Administrators have been appointed to oversee the sale of Tanfield Group’s loss-making engineering unit.
In the year ended December 31, 2012, Tanfield Engineering Systems Ltd suffered losses of approximately £732,000 and negative assets before group balances of around £367,000.
An update published by Washington-based aerial lift maker on the London Stock Exchange yesterday said: “No immediate buyers were identified and in order to preserve the group’s cash reserves to run the plc to advance the strategy of realising value from the company’s two principal investments in Snorkel and Smith Electric Vehicles, the company has appointed administrators for this business unit.
“The administrators are of the view the best outcome for creditors is served by trading the business for a period and seeking a buyer. The administrators are optimistic that they will be able to find a buyer and preserve as many jobs as possible. Henceforth, this unit does therefore form part of the group’s activities.”
In June, Tanfield announced it had closed the gap on its losses thanks to global demand for its platform products.
The manufacturer reduced its pre-tax losses to £14.4m for the year to December 31, from £16.3m this previous year, on sales of £45.1m, which were down 6.6% from £48.3m.
In September, it announced it was selling a stake in its Snorkel Division to the US-based Xtreme Manufacturing.
Yesterday’s update said: “The integration of the Snorkel business into the joint venture company has progressed very well and the board are satisfied that the process is on track.”