Final Results

Tanfield Group PLC
22 April 2008


                             THE TANFIELD GROUP PLC

                   ('TANFIELD', THE 'GROUP' OR THE 'COMPANY')

                              PRELIMINARY RESULTS

                        FOR THE YEAR TO 31 DECEMBER 2007

The Tanfield Group Plc, the leading manufacturer of zero emission electric
vehicles and aerial work platforms, is pleased to announce its Preliminary
Results for the financial year ending 31 December 2007.

Highlights:

Financial

   • Strong financial performance across the Group:

o        Turnover increased 201% to £123m (2006: £40.9m)

o        Profit after tax from continuing operations increased 310% to £11.9m
         (2006: £2.9m)

o        Basic Earnings per Share increased 194% to 3.59p (2006: 1.22p)

o        Net cash at year end £28m, (June 07 £4.9m)

o        Net assets of £165m (2006: £43.4m)

Operational

   • Agreement with Ford on development of commercial electric vehicles
   • Agreement to develop and manufacture electric taxi cab
   • Launch new light van utilising Tanfield derived IP
   • Confirmed vehicle order book for remainder of 2008 of 523 units
   • Expansion of vehicle production facilities on track
   • Powered Access order book for 2008 of £101m
   • OEM agreement signed with Manitou
   • Record US customer backlog of $111m
   • Snorkel acquisition fully integrated
   • Expansion of Powered Access facilities on track


Commenting, Darren Kell, Chief Executive of The Tanfield Group Plc, said: 'We
have delivered an excellent set of results, in line with our strategy for
profitable growth.

'We have strengthened our position as the worldwide leader in commercial
electric vehicles and continue to develop our powered access division into one
of the leading global players in this sector.

'We are already delivering on our strategy for 2008 and retain an extremely
robust outlook for future performance.'

For further information:
The Tanfield Group Plc        Tel: [phone] on 22 April
                              only
Darren Kell, Chief Executive
                              Tel: [phone] thereafter
Charles Brooks, Finance Director

www.tanfieldgroup.com

Fishburn Hedges               Tel: [phone]

Morgan Bone                   Mob: [phone]

Michelle James                Mob: [phone]

                              [e-mail]

Cenkos Securities plc         Tel: [phone]

Stephen Keys

St. Helen's Capital plc       Tel: [phone]

Seb Wykeham

Ruari McGirr


Notes to editors

The Tanfield Group Plc is the world's leading developer and manufacturer of
road-going commercial electric vehicles and aerial work platforms. Tanfield is
headquartered in Washington, Tyne & Wear, with operations in Europe,
Scandinavia, North America, the Middle East, Asia-Pacific and Africa. It has two
main divisions:

Smith Electric Vehicles, was founded in 1920 and acquired by Tanfield in October
2004. Following its acquisition, Smith is developing into a world leader in new
technology electric vans and trucks with greatly enhanced performance, speed and
range capabilities. This makes them attractive for all fleet operators in large
towns, cities and closed industrial environments. For the first time, these
fleet operators have economically viable, zero emission alternatives to using
diesel vans and trucks. Smith has an unrivalled UK-wide service and support
network, which already maintains over 5,000 vehicles for major fleet operators.
Smith's airport offering is complemented by two specialist airport vehicle
sub-divisions; Jumbotugs and Norquip.

www.smithelectricvehicles.com

Powered Access, contains two of the world's most established aerial work
platform brands, UpRight Powered Access and Snorkel International. UpRight is
the UK's biggest manufacturer of self-propelled aerial work platforms (also
known as 'cherry-pickers', 'mobile elevating work platforms', 'aerial lifts',
etc). UpRight has assembly facilities in the UK and USA, with products sold
through a strong network of over 200 independent, full-service distributors
across Europe, Scandinavia, the Middle East and Asia-Pacific regions. Snorkel,
acquired in August 2007, has significant manufacturing capabilities along with
strong sales and distribution, in North America and Australasia. Tanfield has
successfully extended its powered access product range and is now one of only
three 'full line' aerial lift manufacturers to have a significant global
footprint in both the North America and EMEA regions, in what is a $7bn market.

www.upright.com / www.snorkelusa.com


                              CHAIRMAN'S STATEMENT

I am delighted once again to report a record set of results, achieved in another
transformational year for the Group.

