Tanfield Group PLC, which still owns 49 percent of the equity in aerial work platform manufacturer Snorkel, this week estimated its 2014 revenue at about $100 million. Tanfield, echoing comments a week ago by majority owner Don Ahern, said it expects revenues to rise to about $150 million in 2015.
Tanfield reiterated Ahern’s comments that the company is now able to offer 100-percent parts coverage. There has been a working capital investment this year totaling more than $45 million, Tanfield said, meaning that supplier constraints have been reduced and the parts business has improved dramatically.
“This is important in that it means that Snorkel can more effectively support its machines in the field, which was difficult last year due to cash restraints,” said Tanfield in an investment update.
The statement added that Ahern Rental has absorbed the full costs of certain Snorkel assembly and distribution centers. It added that the Snorkel business is redesigning its catalog of equipment with a view to increasing commonality of parts, reducing build cost and improving functionality for the end user. Snorkel is also undertaking an extensive program of rebuilding machines, including a 200,000-square-feet rebuild center in Elmwood, Kan.
“The Tanfield Board takes the view that the signs are very promising for Snorkel in its progress to sustainable profitability,” the U.K.-based Tanfield said.
Tanfield is headquartered in Washington, Tyne & Ware, U.K.