Partner Article

Tanfield Group Plc announces half year results

Tanfield Group Plc, an investing company as defined by AIM Rules, has announced its half year results for the period ending 30 June 2015.

The company is currently defined as an investing company, based fromt he North East, that has two passive investments. This status resulted from the disposal of Smith Electric Vehicles in 2010 and the disposal of Snorkel Europe Limited in October 2013. Tanfield Group Plc currently owns 5.76% of Smith Electric Vehicles Corp. (“Smith”) and 49% of Snorkel International Holdings LLC (“Snorkel”).

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.

Aggregate current estimated value of holdings £46.9m ($73.1m), equivalent to approximately 33p per share, a 61% premium to the current market value of the Company, based on the closing mid-price of the Company’s shares on 24 July 2015.

Aggregate valuation comprises;

• Snorkel holding £38.5m ($60.1m) equivalent to approximately 27p per share. The holding value of $60.1m has been converted at the current exchange rate and compares to a sterling holding value of £36.3m on the balance sheet based on the exchange rate at the date of receipt of the holding.
• Smith estimated holding value of £6.9m ($10.7m) based on the the most recent valuation at which Smith received funds , as well as £1.5m ($2.3m) in the joint venture, totalling £8.4m ($13.0) equivalent to approximately 6p per share The book value of the Smith holding on the balance sheet is £4.8m

Snorkel continues to develop its business as announced in the Company’s final results announcement of 22 June 2015 with an increasing demand for its products in a competitive market. Smith are making progress towards achieving their plans to publicly list the business and raising funds to allow for the execution of its strategy.

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