This announcement contains inside information for the purposes of Article 7 of the UK version of Regulation (EU) No 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

Tanfield Group Plc

("Tanfield" or "the Company")

Interim Results for the six-month period to 30 June 2022

Tanfield, an investing company as defined by AIM Rules, announces its half year results for the period ending 30 June 2022. The unaudited financial information will shortly be available on the Company website at www.tanfieldgroup.com.

Background

·    Tanfield is a 49% shareholder in the equity of Snorkel International Holdings LLC ("Snorkel") following the joint venture between the Company and Xtreme Manufacturing LLC ("Xtreme") (the "Contemplated Transaction"), a company owned by Don Ahern of Ahern Rentals Inc, relating to Snorkel, in October 2013.

·    The Snorkel investment is valued at £19.1m.  The outcome of the US and UK Proceedings referenced below could have an impact on this valuation.

·    On 22 October 2019, the Company announced that it had received a Summons and Complaint, filed in Nevada (the "US Proceedings") by subsidiaries of Xtreme, relating to the Contemplated Transaction.

·    On 24 October 2019, the Company announced it had become necessary to issue and serve a claim in the English High Court against Ward Hadaway (the "UK Proceedings"), the solicitor acting for the Company at the time of the Contemplated Transaction, in order to fully protect the Company's rights pending the outcome of the US Proceedings. 

·    On 26 February 2021, Ward Hadaway was granted permission to join Foulston Siefkin, Tanfield's US based law firm who were retained in 2013 to draft the documents governed by US law relating to the Contemplated Transaction, into the UK Proceedings.  As a result, the Company amended its claim to include Foulston Siefkin as a second defendant.

·    The Company's operating loss in H1 2022 increased to £311k (H1 2021: £187k) as a consequence of increased legal fees during the period, with the retained loss for the period increasing further to £499k (H1 2021: £268k) as a consequence of increased finance expense.

·    The Board believe that further loan funding may be necessary to ensure that the Company continues to protect its investment in Snorkel.  As announced on 24 August 2022, the Company continues to receive the support of its Shareholders via loan note subscriptions in order to provide the necessary funding for its day-to-day running costs, including the ongoing costs of the US and UK Proceedings, and the Board are of the opinion that further funding will be made available.

Overview of investments

As announced on 24 August 2022, during the first 6 months of 2022 Snorkel has continued to recover from the impact of the global COVID-19 pandemic and has seen sales in the first 6 months increase to US$88.6m, up from US$71.7m for the same period in 2021.  Further information relating to the recent performance of Snorkel can be found in the 24 August 2022 announcement.

The Board confirm that both the US and UK Proceedings are continuing to progress and that the Board believes a positive outcome to either/both proceedings is possible.  So far as it is necessary, the Company will continue to vigorously defend and advance its position in both proceedings, whilst continuing to seek advice. 

Further updates will be provided to Shareholders as and when appropriate.

For further information:

Tanfield Group Plc                                                                          020 7220 1666

Daryn Robinson                                                                                               

WH Ireland Limited - Nominated Advisor / Broker

James Joyce / Megan Liddell                                                       020 7220 1666