The Board remains committed to creating value for our shareholders through the
growth of our core divisions. We have again delivered a superb financial
performance, demonstrating Tanfield's successful execution of its strategy for
high growth, while maintaining profitability.

This illustrates that the Company as a whole has taken another significant step
towards becoming an established world leader in its chosen markets.

Financial Performance

2007 was a year of significant growth, as the Group maintained focus on its two
main divisions, Powered Access and Zero Emission Vehicles. This resulted in a
194% increase in basic earnings per share from 1.22p to 3.59p. Turnover
increased 201% to £123m, compared to £40.9m in 2006 and profit after tax from
continuing operations rose 310% to £11.9m, from £2.9m in 2006.

Sales in the Zero Emission Vehicles division grew 37%, from £19m in 2006 to £26m
in 2007. The Powered Access Division grew sales from £11m in 2006 to £90m in
2007, an increase of 718%.

Delivering Our Strategy

The growth achieved in 2007 was primarily organic, building on the acquisition
of UpRight in 2006 and the further development of our new range of higher
function commercial electric vehicles.

The most impressive growth occurred in the Powered Access division, as 2007 was
the first full year to benefit from our reinvigoration of the UpRight brand
(acquired in June 2006). We grew its independent distributor network during 2007
from 45 to over 180 companies and this drove a significant increase in sales.

To meet this higher demand from our customer base, we also increased output
tenfold at Vigo Centre, our UK headquarters, from 20 units per week at the close
of 2006 to 200 per week at the end of 2007.

The acquisition of Snorkel International Inc on 1 August 2007 is delivering the
intended benefits. It accelerated the Group'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 us many years to develop. As a result, the Group
is now one of four 'full line' manufacturers in the powered access market and
one of only three with a truly global footprint.

The Zero Emission Vehicles Division also enjoyed unprecedented growth, as two
next-generation electric vehicles went into full production and achieved strong
sales.

Edison is the world's first higher function electric van with a Gross Vehicle
Weight (GVW) of under 3,500kg. This is critical to domestic sales, as anyone
with a standard UK driving licence can operate vehicles under this GVW. Vehicles
of a higher weight require drivers to have a commercial vehicle licence - and
qualified drivers command higher wages.

Newton is the world's first higher function electric truck and remains the
world's largest commercial electric vehicle, offered in GVWs from 7,500kg to
12,000kg. It uses a truck chassis cab from Avia in the Czech Republic.

We launched the Smith Newton in December 2006 and this generated significant
sales throughout 2007, as we added further variants up to a Gross Vehicle Weight
(GVW) of 12,000kg, based on the same chassis cab configuration.

Newton was followed by the Smith Edison, utilising the Ford Transit shell. We
launched Edison in April 2007 at the Commercial Vehicle Show, one of the largest
annual events for vans and trucks in Europe. The addressable market for vans is
considerably larger than that of truck-sized goods vehicles and Edison is
already outselling Newton 2:1.

Sales of these vehicles in 2007 confirmed Tanfield's position as the world's
largest manufacturer of road-going, commercial electric vehicles and maintained
our market leading position.

We successfully capitalised on market drivers that increasingly influence
operators of urban vans and trucks. The most obvious benefit is reducing the
environmental impact of a customer's commercial vehicle fleet, by providing 100%
reduction in greenhouse gas (GHG) emissions and air pollutants, at the point of
use. This can manifest as an economic benefit, as worldwide, zero emission
vehicles are almost always exempt from road pricing such as congestion charges
or highway tolls. For third party logistics providers, adopting zero emission
vehicles can also provide a competitive edge, as a growing number of
environmentally-conscious blue chip companies are demanding that their supply
chain also reduces its carbon footprint.

With only a relatively small number of moving parts in the electric drive train
and greatly reduced 'fuel' costs, operating overheads for our EVs are
significantly lower than those of the equivalent diesel vehicles. Finally, the
driver experience is much more pleasant, as urban drivers do not have to endure
the countless gear changes or cab vibration, noise and smell associated with
diesel vehicles.

During 2007, the growth achieved by this division was chiefly as a result of
increases in vehicle sales, underpinned by our EV service and maintenance
operations.

