Tanfield losses rise but group positive about future investments

21st Aug 2014 11:14

Electric vehicle investor Tanfield Group stayed upbeat about prospects for its businesses despite a rise in first half pre-tax losses.Tanfield said Snorkel International Holdings was doing well and Smith Electric Vehicles was raising up to $20m ahead of a planned merger with US firm American Business Services (ABS) and a US flotation.Pre-tax losses for the six months to 30 June sparked up from £60,000 to £260,000 year-on-year and revenue fell to nil from £1.3m.Tanfield owns 49% of Snorkel, worth £36.28m or 25.6p per share, while the group's 24% holding in Smith is now valued at £1.28m equity and £2.78m debt.Snorkel's annualised run-rate of sales exceeds $100m while $30m of working capital was injected into the business.Smith has completed the acquisition of ABS, in which it now has a 85% stake.Once the funding round is completed, Smith intends to complete the merger with ABS, to become a publicly traded company on the Over The Counter Bulletin Board (OTCBB) and will apply to be listed on NYSE or NASDAQ.As a result of the merger, Tanfield anticipates it could have tradeable NYSE- or NASDAQ-listed stock in ABS after a 180-day lock-in expires from the date that Smith becomes a publicly traded company on the OTCBB.Given the potential realisation of the investment in Smith, Tanfield has chosen not to pursue an open offer to shareholders as it had previously indicated in June.Tanfield shares were unchanged at 17.25p at 11:14 on Thursday. DC