Snorkel Posts First-Half Losses, Urges Stockholder Approval of Sale

Oct. 2, 2013

Snorkel posted £18.9 million (about U.S. $30.6 million) in revenue for the first half of 2013, compared to £24.1 million in the first half of 2012, a 21.7-percent decrease as the company was constrained by a lack of working capital. As the owning Tanfield Group said in previous financial statements, Snorkel was unable to take advantage of increasing demand for aerial work platforms because of the lack of working capital. At the same time the company announced its results, it urged its shareholders to approve the sale of Snorkel to Las Vegas-based Xtreme Manufacturing, owned by Ahern Rentals owner Don Ahern, in a deal that was recently announced.

“The board are strongly recommending the recently announced proposed disposal of the powered access division, which de-risks the Tanfield Group, protecting the value inherent within the Snorkel business as well as the holding in Smith Electric Vehicle Corp.,” said Tanfield CEO Darren Kell. “We believe the transaction will ultimately, significantly enhance the value of the Snorkel business and deliver far greater shareholder value in the medium term.”

Tanfield went on to state that global market opportunities for Snorkel remain strongly driven by a recovery in the equipment sector, with Snorkel’s product range, brand and reputation continuing to generate strong demand in the market.

The company posted a net loss of £8.5 million for the first half, after an almost £7 million loss in the first half of 2012.

Tanfield recently agreed to sell a majority ownership in Snorkel to Xtreme, with Tanfield retaining a 49-percent stake in the company. The transaction is subject to approval from Tanfield’s shareholders at a general meeting Oct. 7.

Tanfield Group is headquartered in Washington, Tyne & Wear, U.K.