Our People

In July 2007, Tanfield embarked on a comprehensive training programme that will
see all production workers at Vigo Centre achieve an NVQ qualification in BIT
(Business Improvement Techniques).

This programme has had a tangible impact on the shop floor. By the end of 2007,
we had achieved a significant increase in productivity on the main Powered
Access assembly lines.

Board Changes

We regularly review the composition of the Board to ensure it continues to
provide the right leadership for the Group's further development.

On 23 May 2007 Colin Billiet joined the Board as Non-Executive Director. His
experience as former Chief Executive of high growth, multinational, filtration
product manufacturer Domnick Hunter will be extremely valuable as Tanfield
continues to grow globally.

In January 2008, I became non-executive Chairman.

Summary

The Group has experienced another exciting year of exceptional growth and
improved profitability.

We have increased our global presence in sizeable markets, which continue to
present significant opportunities for growth. We remain a market leader in
commercial electric vehicles and the Group's strategy continues to focus on
growing its two core divisions, both organically and - where opportunities arise
- through acquisition.

I would like to thank all our people for their efforts and for the continued
support of all our stakeholders.


Roy Stanley,

Chairman



Chief Executive's Review of 2007 & Trading Update for Q1 2008

Zero Emission Vehicles Division

Ford Partnership

Tanfield has reached a broad agreement with Ford to collaborate on future zero
emission vehicle projects and is investigating further opportunities in sales,
marketing and product development both in Europe and North America.

The agreement includes dual-badging certain vehicles as Ford and Smith products
and marketing support. Ford will continue to supply considerable engineering
resource for the design and development of future commercial electric vehicles.
This resource is focused on the chassis and does not involve Tanfield sharing
its knowledge, expertise or intellectual property concerning the electric drive
train.

We continue to strengthen and grow our relationship with Ford, which we believe
provides Tanfield with a considerable competitive advantage over our peers.

Joint Venture to Produce Pure Electric Taxi Cab

Tanfield has signed an agreement with LTI Vehicles Ltd (LTI), a subsidiary of
Manganese Bronze Holdings Plc (MNGS), to produce a battery powered, zero
emission urban taxi cab.

Under the agreement, LTI and Tanfield will produce an all-electric version of
LTI's TX4 black cab, branded the TX4E. Preliminary specifications for the
vehicle are a top speed of 50mph and a range in excess of 100 miles on one
battery charge.

The TX4E will contain all the conventional features of the TX4, but will be
powered by Tanfield's advanced electric drive train and Iron Phosphate
lithium-ion battery pack. It will be manufactured in the UK for the domestic
urban taxi market and sold through LTI's distribution network.

Based on current electricity prices, the vehicle will cost less than 4p per mile
to run, therefore providing significant whole life cost savings over an
equivalent diesel vehicle.

We believe that this partnership will create a unique and highly marketable zero
emissions vehicle and see the TX4E as an exciting growth opportunity that gives
us first mover status in what is potentially a very large global marketplace.

Sales and Order Book

Tanfield built and shipped 260 vehicles in 2007, in line with internal targets.
The Company delivered 200 out of the 260 units in the second half of the year,
as we successfully ramped up production.

We closed 2007 with an order book of 387 units and at the end of March 2008, the
confirmed order book for the remainder of 2008 stood at 523 units. This is a
combination of initial orders, plus a myriad of fleet orders from clients moving
from the low volume trial stage to smaller fleet purchases. We expect this
process will lead to further significant volume fleet orders in 2008.

In the first three months of 2008, we built and shipped 146 vehicles to over 50
new customers in the private sector, along with a considerable number of public
sector organisations.

Other Developments

We improved on our marked increase in production capacity as 2007 progressed and
ended the year with the proven output capability of up to 28 vehicles per week.
Currently we have the production capabilities to produce 30 vehicles per week,
compared to 10 per week at the start of 2007. To facilitate further growth, we
have identified a dedicated production facility for the Zero Emission Vehicles
Division. This 150,000sq ft (14,000sq m) factory, also in the North East of
England, will provide maximum capacity for 3,000 vehicles per annum - or 58
vehicles per week, ensuring the electric vehicle business has the space to grow
over the medium term.

