Tanfield's electric vehicle investment ceases operations

Investment firm Tanfield Group has announced that Smith Electric Vehicles, in which it holds a 5.76% stake in, has ceased operations following a lack of funding after moving operations to the US.

The AIM-listed company decided to impair its investment value in Smith, a manufacturer of zero emission commercial electric vehicles, to nil due to the uncertainty around its future and the level of funding it required.

In August 2016, Smith said that it planned to centralise its operations in the US while also retaining a presence in the UK as a branch of Smith USA Corp but due to a lack of funding, it has recently stopped all activity in the US and UK.

The company confirmed that Smith’s chief executive John Dixon, has retired from the board and that the remaining board members are exploring possible funding options.

Smith also said that there was no guarantee it would be successful in raising funds and without funding it is unlikely that Smith would remain solvent.

Shares in Tanfield Group down 5.88% 13.53p at 0930 GMT.