Manganese Bronze Share Discussion Threads

[glasgow13] 08/10/2004 22:35

Jim thanks.

[jim digriz] 06/10/2004 23:20

Glasgow13... there's some info for drivers at www.zingodriver.com, includes prices.

I sold out at 180p and am staying out for now but watching with some interest.

IMHO DYOR BYOB

Jim diGriz

[glasgow13] 06/10/2004 22:58

anyone know how much it costs the taxi-driver for zingo?

[ariane] 06/10/2004 16:58

Long fare for Manganese Bronze
Published: 15:33 Wed 6 Oct 2004
By Douglas Bence, Companies Correspondent
Email to a friend | Printable Version

London taxi maker Manganese Bronze is taking a longer journey than any cab driver could ever get.

It's taking the famous black cab design to production lines in Mexico and China.


This explains why a number of institutional shareholders, including Martin Hughes with around 16%, seem to be looking on the company as a major recovery stock.


Hughes had a major success with Hornby and he along with others picked up the 37% stake in Manganese Bronze sold by Rutland Investments who had a long association with the company.


Manganese Bronze has had its problems. Industrial disputes damaged its 55-cab week production line for a while, there have been warranty costs from problems on the emission systems used by the TX range launched seven years ago, and possible regulation changes may open up its market to competition from cabs that look like vans.


If the emission rules change, up to 17,000 of London's 20,000 cabs may need to be modified over a three-year period.


All this has made cab owners even more cautious than usual and delayed the decision to buy new vehicles, running them into the ground for just another year, explained chief executive Ian Pickering.


But the biggest problem of all is Zingo, Manganese Bronze's scheme where people call a cab on a single number from their mobile phones. It lost £4 million this year and £3 million last. Zingo has gobbled up around £13 million so far and the company has made a special impairment provision of £2.6 million.


Zingo works, but it needs more cabs than the 1,100 it has so far signed up. With the drivers it has got it can only satisfy 38% of all the calls it gets.

Sales rose 1% to £86.7 million in the year to 31 July against £86 million last time. Losses before tax came down to £1.2 million from £10.2 million in 2003. The dividend is unchanged at 2p.


Taxi sales in the UK during the year were 2,271, a marginal increase over 2003's 2,253 vehicles. Just over half were in London. Manganese Bronze (MNGS) shares fell 3p to 160.5.


Earnings from Mexico should start coming through in 2006 with China the year after, added Pickering.

[toffeeman] 06/10/2004 10:47

Spread is v narrow so its going to widen!

feeling comfortably short.

[ariane] 06/10/2004 10:44

(Updates to add details on Zingo, clarify that Condition of Fitness is also
a PCO initiative, and add information on sales abroad)
LONDON (AFX) - Manganese Bronze Holdings PLC, which manufactures the London
black taxi and operates the mobile phone taxi hailing service Zingo, said its
full year pretax loss was "significantly reduced" thanks to a 4.7 mln stg
property sale and a 7.5 pct rise in taxi sales.
The group posted a pretax loss for the year ended July of 1.2 mln stg
against a 10.2 mln stg loss a year ago. Turnover for the period rose 1 pct to
86.7 mln stg and the group maintained its final dividend of 2 pence per share.
Chairman Tim Melville-Ross, however, gave a cautious outlook, saying the
Public Carriage Office's second review of the Conditions of Fitness and its
proposed emission regulations for taxis is causing drivers to delay purchasing
new vehicles.
"The resolution of these two issues will have a significant effect on the
group's result for the financial year ending 31 July 2005. The overall result
will also depend on when we are able to eliminate the losses being incurred by
Zingo," he said.
The service, which currently receives more than twice as many calls as it is
able to fulfil -- a result of slow driver take-up -- is currently under review,
the chairman said.
"We are actively seeking ways of working with other organisations in the
London taxi trade to grow the Zingo fleet," he said.
Melville-Ross said the company will also be putting forward a resolution at
an AGM later this year, to give directors the option to buy or cancel shares in
the company and to improve returns for shareholders.
The group also expects shareholder values will be strengthened in the
current year by concrete progress in overseas taxi projects, where sales more
than tripled in the year to July.
[e-mail]
ma/ab

[grupo] 06/10/2004 09:20

i like it that way alun

[grupo] 06/10/2004 09:19

i like it that way alun

[alunmorris] 06/10/2004 08:57

Doesn't it break up the flow of discussion to have 100s of lines of RNS posted?

