At least there are fewer liquidity problems with this AIM stock
The recent trading update confirmed what most of us already knew, that trading conditions in the second half for Tanfield were difficult.
The year-end cash figure is £11.1m, down on the previous figure of c£13.3m on 31st October 2008. With £8m being collected in the weeks following the year end, cash balances at the end of January 2009 were £13.1m. There was also encouragement from the announcement of a JV with Ford, but more of that below!
Trading conditions in all markets remain challenging, with little visibility and reduced order intake. Given the restricted horizon of the order book, visibility for 2009, in line with peers, is limited according to management.
The better news is of the Smiths Electric Vehicles JV in the US with Ford, in which it will have a 49% stake – thankfully it won’t have to shell out any cash! Tanfield will work with Ford to introduce…
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