Snorkel, UpRight Sales Increase 700 Percent in 2007
April 28, 2008 • The Tanfield Group, parent company of UpRight and Snorkel, reported that 2007 was a year of significant growth for the company, resulting in a 194 percent increase in basic earnings per share, a turnover increase of 201 percent to $243.9 million (£123 million) compared to $81.1 million (£40.9 million) in 2006, and an increase of profit after tax from continuing operations, which rose 310 percent to $23.6 million (£11.9 million) from $5.8 million (£2.9 million) in 2006. Sales for its powered access division grew from 21.8 million (£11 million) in 2006 to $178.5 million (£90 million) in 2007.
Growth achieved in 2007 was primarily organic, building on the 2006 acquisition of UpRight in 2006 and further development of its new range of higher function commercial electric vehicles. In 2007, Tanfield said it grew UpRight's independent distributor network from 45 to more than 180 companies, which drove a significant increase in sales. Machine production also increased tenfold at is U.K. headquarters, going from 20 units per week at the end of 2006 to 200 per week at the end of 2007.
Tanfield said the acquisition of Snorkel International in August 2007 is delivering its intended benefits. The acquisition accelerated the company's growth in aerial work platforms through immediate access to new geographical markets complementary to those already served by Tanfield. It also instantly added a range of larger, proven products that would have taken the company a number of years to develop.
In the first three months of 2008, Snorkel reports sales of $41.6 million (£21m) • its strongest start in a decade. Through cross-selling into the UpRight distributor network, Snorkel is exporting more machines than ever before. Similarly, Tanfield is significantly increasing Snorkel's domestic sales to top-tier equipment rental companies. And although Tanfield has initiated a plan to ramp up production in Kansas by 60 percent and increased the assembly footprint by 25 percent, it has already sold the first six months of output in 2008.
Prior to the UpRight acquisition, Tanfield produced the steel fabrications for its aerial work platforms in-house. UpRight brought with it a fabrications supply chain from low cost countries including China, and Tanfield further expanded, developed, and refined this supplier base during 2007. Tanfield reports it is switching Snorkel to this low-cost supply chain and expects the process to be completed by the end of 2008.
Tanfield also announces it has signed an OEM agreement with Manitou to manufacture certain product from the Maniaccess aerial work platform line. The Maniaccess line is not distributed in United States.
