Aerial lift maker Tanfield Group has made significant strides forward in plans to sell one of its divisions, as announced at the end last month.
A update from the Washington-based company, posted on the London Stock Exchange yesterday, said: “The board is pleased to report that sufficient progress has been made on the structure and broad terms of an acceptable proposal for the sale of its powered access division, to grant the preferred potential purchaser a short period of exclusivity in which to complete its due diligence with a view to mutually form a contract that will be executable subject only to shareholder approval.”
The news comes shortly after Tanfield published encouraging results for the year ending December 31, 2012.
During that time, the group reduced its pre-tax losses to £14.4m, from £16.3m the previous year, on sales of £45.1m, which were down 6.6% from £48.3m.
The firm also increased its headcount from 469 to 506 over the 12-month period, as it benefited from increased demand for powered access products, and equipment rental and plant hire companies revitalising their ageing fleets of aerial work platforms.
However, supply chain constraints put additional strain on working capital, forcing it to rein in production during the final quarter.