Plans are at an advanced stage to transfer the entire Zero Emissions Vehicles
Division, including the Sales, Product Support, Technical, and Production teams.
We anticipate that the first vehicles will begin to roll off the new lines of
this facility early in the second half of 2008.

The strategy we outlined at the beginning of 2007 was to sell seed vehicles to
major fleet operators in our core market of UK urban delivery, while
establishing the methodology for volume production. Against these targets, Smith
Electric Vehicles delivered an excellent performance throughout 2007. Our
vehicles continue to demonstrate cost savings and environmental benefits to
major fleet operators.

We significantly increased our addressable market with the launch of several new
products, on 15 April 2008, at the Commercial Vehicle Show (CV Show) in
Birmingham, UK.

Ampere is based on the Ford Transit Connect chassis cab and has a GVW of
2,340kg, with payload capacity of up to 800kg. This smaller, lighter vehicle
sector is the largest volume market within commercial vehicles. We will begin
full production of Ampere in the second half of 2008.

Ampere is dual badged as both a Ford and a Smith Electric Vehicles product and
Ford launched Ampere on its stand at the CV Show concurrently with Smith. Ford
provided significant engineering support with regard to the Connect chassis
throughout the vehicle design and development process. Ampere is powered by a
drive train developed in-house and Tanfield retains all the intellectual
property on this drive line.

Ford has already announced that the Ford Transit Connect will be sold in North
America and has unveiled a taxi cab variant intended for the USA. We will launch
our Ampere vehicle in North America concurrently with Ford's launch of the
Connect, next year.

The CV Show also marked the launch of our new Edison series, powered by an Iron
Phosphate lithium-ion battery pack. This advanced technology allows us for the
first time to produce van-sized vehicles with the same carrying space as the
equivalent diesel vehicles. The previous battery technology could not be
packaged as intricately and ate slightly into Edison's load area.

Joining the panel van and chassis cab variants of Edison is a new, pure electric
minibus. The minibus is in the final stages of pre-production and customer
deliveries will commence later this year. All Edison models are based on the
Ford Transit chassis and, going forward, will also be dual badged as Ford and
Smith products.

A small but significant number of fleet operators in the UK require heavy vans
with a GVW in excess of 3,500kg, for extra payload capabilities. To accommodate
this sector of the market, Tanfield has specifically developed a larger version
of Edison, utilising the new 4,600kg larger Ford Transit chassis cab.

In North America, Ford has agreed to supply Tanfield with a range of its
F-Series commercial vehicles as the chassis cabs for our US-specific commercial
vehicles. This will include the F350, F450, F550 and F650 vans and trucks,
providing us with vehicles that will be recognisable to and readily accepted by
American customers.

The requisite design engineering work to bring these vehicles to market is
underway and we displayed a pre-production, all-electric F650 truck at the CV
Show. We are working through the necessary legislative requirements for vehicle
type approval in North America, with support from Ford, and expect to commence
US manufacture in the second half of 2008.

Following the development of our relationship with Ford in the USA, we have
re-examined our options for the manufacture of vehicles in North America. As a
result, the Board has identified several potential sites in North America for
the production of commercial electric vehicles and we will provide further
detail in due course.

Edison and Newton are both attracting buyers outside of their core market of
urban delivery vehicles. We have now delivered product to diverse sectors
including vehicle rental, tool hire, utilities, airports, telecommunications,
construction and highways. In short, our electric vehicles are demonstrating
cost savings, improved driver satisfaction and environmental benefits for
customers in a widening range of applications for commercial vehicles within a
closed urban environment.

We have achieved our first sales into mainland Europe, to customers now
including TNT in the Netherlands and Carlsberg in Switzerland. Europe represents
a significant opportunity for Tanfield's electric vehicles and the Group is
embarking on a strategy of appointing distributors for Smith Electric Vehicles
in key European territories.

Powered Access Division

The order book at the end of December 2007 stood at £83m, compared to £35m at
the close of 2006. We increased production tenfold in this period and have
significantly reduced lead times on all machines.

