Group revenues fell from £29.9m to £28.1m in the six months to June 2010, although the electric vehicles division improved its revenues from £8.1m to £8.44m. The overall loss fell from £11.4m to £10m, with electric vehicles contributing a slightly higher loss of £2.16m. Smiths Electric Vehicles has been delivering vehicles to the UK government and Sainsbury’s as well as the German government.
Most of the revenues and loss come from the powered access division and there is no real sign of a recovery in this market. The main hope is that rental companies will have to replace aging fleets of equipment at some point.
The net cash figure has declined from £4.77m to £1.81m over the six months to June 2010. Tanfield needs to stem this cash outflow or it will require further funding.
The consolidation of the electric vehicles businesses
SEV US is considering a Nasdaq flotation as part of the deal to merge with UK-based Smiths Electric Vehicles. This is unlikely to happen until the first half of 2011. Tanfield says that it would retain a “significant stake” in the combined group although it also expects to generate cash from the deal. Tanfield argues that the government incentives in the US mean that the market will grow faster than in Europe.
| < Prev | Next > |
|---|
