Work platforms maker Tanfield has started to stall a decline a in its sales and expects to return to profit next year
The Washington-based group said it has seen a “significant” increase in output since it pumped £11m into the business in March to ease a bottleneck in it supply chain.
In the six months to 30 June, Tanfield posted revenue of £24.1m, up on its £23.7m performance in 2011. The company said this was achieved through growth in the second quarter.
Until the second quarter, Tanfield said, revenue was declining owing to lack of component availability, resulting from supply chain issues and working capital constraints. This was despite "the strength of demand" for its products.
The sales constraints and supply chain "bottlenecks" have been considerably eased by the investment of £11m raised in a fundraising into the supply chain.
Chief executive Darren Kell said: "Margins have improved, losses have narrowed, and the company predicts having its first post-recession break-even month in October. The outlook for 2013 looks positive, with the company remaining on track for full year profitability."