We have enjoyed a strong start to the year and sales for the first three months
of 2008 reached £43m. At the end of March 2008, the confirmed order book for the
calendar year 2008 stood at £101m. This reflects our increased penetration of
all key target markets, including North America, Europe, Scandinavia, Russia and
the Baltics, the Middle East and the Asia-Pacific region.

Total global production capacity currently stands at 320 units per week,
compared to 270 units per week at the close of 2007 and 45 units per week at the
end of 2006.

At Vigo Centre, we have maintained production capacity at 200 units per week,
despite introducing larger products with a higher unit price into the build mix.
The relocation of the Zero Emission Vehicles division will allow for the crane
lines to increase in length and will provide room for up to two more similar
lines. This space will be required for the larger, more expensive machines we
wish to build in Vigo.

The acquisition of Snorkel Holdings LLC in August 2007 significantly enhanced
our Powered Access product offering, improved our market presence in North
America and increased our production capabilities.

Snorkel is enjoying its strongest start to the year for a decade, with sales of
£21m in the first three months of 2008. Through our cross-selling into the
UpRight distributor network, Snorkel is exporting more machines than ever
before.

Similarly, Tanfield is significantly increasing Snorkel's domestic sales, in
particular to Tier One equipment rental companies. Examples of this growth
include one of America's largest equipment rental companies outlining an initial
fleet requirement in excess of US$50m. Tanfield has achieved preferred vendor
status with this customer and we are examining further opportunities to grow
sales and develop the relationship. Another major rental company and
long-standing Snorkel customer placed a US$10m order for Snorkel products at the
ConExpo construction equipment exposition in Las Vegas in March 2008.

The strong start to 2008 by Snorkel, allied to our successful strategy of
pushing the Snorkel big booms through the UpRight distribution channels outside
of America, has significantly increased demand on Snorkel's production
facilities in Kansas, USA. Although we have initiated a plan to ramp up
production in Kansas by 60%, we have already sold the first six months of output
in 2008.

We are increasing the assembly footprint in Kansas by 100,000sq ft, or 25 per
cent. Through the introduction of lean manufacturing techniques and smarter
working practices, we also expect to significantly improve efficiencies from the
existing floor space.

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 we further expanded,
developed and refined this supplier base during 2007. Initial payment terms had
a detrimental effect on working capital, but we successfully negotiated much
more favourable terms as volumes grew.

We are switching Snorkel to this low cost supply chain and expect the process to
be complete by end of 2008.

During 2007, we increased the UpRight distributor network to 180 members and
have raised this to over 200 dealers during the first three months of 2008. We
increased the UpRight product portfolio from 10 machines to over 30, by
re-introducing models discontinued under the previous owners and by adding
Snorkel products to the range.

I am pleased to announce that Tanfield has signed an OEM agreement with
construction equipment and aerial work platform manufacturer Manitou. Under the
agreement, Tanfield will manufacture certain key products from its range for
Manitou's Maniaccess range of aerial work platforms, to be sold via Manitou's
extensive global network of over 500 distributors.

We have further augmented the UpRight distributor network in the first quarter
of 2008, by appointing strong dealers in key territories including Southern
Africa, the Iberian Peninsula and the Middle East.

Market Outlook

1.      Zero Emission Vehicles Division

At the end of March 2008, UK diesel at the pump cost 115p per litre vs 93p in
March 2007, a rise of 19.1%. US diesel pump prices are now around $4 per gallon,
up $1.17 in the past 12 month, an increase of 29%. For first time, US freight
operators are spending more on fuel than labour. Every increase in fossil fuel
prices underlines the economic argument for our vehicles.

A growing number of cities are imposing fiscal penalties on commercial vehicles
which enter their most densely populated urban centres, in a bid to reduce
congestion and improve air quality. The continued exemption of electric vehicles
from these congestion charges and road tolls adds to the inherent cost savings
that our products already provide to customers.

The Board continues to expect that the economic, environmental and operator
benefits of deploying electric vehicles over conventional vehicles in urban
areas will increase the number of fleet managers who engage with us.

The widespread success of field trials with logistics and delivery companies
during 2007 will continue to drive volume sales in 2008 and beyond. Our early
penetration of other sectors deploying urban fleets bodes well for the
development of new markets, while buoyant sales of commercial vehicles in the UK
and Europe demonstrate that both the overall market and our addressable market
are growing.