It's easy enough to read the RNS directly.

Alun

[grupo] 06/10/2004 08:45

RNS Number:7591D
Manganese Bronze Hldgs PLC
06 October 2004

6th October 2004



MANGANESE BRONZE HOLDINGS PLC

PRELIMINARY RESULTS


Manganese Bronze Holdings PLC, the speciality automotive and taxi services
group, announces its preliminary results for the year to 31 July 2004.



Financial headlines


* Turnover from continuing operations up 1% to #86.7million (2003: #86.0
million)

* Significantly reduced loss before taxation of #1.2 million (2003:
#10.2 million loss)

* Core vehicles division produced #4.3m operating profit

* Zingo losses increased to #4.1 million (2003: #3.3 million) despite
rationalisation measures - impairment provision of #2.6 million taken

* Head Office costs sharply reduced by 49% to #1.3 million

* Net cash inflow from operating activities of #1.4 million

* Holloway Road property sold for #7.9 million in March, larger long
leasehold premises in Brewery Road, Islington acquired for #4.6 million

* Recommended final dividend for the year of 2p (2003: 2p)

* Net debt at a comfortable #1.7 million (2003: #1.7 million net funds)
with dividends of #5.0 million (2003: #0.2 million) paid in the year



Operational highlights


* Taxi sales increased by 7.5% to 2,494 vehicles (2003: 2,320)

* International sales up to 223 vehicles (2003: 67) - 168 taxis sold to
US (2003: 26)

* Zingo - a technological success though fleet size too small to meet strong
consumer demand - working with other organisations in the London taxi
trade to increase fleet size

* Letter of intent signed with China National Bluestar (Group) Corporation
and Provincial Government of Lanzhou - project proposal for joint venture
manufacturing submitted to Chinese government

* License and distribution agreement for Mexico and Central America signed
in March


Tim Melville-Ross, Chairman, said;

"It has been a year of progress for Manganese Bronze, with our loss before
taxation significantly reduced. Our core black taxi business increased sales at
home and abroad. We have signed a letter of intent with China Bluestar and are
making steady progress in securing approval for our manufacturing joint venture.

"Zingo has achieved faster customer acceptance than driver take-up - we receive
more than twice as many calls as we are able to fulfil. We are actively seeking
ways of working with other organisations in the London taxi trade to grow the
Zingo fleet."


For further information please contact:


Manganese Bronze Holdings PLC
Ian Pickering, Chief Executive 01908 540 080
Mark Fryer, Group Finance Director 02476 572 223

Financial Dynamics

Jon Simmons 020 7831 3113




CHAIRMAN'S STATEMENT

Summary

The Group incurred a much reduced loss before tax for the year ended 31 July
2004 of #1.2 million compared to the #10.2 million loss the previous year. The
result includes the net gain on the sale of two of the Group's properties of
#4.7 million partially offset by an impairment provision against the carrying
value of Zingo's fixed assets of #2.6 million.

Taxi sales for the year were 2,494, an increase of 7.5% over the prior year. In
September 2003 the Public Carriage Office (PCO) announced that it was to
undertake a second limited review of the London Conditions of Fitness. The
results of this second review have been delayed and are now not expected to be
announced until December of this year.

The successful growth of Zingo in the first half of the year has not been
repeated in the second half and the business has remained loss making despite
the re-organisation announced in March.


Strategy

Good progress has been made in implementing the Group's strategy of controlled
international expansion with the signing of a letter of intent with China
National Bluestar (Group) Corporation and the Municipal Government of Lanzhou
for China and a license agreement with London Taxi Mexico LLC covering Mexico
and Central America.

We are actively seeking ways of working with other organisations in the London
taxi trade to grow the Zingo fleet. This would allow us to satisfy the many
customers who call Zingo but for whom a taxi may not be available. The Board is
actively considering all options to halt the monthly losses being incurred by
Zingo, but in light of the ongoing losses believes that it is appropriate to
make the impairment provision referred to above.


