Tight rein will lead Tanfield to recovery, shares up 50%

The Tanfield Group, which includes UpRight Powered Access and Snorkel, reported that, despite poor market conditions in the second half of 2008, "We were still able to grow the Group year-on-year with revenues of £146.5 million."

In a statement the company said "cost cutting measures" have restored the company to a break-even position on a monthly basis and cash balances at the end of January 2009 were £13.1 million.

Tanfield says that downsizing the business swiftly and decisively has left the company less exposed to the difficult trading conditions which will continue through 2009. "Because of this prompt action, we can maintain the business at a much lower break-even level than historically was the case.

With a lack of available credit for customers, sales in 2009 are expected to be lower than those in 2008 but, in common with its peers, Tanfield cannot predict how the year will unravel.

Particularly challenging market conditions in the USA have led to temporary production suspensions in North America, on an as-needed basis. Customer service, a priority for the company, continues as normal.

Downsizing already implemented in Europe is being closely monitored and reviewed.

These measures have ensured the Tanfield Group is "debt free without banking covenants or interest costs and we do not anticipate this changing in the short to mid-term. The Group is, therefore well positioned to continue to ride out this downturn until eventual market recovery."

Tanfield shares rise 50%

The Tanfield Group's share price has shot up around 50% today (9 Feb) following the announcement that the company will produce Ford's first battery-electric vehicle for North America.

Ford is collaborating with Smith Electric Vehicles part of the Tanfield Group ─ to bring this vehicle to market in North America. In the UK and some European markets, Smith already offers battery electric versions of the Ford Transit medium commercial vehicle to fleet customers.

The Ford has also announced its plans to market a pure battery electric-powered light commercial vehicle in North America, based on the new Transit Connect global commercial vehicle platform.

Derrick Kuzak, Ford’s group vice president of global product development said, “The new Transit Connect light commercial vehicle with battery electric power represents the next logical step in our pursuit of even greater fuel economy and sustainability.

“A growing number of our commercial vehicle fleet clients have expressed interest in electrification as a sustainable mobility solution. By leveraging our global team and asset portfolio, we’re able to quickly bring this environmentally friendly, strong ‘silent type’ to market.”