The appetite for electric vehicles in the USA is extremely strong and we expect
this market to develop at a much faster rate than in Europe. Also, our early
experiences with US customers indicate that in many cases, the percentage of
vehicles within a fleet which fall within the operating capabilities of our EVs
is higher than in the equivalent sector in Europe.

The launch of the world's first higher function electric minibus and the world's
first high performance electric light van further consolidate our position as
the market leader in zero emission commercial vehicles. No other manufacturer in
the world can offer anywhere near the breadth and depth of Tanfield's road-going
electric vehicle portfolio.

The cementing of our partnership with Ford, one of the most respected names in
the automotive industry, underlines our global leader status, allows for faster
and more efficient new product development and provides access to new, untapped
markets. We expect this relationship will create many more exciting
opportunities for both companies to exploit as we develop together.

2.      Powered Access Division

Snorkel enjoys an excellent reputation among leading North American aerial lift
rental companies - all of whom are forecasting considerable capital expenditure
on fleet replacement and/or expansion during 2008.

Snorkel's position in this critical sales territory is unique, in that it is a
well-respected brand but has not reflected this eminence in market share. As
part of The Tanfield Group Plc, Snorkel is already beginning to properly
leverage its brand equity.

The outlook for the US construction market remains mixed, but most signs are
that non-residential construction - the key end user market for larger aerial
work platforms - will continue to grow, albeit at a reduced rate. Residential
construction has little impact on our Powered Access sales. This is because the
chief product offering in the residential sector from our peers is the rough
terrain fork lift, or telehandler. Tanfield does not manufacture telehandlers,
so is nowhere near as exposed to trends in residential construction as its
competitors.

Globally, the outlook for the construction industry is extremely healthy.
Regions expected to grow the most this year include the Middle East, Russia &
the Baltics and Southern Africa. Tanfield has worked hard to appoint high
quality distributors in all these territories.

The continued growth of non-residential construction is equally as important to
the smaller aerial work platforms in the product range, as these machines are
primarily deployed in repair and maintenance of commercial and industrial
premises.

Globally, end user purchases represent just 30% of all powered access sales,
with the remaining 70% sold direct to equipment rental companies. Our increasing
penetration of the rental sector therefore represents a significant opportunity
going forward. The growth achieved with UpRight in 2007 was almost entirely from
sales to end users, via the distributor network, with practically no sales to
large equipment rental companies. However, the added value that UpRight's unique
distributor network brings is also attracting rental company business in
Scandinavia, Europe, the Baltic States and the Middle East. Along with our
expanded product range, rental companies particularly appreciate the local,
own-language product support with which the dealers can provide them. We are
engaging with all of the major rental companies in Europe and Scandinavia at
present and will continue to explore sales in this market, where appropriate.

Current Trading & Prospects

2007 was another highly successful year for the Company, as we once again
transformed potential into profitable sales. In both divisions of Powered Access
and Zero Emission Vehicles, we have successfully ramped up production, increased
sales, enhanced the product range and expanded our global reach.

Our decision to utilise proven chassis from major manufacturers as the basis for
our electric vehicles, rather than design a new product from the ground up, is
proving to be the best route to growing profitable sales. It enables us to take
years off the time frame of bringing a new vehicle to market. This strategy also
allows us to benefit from the original vehicle manufacturers' investment in
design development, which typically totals hundreds of millions of pounds. It
provides us with robust and reliable chassis, which means we can focus our
resources on the battery and electric drive train. Crucially, it also avoids any
potential reliability issues that a newly-designed chassis could encounter.

The achievements of the first quarter of 2008 demonstrate that we are
capitalising on the highly promising opportunities afforded by our growing
global reputation. These new opportunities, allied to the ongoing development of
existing products and sales channels, will continue to support the execution of
our high growth strategy.

Finance Director's Report

All figures and their comparatives are presented in line with the International
Financial Reporting Standards (IFRS).

