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.



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.



·     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 £36.3m to £19.1m ($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.