Overseas trade may spark Tanfield Group improvement

Aug 19 2010 by John Hill, The Journal

ELECTRIC vehicle manufacturer Tanfield Group expects foreign markets to become an increasing part of its business due to the lack of incentives available in Britain.

The Washington company’s chairman Roy Stanley called on the UK Government last October to follow America’s lead in making electric vehicles more of a draw to buyers.

Tanfield CEO Darren Kell echoed that call as the company unveiled reduced losses yesterday.

Operating losses for the six months to June 30 were £9.8m, down from £10.4m in the second half of 2009 and £11m in the first half.

Turnover was £28.1m, much the same as the £28.2m in the second half and £29.9m in the first half.

But although the results were broadly in line with expectations, the company’s share price dropped around 3% after it said that its net cash balance was £2.2m, compared to £5.4m at the turn of the year.

Tanfield expects trading conditions to remain much the same in the second half of the year.

It has started delivery of 47 electric vans through the Government’s Low Carbon Vehicle Procurement programme, and has also supplied vehicles for Sainsbury’s Online.

However, markets outside of the UK now account for a “significant proportion” of order intake for its electric commercial vehicles, and Kell said work abroad has “trebled in the last 12 months”.