In 2007 we delivered another record financial performance. Revenue was up 201%
to £123m (2006: 98%). EBITA before restructuring was up 256% to £14.6m (2006:
£4.1m). Profit from continuing operations before restructuring rose to £13.1m
(2006: £5.7m)

The dramatic increases result from good organic growth in both zero emission and
powered access divisions because of the increase in the volumes of new electric
vehicles made and sold, and the execution of the ramp up the reinvigorated
Upright brand. The results benefitted from the contribution of Snorkel
International Inc following its acquisition in August.

Amortisation of Acquired Intangibles and Restructuring Costs

Profit from Operations is reported after charging Amortisation of £1.8m (2006:
£0.4m) arising from the write down of Intangible Assets valued following
acquisitions, of which £0.9m resulted from the acquisition of Snorkel.

Restructuring costs in the year of £1.2m related to costs arising following the
acquisition of Snorkel. 2006 restructuring costs of £1.9m related to the UpRight
acquisition.

Net Operating Expenses

Operating expenses are stated net of operating income from Government Grants and
recovery of a Snorkel customer debt of £2m.

Net Finance Income

Net finance Income in the period was £0.9m (2006: Finance costs £0.1m)
reflecting the net cash position held by the group throughout the period.

Profit before Tax

Profit before tax for continuing operations was £12.4m up 235% on 2006. There
was a loss in the year for discontinued operations of £1.5m.

Taxation

The tax charge includes £1.7m of tax costs arising in the US, of which £0.4m was
a non cash cost related to the creation of a deferred tax liability.

Earnings

Earnings per share increased by 194% to 3.59p (2006:1.22p). No dividend has been
declared (2006:nil). The retained profit of £10.4m has been added to reserves to
fund further business growth.

Net Cash

At 31 December 2007, the Group had cash of £28m. This cash will be used to fund
further development of the business, including a transition in the supply chain.

Acquisitions

The Group acquired Snorkel International Inc on 1 August 2007. The acquisition
was funded through a private placing.



TANFIELD GROUP PLC

CONSOLIDATED INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2007
                                                           Restated
                                                 2007          2006
                                               £000's        £000's
Continuing Operations
Revenue                                       123,288        40,580

Other operating income                              -             -
Changes in inventories of finished              8,702         1,222
goods and WIP
Raw materials and consumables used           (87,980)      (20,224)
Staff costs                                  (23,667)      (11,041)
Depreciation and amortisation expense         (2,724)           845
Other operating expenses                      (4,791)       (5,696)
Restructuring costs                           (1,270)       (1,877)

Profit from continuing operations              11,558         3,809

Finance costs                                     879          (84)

Net Profit before tax for year                 12,437         3,725

Income tax expense                              (560)         (823)

Profit for the year from continuing            11,877         2,902
operations

Discontinued operations
(Loss)/Profit for period from                 (1,484)         (398)
discontinued operations

Net profit for the year                        10,393         2,504

Earnings per share
From continuing operations
Basic                                           3.59p         1.22p
Diluted                                         3.41p         1.14p

From continuing and discontinued
operations
Basic                                           3.14p         1.05p
Diluted                                         2.99p         0.99p


The results for year ending 31 December 2006 have been restated for the
activities discontinued in the year ending 31 December 2007.


CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2007

                                                 2007          2006
                                               £000's        £000's
ASSETS
Non Current Assets
Property, plant and                             6,098         3,734
equipment
Goodwill                                       32,244         5,143
Intangible assets                              22,685         5,792
Deferred tax asset                                785             -
                                               61,812        14,669
Current Assets
Inventories                                    60,352        14,158
Trade and other                                47,197        13,833
receivables
Investments                                       120            94
Current tax assets                              1,459             -
Cash and cash equivalents                      27,952        13,605
                                              137,080        41,690
TOTAL ASSETS                                  198,892        56,359
LIABILITIES
Current Liabilities
Trade and other payables                       26,406         6,801
Tax liabilities                                     -         1,178
Obligations under finance                         684           421
leases
Bank & other loans and                              -           163
overdrafts
Other creditors                                   467         2,221
                                               27,557        10,784
Non Current Liabilities
Bank & other loans                                  -           948
Other creditors                                 5,021           310
Obligations under finance                       1,100           549
leases
Deferred tax liability                              -            19
Convertible loan notes                              -            69
Provisions                                          -           262
                                                6,121         2,157
TOTAL LIABILITIES                              33,678        12,941
EQUITY
Share capital                                   3,703         2,921
Share premium account                         138,493        29,578
Share option reserve                              992           255
Loan stock equity reserve                           -             6
Merger reserve                                  1,534         1,534
Capital reduction reserve                       7,228         7,228
Translation reserve                               879             -
Profit and loss account                        12,385         1,896
TOTAL EQUITY                                  165,214        43,418

