22.04.2008

Tanfield access up 700%

Tanfield owner of Snorkel and UpRight has reported preliminary full year 2007 access revenues of £90 million ($178 m) compared to £11 million ($22 m) in 2006, an increase of over 700 percent.

Group revenues for 2007, which includes the SEV electric vehicles business, more than doubled to £123 million ($244 million) while pre tax profits jumped 235 percent to £12.4 million ($24.5 m)

Tanfield has also reported a strong first quarter for 2008 with access sales of £43 million ($85m) and an order book at the end of the quarter of over £101 million ($200 m), up from £83 million at year’s end 2007.

Total worldwide production of UpRight and Snorkel machines has now reach 320 units a week according to the company.

Snorkel achieved its strongest start to the year for a decade, with sales of £21m ($42 million) in the first three months, with exports at record levels.

The company also says that it has made a significant inroad into one of America’s largest rental companies (United Rentals?) with an initial order of over $50 million, having achieved preferred vendor status with “this customer”.

Plans are now also underway to increase production at Snorkel’s Kansas facilities by 60 percent, given that the first six months of its 2008 capacity is already sold out according to Tanfield.

In its preliminary statement Tanfield announced an OEM agreement to provide access and telehandler manufacturer, Manitou with “certain key products from its (UpRight) range”. Manitou will sell the "products" under its Maniaccess brand through its distributor network.

Vertikal Comment

The full year numbers for UpRight and Snorkel are no surprise and reflect the strong growth in the access market that Tanfield has managed to maintain since it purchased UpRight in mid 2006.

The level of the increase is of course as indicative of the two acquisitions than organic growth, although this has also been very strong during the year, particularly at UpRight as it has expanded its UK production facility.

The first quarter revenue trends suggest that the company stands a good chance of exceeding revenues of £200 million ($400m) in 2008.

At this stage details on the Manitou deal are still sketchy, but are likley to include the 4.3 metre TM12 which would sell well through Manitou’s industrial network and the Speed Level, a product that Manitou has coveted since it was launched in 1990 and that might go well alongside its T15 telescopic scissor type lift.

The strong first quarter growth, half of which is of course down to the addition of Snorkel, contrasts sharply with the numbers posted by Haulotte earlier today, confirming our initial perception that Haulotte’s numbers are more a reflection of particular one-off circumstances than a sharp downward shift in the Aerial lift market.

Time will tell