ENGINEERING group Tanfield is back in the black following a major restructuring programme.

Turnover has also more than doubled at the company, which employs about 300 people at its headquarters in Stanley, County Durham.

The Tanfield Group's interim results for the six months ending June 30 show that turnover has grown to £10.4m, compared with £5.1m for the same period last year.

The results also show a profit of £330,000 and an improved balance sheet, with net assets growing £7.3m in the past six months to £8.3m.

The turnaround follows losses of £5.2m last year from a turnover of £11.8m.

The improved performance follows acquisitions that include Smith Electric Vehicles, the world's oldest and largest manufacturer of commercial electric vehicles.

Tanfield bought Smith last October and has since transferred production from Gateshead to its headquarters in Stanley, County Durham.

The company is about to launch a next-generation vehicle that will compete directly with the diesel van market.

Dubbed Faraday 1, it has a restricted top speed of 40mph and enough battery power to cover up to 80 miles between charges.

The zero-emission vehicle will be aimed at the urban delivery and airport sectors.

Smith has also won orders for its conventional electric trucks - six 7.5 tonne units for a public sector organisation and six refrigerated units for a chilled food distributor.

Tanfield's position in the airport apron sector was strengthened by the acquisition of airport apron vehicle manufacturer Norquip.

It has received orders for four vehicles and a significant number of inquiries which could generate £5m of sales.

Roy Stanley, Tanfield Group chief executive, said: "The results have been enhanced by the success of the operational strategy at the Tanfield site, which has significantly reduced the unit cost of manufacture and improved output volumes.

"The Tanfield site now operates as a single, efficient manufacturing unit covering all the group divisions."

The group reported net assets of £2.8m, compared with net liabilities of £1.7m in December, while debt halved to £2.3m by the end of the period.