Returns to Shareholders

In March of this year, Rutland Investments Limited sold its 37% shareholding in
the Company ending a long association with the company. Following on from this
and the share placing in November 2003, we now have a number of new significant
institutional shareholders.

A resolution will be put to the Annual General Meeting (AGM) to give the
Directors the authority to buy, and subsequently cancel, shares in the Company
to give the Board greater flexibility in improving returns for shareholders.

The Board is recommending the payment of a final dividend of 2p per share making
a total for the year of 3p per share which, if approved, will be paid on 1
December 2004 to members on the register on 5 November 2004.


Board

At our AGM, on 24 November 2004, three of the members of the Board will be
seeking election or re-election as Directors of the Company. Mark Fryer retires
by rotation in accordance with the Company's Articles and Ian Pickering is
required to stand for election to the Board following his re-appointment as
Chief Executive by the Board after last year's AGM.

Christopher Ross, the Deputy Chairman, has been a non-executive director of the
Group for nine years and retires by rotation. The revised Combined Code (2003
FRC code) considers directors who have served for nine or more years as not
independent. All of the other Directors of the Company view Christopher Ross as
independent, and believe he offers valuable industry experience to the Board.
The Directors recommend that shareholders vote in favour of his re-election at
the AGM.


Prospects

The uncertainty created for taxi drivers in London by the second limited review
of the Conditions of Fitness and the potential impact of the PCO's proposed
emission regulations for taxis is causing drivers to delay purchases of new
vehicles in what are otherwise more favourable conditions. The resolution of
these two issues will have a significant effect on the Group's result for the
financial year ending 31 July 2005. The overall result for the year will also
depend on when we are able to eliminate the losses being incurred by Zingo.

We expect to make concrete progress with our overseas taxi projects during the
course of the current financial year and remain confident that our strategy will
deliver real value for all shareholders.


Tim Melville-Ross
Chairman



CHIEF EXECUTIVE'S REVIEW OF OPERATIONS

United Kingdom Taxi Market

Taxi sales in the UK during the year were 2,271, a marginal increase over 2003
when we sold 2,253 vehicles. Just over half of these sales (55%) were in London.
Whilst there has been an increase in the number of taxi journeys in London over
the last twelve months, drivers have delayed purchasing new vehicles for a
number of reasons; lingering concerns over the reliability of the new TXII
model; the possibility of changes to the London Conditions of Fitness; and the
potential impact of proposals for tighter emissions controls on London's taxis.

A number of teething problems were experienced when the TXII was introduced in
January 2002. These problems were quickly rectified during 2002 although it has
taken some time for the new model to gain the reputation for reliability enjoyed
by the TX1.

The PCO announced in September 2003 that it would undertake a second limited
review of the London Conditions of Fitness. This followed an application for a
judicial review of the results of the first review, which had been announced in
June 2003. The outcome of the second review is expected to be announced in
December of this year after more detailed studies, particularly into the turning
circle requirement. We believe that the new review will confirm that the
existing regulations best suit the conditions experienced by London taxis.

The PCO has also circulated draft proposals for tighter emissions controls for
London's taxis. In their initial form they would have required approximately
17,000 taxis to be modified or replaced over the next three years. We anticipate
that the proposals will be refined before they are promulgated, and may lead to
an increase in sales in London in the coming years.

Our sales in the regions were unchanged from last year.


Overseas Activities


US

The initial shipment of 26 taxis to the US was completed in July 2003 following
which a further 168 vehicles have been sold to our US distributor, London Taxis
North America (LTNA), in 2004. Sales to the US reduced in the second half of the
year due to the strengthening of the pound against the dollar. Further sales to
the US from the start of the next calendar year will require further engineering
developments to make the vehicle comply with new US emission regulations. LTNA
recently agreed a $4.7 million financing partly to fund the engine development
program. As part of this, LTI has taken a 10.2% stake in LTNA. The taxi has
generated a lot of interest in the US, which over time could become one of our
largest markets.


China

We signed a letter of intent in February of this year with China National
Bluestar (Group) Corporation and the Provincial Government of Lanzhou for the
creation of a joint venture company to manufacture taxis in Lanzhou, the capital
city of China's Gansu province. The three parties have jointly submitted a
project proposal for the creation of the joint venture to the Chinese government
to enable the joint venture company to manufacture taxis under the provisions of
the new Chinese automotive policy.


