Manganese Bronze warns sales down

Taxi maker Manganese Bronze has warned that sales in the first few months of this year are considerably down compared with last year.

The manufacturer of the distinctive London taxi is often seen as an indicator of the City’s economy. The company admitted that its cab sales are usually the victim of any uncertainty in London’s financial markets and said sales in the first quarter are below last year due to this uncertainty.

Mark Fryer, the company’s finance director, said this year we have seen some exceptional volatility. Sales in the first two months of 2008 were poor but this may have been because customers were holding off for the new registrations as March was a near-record month. However, this month is not looking so good again.

The company announced strong results for last year and experienced sales in the year of 3100 cabs, second only to its best year of 2000 when disabled access was made compulsory for new models.

The launch of its latest model, the TX4, saw Manganese’s profits in the 17 months to 31 December of £5 million and dividends in the period totalling 7.25p, up 20% from the previous 12-month reporting period. The TX4 is powered by a VM R 425 DOHC diesel engine and features many refinements and enhancements.

Chief Executive, John Russell, said Manganese Bronze was delighted with its improving profitability and a significant increase in operating cash flow resulting from the success of the TX4 and the substantial progress the company had made with its joint venture in Shanghai.

Mr Russell added that the company’s main focus in 2008 is on maintaining and increasing the momentum of the TX4 in the UK whilst investing in primarily environmentally led product initiatives, putting the TX4 into production in Shanghai and achieving the challenging cost, quality, and timing objectives that we have set, creating the sales and marketing infrastructure to realise the international sales opportunities for TX4 and realising our vision to make the London Taxi a successful global icon.

Manganese Bronze plans to produce 20,000 cabs a year in Shanghai, half for the domestic market and half for export to the US, Thailand and Nigeria.

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