Smiths Electric Vehicles - TNT van

 First published in InFocus: UK Quoted Clean Motoring, July 2007. ©  Cleantech Investor Ltd.

AIM listed Tanfield acquired Smith Electric Vehicles, a commercial vehicle manufacturer, in 2004. Smith Electric has several trials in place with fleet operators including Sainsbury’s, DHL and Marks & Spencer. Morgan Stanley estimates that there is a potential market for electric powered commercial vehicles of over 200,000 in the EU. The OEMs have not tended to enter into this niche segment, focusing instead on hybrid technology. The other main player in the segment is privately owned Modec.

Tanfield’s Powered Access Platforms business is still its largest business. The EU ‘Working At Height’ regulations are underpinning demand for powered access equipment and Morgan Stanley is forecasting compound growth of 30% for both of the company’s divisions. Morgan Stanley is optimistic on the prospects for Tanfield. Its price target is 160p, but Morgan Stanley acknowledges that there is ‘a credible bull case of 250p’.