved profitability.

The numbers are revealed in a statement from Tanfield, which still owns 49 percent of the company’s equity. Looking at the nine months to the end of September, revenues were 23 percent higher than for the same period last year at $152.7 million, while operating profit excluding depreciation improved 12.5 percent to $2.9 million, held back by slightly lower margins and substantially higher Sales, General & Administration costs.

Moving on to the third quarter, revenues increased 27 percent to $56.4 million while operating profit almost doubled to $2.1 million, thanks to the higher sales volumes.

Tanfield is disputing, or raising questions about, the accounts in the belief that Snorkel owner Don Ahern has been running the Snorkel business in a way that will allow it to exercise its call option to acquire Tanfield’s equity for little to no money.

Vertikal Comment

Based on current trends it looks as though Snorkel will exceed annual revenues of more than $200 million for the first time since well before Tanfield acquired both UpRight and Snorkel in 2006 and 2007. At one time both companies had revenues in excess of $200 million.

It will be a great surprise to anyone who knows Don Ahern, if he agrees to pay Tanfield anything but a token gesture. And few, if anyone, who has followed the Tanfield mess over the past 10 years or worked for Snorkel or UpRight during the Tanfield days, believe that anything is due or justified.

Without Ahern’s intervention, Tanfield would have shortly expired as it used up investors remaining cash while its remaining operating business were declared insolvent.

Interesting times.