Investment vehicle Tanfield Group is upbeat about its stake in aerial work platform manufacturer Snorkel, saying the firm’s order book is increasing and is moving towards profitability.
In a note to shareholders Tanfield said it was confident that more than $30m of new working capital in Snorkel and significant restructuring of the firm had moved the business further towards “meaningful profitability”.
Tanfield, which holds stakes in Snorkel and Smith Electric Vehicle, said its own pretax losses had widened to £261,000 in the six months to the end of June.
Losses had increased from £60,000 in the same six month period last year.
During the period Smith Electric Vehicles completed the acquisition of Colorado-based consultancy firm American Business Services, Inc (ABSR), an OTCBB company, by acquiring 85% of the common stock of ABSR.
Smith is in the process of completing its Series E funding round, expected to raise up to $20 million.
On the closing of this funding round Smith then intends to complete the merger with ABSR and become a publicly traded company on the OTCBB.
Smith then intends to apply for a Listing on NYSE or NASDAQ, and expects to have tradable NYSE or NASDAQ listed stock in ABSR after 180 day lock in expires from the date that Smith becomes a publicly traded company on the OTCBB.
The value of Tanfield’s 24% stake in Smith Electric Vehicles is currently valued £1.28 million ($2.11 million) equity and £2.78 million ($4.75 million) debt; while its 49% stake in Snorkel is valued at £36.28 million ($60.1 million).
Tanfield Group’s total assets increased from £32.4m to £40.7m.<p/>