Mexico

We signed a license and distribution agreement in February of this year for
Mexico and Central America. We have been working with the licensee since that
time to identify suitable manufacturing locations and product specifications.


Manufacturing

We maintained production volumes of 55 taxis per week throughout most of the
year, although the rate was increased temporarily in May to 71 taxis per week
following industrial action at the factory earlier in the year. Production has
now returned to 55 per week.

The cost of warranty claims increased significantly in the year, particularly in
relation to the second and third year warranty on the first few months'
production of the new TXII model. We have accordingly increased the warranty
provision held at the end of the year to #3.4 million compared to #2.5 million
at the beginning of the year.

The agreement reached in July last year, for the sale and leaseback of the
Coventry taxi factory, required us to vacate a 30,000 square foot building which
had previously been used for stores and product development. The move has
resulted in a more efficient layout of the remaining factory area with no
disruption to production.

Product development expenditure was again low during the year with no major
product developments launched. This lower level of expenditure will continue
until we begin the development programme to comply with the Euro IV emission
regulations, which come into effect in January 2007.


Retail and Service Activities

In March, we sold the freehold of the site occupied by our Mann & Overton (M&O)
London taxi dealership and simultaneously secured a lease for new premises
nearby. We will be able to move into the new premises in 2006, when the current
occupier's lease terminates. (Until then, we have entered into a lease of the
existing site from the new owner of the freehold). The new premises provide
increased showroom, service and parking space and will allow us to expand M&O's
London operations.

We reduced the scale of our retail operation in Bristol during the year. The M&O
dealership in the city was closed and replaced by a smaller sales office,
supported by M&O Birmingham. We sold the freehold in the Bristol dealership at
the end of the year.

The M&O dealerships' financial performance improved significantly from the
previous year, particularly in London, although both the Bristol and Birmingham
dealerships incurred losses. It is expected that the new combined operation will
trade profitably.

Our spare parts operation, which is managed by Unipart, had another good year
and achieved improved operating profits.

The contribution to the Group's taxi profits from our finance activities fell
during the year due principally to a reduction in finance business from our
independent London dealership.


Zingo

The Zingo mobile phone taxi hailing service was launched in April 2003 and grew
strongly up to December 2003. Following the Christmas and New Year holiday
period the growth in driver recruitment, and as a result, journey volumes,
slowed. Consequently, we consolidated the cost base of the Zingo operation and
our finance business in March to achieve a reduction of about half of the Zingo
monthly operating expenditure. This action by itself has been insufficient to
eliminate the monthly losses and Zingo is again expected to be loss making in
the financial year ending 31 July 2005.

The Board has therefore decided that it is appropriate to make an impairment
provision against the assets of Zingo of #2.6 million.

The Zingo system has proven itself to be technically robust and well liked by
passengers. We regularly have over twice as many hail requests than we can
fulfil. The limitation to growth in usage of the system, and therefore to
profitable operations, is the number of drivers who have joined Zingo. We will
again increase our efforts to recruit drivers during the autumn, including
continuing discussions with the existing radio circuits to use their drivers. We
have had a number of discussions with organisations which wish to license the
Zingo system for use in cities abroad, which, if successful, will generate a new
source of revenue.


Electric Delivery Vehicle and Hybrid Taxi

During the year we successfully completed two prototype electric delivery
vehicles. We recently agreed the sale of this project for a small profit to book
value. This project has increased our understanding of alternative powertrains,
which we expect to be an important feature of our business in the future.

We have also jointly developed with Azure Dynamics a series hybrid taxi
demonstrator which will form the foundation of our future low emission vehicle
strategy.


Head office

Following the simplification of the Group's activities as a result of the sale
of the Components Division last year, we closed the Group's head office in
London in December 2003, and relocated the activities to Coventry and Milton
Keynes. As a result of this and other cost savings we have reduced our central
costs from #2.7 million to #1.3 million.


Summary

After the major restructuring carried out last year, we have made further
progress towards achieving our long term goals. Our priorities in the coming
year will be to reverse the losses being incurred by Zingo, to secure approval
for the Chinese taxi joint venture, and to see taxi production begin in Mexico,
while continuing to improve the service we provide to our existing customers. We
have further strengthened our balance sheet and reduced our pension deficit, and
are well placed to meet the challenges that lie ahead.


