One to Watch: Tanfield

TANFIELD is a company I have mentioned in the past. It makes powered access and zero emission vehicle. In addition, Tanfield designs and manufactures engineering parts.

The company's fall from grace has been precipitous. Twelve months ago, the stock was trading at more than 200p and was a market darling. All that changed at the beginning of July, when the company came out with an extremely gloomy statement, confirming growth this year would be "significantly" lower than previously forecast whilst its net cash position had fallen to around 11 million as it faced delays in customer payments. Its customers have been cutting back on orders as the economic slowdown has gathered pace, although Tanfield said its electric vehicles division has held up well.

Tanfield has been downgraded savagely, some commentators even questioning the company's ability to survive. Nothing is guaranteed but Tanfield's underlying business model has proved successful, even if the group has, perhaps, been guilty of over-optimism and over-rapid expansion. Its problems are not unique. OshKosh, one of its main competitors, has also warned of demand issues for aerial work platforms.

Tanfield's prospects are, on the most charitable of interpretations, opaque. However, the return of Roy Stanley, the founder, to executive authority, followed by his buying 4.42m shares, did something to restore a little confidence in the stock price. Tanfield may not have justified its peak rating but, on the basis of contemporary evidence, today's standing may be equally misplaced.

Tanfield is also doubly burdened by having myself on its share register.

• The value of your investment could fall and you may get back less than you invested. You should take professional advice if you have any doubt about the suitability of this company for your portfolio.