Manganese Bronze struggles at home but foreign sales rise
BLACK cab manufacturer Manganese Bronze Holdings has blamed the uncertain economy for an 8.6% fall in the sale of its vehicles in the UK during the quarter ended September 30.
The Coventry firm said it sold 426 cabs in the period (2010: 466), meaning sales for the year stood at 1,174, a 7.5% drop on last year, when it sold 1,269 vehicles.
In a trading update covering the period from July 1 to October 18, 2011, the firm said UK sales for this month were following a similar trend.
“UK sales for the second half of 2011 are therefore likely to be marginally down on the first half, but broadly in line with the risk to expectations identified in July 2011,” it said.
“Whilst UK sales volumes have been below forecast, margins have been maintained at expected levels, and the group’s share of the London market for the quarter ended September 30, 2011 increased from 79% to 81%.”
There was better news for its international sales, which were up 178% in the quarter at 217 vehicles (2010: 78 vehicles), bringing the year to date sales to 691 vehicles (2010: 190 vehicles).
The year to date figures include half of the 1,000 cabs ordered by the authorities in Azerbaijan. The remaining 500 are due for delivery in the last quarter of the year.
The firm said orders for 2011 – at 1,329 – were well ahead of the target of 1,000 units set at the start of the year, but broadly in line with expectations.
“Given the underlying improvements in operations and the anticipated favourable impact on London vehicle sales associated with the 15 year age restriction of the London fleet, which will take effect from January 1, 2012, the board is confident that the group can make further financial and strategic progress in 2012,” it said.
MBH said its relationship with its Chinese joint venture partner Geely Automobile Holdings continued to be very positive and good progress was being made on developing and agreeing a business plan covering all aspects of the potential launch of Geely products in the UK, together with launch plans for the TXN, the saloon-car based taxi scheduled for introduction in 2014.
MBH has also announced the appointment of Grant Thornton UK as its Nominated Adviser with immediate effect.