Ian Pickering
Chief Executive




FINANCE DIRECTOR'S REVIEW


Profit and loss account

The loss before taxation for year ended 31 July 2004 of #1.2 million is a
significant improvement on the 2003 loss of #10.2 million, and includes an
impairment provision on the Zingo fixed assets of #2.6m. Last year did, however,
include net exceptional costs of #5.7 million (#7.5 million loss on the sale of
the Components Division and #1.8 million profit on the disposal of the Coventry
property) whilst this year's result include a net exceptional income of
#4.1million, including a profit of #4.7 million from the sale of our Holloway
Road, London property.

Overall taxi volumes increased from 2,320 last year to 2,494 with both UK and
overseas sales rising. Overseas sales were up by 233% to 223 vehicles, of which
the US was our largest overseas market with 168 vehicles. Group turnover of
#86.7 million was 1% up on last year, after excluding discontinued operations.

Vehicles operating profit of #4.3 million was slightly lower than the #4.5
million achieved in 2003, which included #1.1 million profit from the China
Brilliance settlement.

Zingo losses widened to #4.1 million (2003 #3.3 million) including #0.7 million
of marketing and advertising expenditure (2003 #0.7 million). In view of these
continuing losses, the directors have decided to make an impairment provision
against the carrying value of Zingo of #2.6 million.

Head Office costs were sharply reduced by 49% to #1.3 million (2003 #2.7
million) following the closure of the London head office, cost saving measures
and property rental income of #0.3 million (2003 nil).

Contributions of #1.3 million (2003 #2.4 million, including an additional #1.0
million following the sale of the Components Division) were made to the defined
benefit scheme, (which was closed in 1995) but expensed in line with SSAP 24. As
the UK Accounting Standards Board has delayed the compulsory implementation of
FRS17 until 2005, the Group has not applied it.

The total depreciation charge was #4.6 million (2003 #5.5 million) including
#1.0 million of depreciation for Zingo.

Exceptional costs of #0.6 million have been charged in the current year
associated with the sale of the Component Division, which took place at the end
of the previous year.


Balance Sheet

The group has net assets of #22.8 million (2003 #22.6 million) and group debt of
#1.7 million (2003 net cash #1.7 million) with dividends of #5.0 million (2003
#0.2 million) paid in the year.

The total group debt is represented by cash at bank of #6.4 million (2003 #8.7
million), less the stocking loan for finished vehicles of #7.4 million (2003
#6.7 million) and finance leases of #0.7 million (2003 #0.4 million). The Group
has a #3.0 million overdraft facility for which there is no current use.

#1.1 million of development costs associated with the electric delivery vehicle
(project Mercury) have been capitalised as an intangible asset, with associated
grant receipts from the Energy Savings Trust of #0.5 million held within
creditors as deferred income.

Warranty costs have increased during the year, leading to an increase in our
warranty provision to #3.4 million (2003 #2.5 million).


Cash flow

Net cash inflow from operating activities is #1.4 million (2003 excluding
discontinued operations #0.7 million).

With proceeds from the sale of Holloway Road, London (see below) exceeding the
cost of the purchase of the lease on Brewery Road, London, other capital
investments, and the project Mercury development costs, there was a net cash
inflow from capital expenditure of #0.9m (2003 #4.4m).

Total cash outflow before financing for the year of #3.5 million (2003 #11.2
million inflow) is largely the result of dividend payments to shareholders of
#5.0 million (2003 #0.2 million).

With #1.2 million cash inflow from financing (2003 #4.9 million outflow),
largely from a share placing, total cash flow decreased by #2.3 million (2003
#6.3 million increase).


Property

The Group sold its Holloway Road property for #7.9 million during the year and
acquired a larger replacement long leasehold premise in Brewery Road, near Kings
Cross for #4.6 million. This has been capitalised and is being written off over
50 years in accordance with surveyor advice.

The Group has retained interests in two investment properties from the sale of
the Components Division in the previous year - Montgomery Street, Birmingham
(book value #1.0 million) and Hadleigh Road, Ipswich (book value #2.8 million),
which are let to the buyers of the Components Division. Notice has been given on
both of these properties under the terms of the leases with occupation ending in
August 2005.