TOTAL EQUITY AND                              198,892        56,359
LIABILITIES





CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2007

                      Share   Share   Share    Loan  Merger   Capital Translation  Profit   Total
                    capital premium  option   stock reserve reduction     reserve     and  Equity
                                    reserve  equity           reserve                loss
                                            reserve                               account
                     £000's  £000's  £000's  £000's  £000's    £000's      £000's  £000's  £000's

Balance at 1          2,921  29,578     255       6   1,534     7,228           -   1,896  43,418
January 2007

Issue of new share      706 107,893       -               -         -           -       - 108,599
capital
Exercise of               8      67       -     (6)       -         -           -       -      69
convertible loan
stock
Share options            68     955       -       -       -         -           -       -   1,023
exercised
Exercise of share         -       -       -       -       -         -           -      96      96
options
Share option              -       -     737       -       -         -           -       -     737
provision
Foreign exchange          -       -       -       -       -         -         879       -     879
differences on
retranslation of
investments in
subsidiary
undertakings
Net profit for the        -       -       -       -       -         -           -  10,393  10,393
year

Balance at 31         3,703 138,493     992       -   1,534     7,228         879  12,385 165,214
December 2007


CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2007

                                                       2007              2006
                                                     £000's            £000's

Operating Activities
Profit from Operations                               10,074             3,455
Depreciation, Amortisation and                        3,320             (773)
Impairment
Movement in Working Capital                        (42,435)           (9,930)
Cash used in operations                            (29,041)           (7,248)
Income taxes paid                                   (2,943)                 -
Interest paid                                         (331)             (208)

Net Cash used in Operating activities              (32,315)           (7,456)

Investing Activities
Acquisitions                                       (44,564)           (6,851)
Purchase of property, plant and                     (1,851)             (503)
equipment
Proceeds from sale of property plant                    758               150
and equipment
Purchase of investments                                (23)              (94)
Purchase of intangible fixed assets                 (2,949)             (312)
Interest received                                      1210                34

Net cash used in investing activities              (47,419)           (7,576)

Financing Activities
Issue of ordinary share capital                     109,622            29,055
Repayment of bank loan                             (14,904)             (870)
Capital element of finance leases                     (621)             (567)

Net cash from financing                              94,097            27,618

Net Increase in Cash and Cash Equivalents            14,363            12,586

Cash and cash Equivalents at beginning               13,546               960
of Year
Effect of foreign exchange changes                       43                 -
Cash and Cash equivalents at end of                  27,952            13,546
the year



Notes to the financial statements at 31 December 2007

1      Accounting Policies
       The financial statements have been prepared in accordance with
       International Financial Reporting Standards as adopted by the EU
       ('IFRS').

2.    Unaudited Financial Statements

      The above figures do not constitute full accounts within the meaning
      of Section 240 of the Companies Act 1985.

      The figures for the year ended 31st December 2006 constitute
      abridged accounts extracted from the published accounts for the year
      which have been filed with the Registrar of Companies and on which
      the auditors' report was unqualified and did not contain a statement
      under Section 237(2) or (3) of the Companies Act 1985.

3.    Earnings per ordinary share

      Earnings per share have been calculated using the weighted average
      number of shares in issue during the relevant financial periods. The
      weighted average number of shares in issue is 331,253,401 (2006 -
      237,396,217), and the earnings, being the profit on ordinary
      activities after taxation and minority interest are £10,393,000
      (2006: 2,504,000).

      The weighted average number of shares for diluted earnings per share
      is 347,837,812 (2006 - 252,639,362) and the diluted earnings are
      £10,393,000 (2006 -£2,490,000).
                                           Year ended 31 Year ended 31
                                           December 2007 December 2006
                                                   Pence         Pence
      Basic Earnings Per share                      3.14          1.05
      Diluted Earnings per share                    2.99          0.99







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