Manganese Bronze looks beyond revenue slump to new model hopes

COVENTRY cab manufacturer Manganese Bronze saw a dip in revenues and a hike in net debt last year but remains confident about the future following a large order from Eastern Europe and a new model.

Revenues at the London taxi manufacturer fell year-on-year from £73.1m to £69.6m for the 12 months ended December 31, 2010.

Operating loss dropped from £7m to £1.9m before exceptional items while loss before tax also fell slightly from £1.1m to £900,000.

Nebt debt rose from £5.1m in 2009 to £14.4m. The results said international sales volumes were up 8.1% to 226 vehicles and the increase in London market share went from 75% to 82% following the launch of the new TX4 model range.

The statement said the firm had a “substantial international sales order book of 1,250 vehicles” which included an order for 1,000 London taxis from Republic of Azerbaijan.

In January, the company again denied rumours of a takeover by its Chinese partner Geely following an extension of  a credit agreement.

Group chief executive John Russell said: “2010 was another difficult year for our UK taxi manufacturing operation.

“However, the actions taken to return the group to profitability have now been completed, culminating with the successful launch of the new TX4 model range and the rebranding of the manufacturing and dealer facilities as The London Taxi Company.

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“Our relationship with Geely is crucial to the group’s long term success, and it has been further strengthened by the appointment of George Zhao and Frank Cao to the MBH board.

“The order for 1,000 London taxis from the Republic of Azerbaijan through Shanghai LTI, that was signed earlier this month, demonstrates its potential.

“The board is confident that, with the extension of credit terms from Geely, the continued support of the group’s bankers and the improvement in operating margins delivered by restructuring, the group is well positioned to return to profitability in 2011 and make further progress with joint initiatives with Geely.”