Tanfield narrows losses but flags cash constraints

28th Jun 2013 09:05

Tanfield Group reported smaller full-year losses but said it had reined in production in its final quarter to protect cash and it required additional working capital.Shares in the aerial lift manufacturer had fallen 3.58% to 22.9p by 09:58 on Friday..The aerial lift manufacturer reported pre-tax losses narrowed to £14.4m in 2012 compared with £16.3m in the previous year despite revenues falling 6.7% to £45m. Its end of year cash position had dropped 36.5% to £2.2m.The company said: "The extended cash-to-cash cycle of key markets in the Asia-Pacific region combined with supply chain constraints put additional strain on our working capital, so we reined in production during the final quarter in order to rebalance inventory and maintain cash."It added: "In order to fully exploit the significant opportunities available in 2013 - and to return to sustainable profitability - Tanfield requires additional working capital, beyond the £2.1m placing in April 2013."The company had previously reported receiving bid interest for its power access division and its Snorkel brand. It said in April it hired an advisory firm to explore and manage the process of getting the best value for shareholders. It will not be paying a dividend.TB