Tanfield Group PLC Corporate Update (5177U)
July 13 2018 - 1:00AM
UK Regulatory
TIDMTAN
RNS Number : 5177U
Tanfield Group PLC
13 July 2018
Tanfield Group Plc
("Tanfield" or the "Company")
Corporate Update
The Board of Tanfield (the "Board") is pleased to inform the
market that it expects to announce its half year results for the
period ending 30 June 2018 during September 2018.
Background
The Company is currently defined as an investing company that
has two passive investments. This status resulted from the disposal
of Smith Electric Vehicles in 2010 and the joint venture between
Tanfield Group Plc and Xtreme Manufacturing LLC ("Xtreme"), a
Company owned by Don Ahern of Ahern Rentals Inc ("Ahern"), relating
to Snorkel, in October 2013. Tanfield currently owns 49% of Snorkel
International Holdings LLC ("Snorkel") and 5.76% of Smith Electric
Vehicles Corp. ("Smith").
The strategy of the Company in relation to these investments is
to return as much as possible of any realised value to shareholders
as events occur and circumstances allow, subject to compliance with
any legal requirements associated with such distributions.
Summary
-- As reported in the Snorkel investment update on 21 June 2018,
following a material increase in selling, general and
administrative costs in Q1 2018, the Board reassessed the lower-end
indicative value of its interest in Snorkel as being $25.3m and
based on the most recent financial information, this value is now
likely to be the realisable value if the call option is exercised
in October 2018.
-- The Board expects to update the market with the Snorkel Q2
2018 results around the end of August 2018.
-- In the absence of any material change in the Snorkel Q2 2018
results, it is the Board's intention to impair the Snorkel
investment value from GBP36.3m to GBP19.1m ($25.3m) which
represents approximately 12p per share.
-- In the event that the call option is exercised in October
2018, the Board will need to assess the Company's position and, if
necessary, take appropriate advice.
-- Smith continues to be held at a nil balance sheet value
following the impairment of the investment at the end of 2015.
For further information:
Tanfield Group Plc
Daryn Robinson 020 7220 1666
WH Ireland Limited - Nominated Advisor / Broker
James Joyce / Alex Bond 020 7220 1666
The information contained within this announcement is deemed by
the Company to constitute inside information under the Market Abuse
Regulation (EU) No. 596/2014.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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