Pensions

The Group has two principal pension schemes, a defined benefit scheme, which was
closed in 1995, and a defined contribution scheme. An actuarial valuation of
the defined benefit scheme has been carried out in accordance with the
requirements of FRS17. This indicates a deficit of #6.4 million at 31 July 2004
(2003 #10.0 million). The principal changes in the deficit are cash
contributions by the Group totalling #1.3 million and a #2.4 million benefit
from the SERPS buyback exercise undertaken during the year.

In accordance with Minimum Funding Requirement (MFR) regulations, a schedule of
contributions to make good the deficit has been agreed with the trustees. This
involves contributions of around #1.2 million per annum, which is a higher level
than required by MFR regulations, in order that the deficit may be further
reduced.


International Financial Reporting Standards

The Group is required under European legislation to adopt International
Financial Reporting Standards (IFRS) in accounting periods beginning on or after
1 January 2005. The Group is developing a transition plan to manage the
conversion to IFRS, which will first apply to the Group's financial statements
for the year ended 31 July 2006.


Mark Fryer
Group Finance Director



CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the year ended 31 July 2004

Before Exceptional Total As restated Discontinued As restated
exceptional items (notes 2004 continuing operations Total
items 1d, 1e & 1f) #000 operations 2003 2003
2004 2004 2003 #000 #000
#000 #000 #000

Notes
Turnover 1 86,712 - 86,712 86,031 27,228 113,259

Cost of sales (73,278) - (73,278) (72,856) (22,820) (95,676)

Gross profit 13,434 - 13,434 13,175 4,408 17,583

Operating expenses 1(d) (14,549) (2,585) (17,134) (14,808) (5,619) (20,427)
Pension contributions to
closed scheme (1,325) - (1,325) (2,375) - (2,375)
Exceptional income - - - 956 - 956
Other operating income - - - 83 206 289

Net operating expenses (15,874) (2,585) (18,459) (16,144) (5,413) (21,557)

Operating loss (2,440) (2,585) (5,025) (2,969) (1,005) (3,974)

Profit on sale of fixed assets 1(e) - 4,659 4,659 1,857
(continuing operations)
Loss on disposal of 1(f) - (559) (559) (7,524)
discontinued operations

(Loss)/profit on ordinary
activities before finance
charges (2,440) 1,515 (925) (9,641)

Finance charges - net (249) - (249) (516)

(Loss)/profit on ordinary (2,689) 1,515 (1,174) (10,157)
activities before taxation

Tax credit on loss on ordinary
activities 550 147 697 2,033
Tax credit on exceptional items - 168 168 -

Total tax credit 2 550 315 865 2,033

(Loss)/profit on ordinary activities
after taxation for the financial
year (2,139) 1,830 (309) (8,124)

Dividends (including
non-equity dividends) 3 (620) - (620) (4,863)

Transferred (from)/to reserves 7 (2,759) 1,830 (929) (12,987)

Basic loss per ordinary share 4 (1.96) p (45.92)p

Diluted loss per ordinary share 4 (1.96) p (45.92)p



Dividends:

Preference dividend paid 53 56
Special ordinary dividend paid
- nil p per share (2003 25p) - 4,453
Interim ordinary dividend paid
- 1p per share (2003 nil p) 189 -
Final dividend payable -
proposed 2p per share (2003 2p) 378 354

Total dividends 620 4,863


All activities in the current year arise from continuing operations with the
exception of the loss on disposal of #559,000 in relation to the previous
financial year (note 1(f)).


Historical cost profits and losses

On an historical cost basis, the loss on ordinary activities before taxation and
the retained loss after taxation and dividends would have reduced by #634k (2003
#6.7m), #708k (2003 #6.5m) due to the realisation of property revaluation gains
of previous years, less #74k (2003 plus #176k) due to the difference between the
historical cost depreciation charge and the actual charge calculated on the
revalued amount.




CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
for the year ended 31 July 2004
Notes 2004 As restated
#000 2003
#000

Loss for the financial year (309) (8,124)
Unrealised net deficit on revaluation of properties (110) (109)
Currency translation differences - (6)

Total recognised losses relating to the year (419) (8,239)

Prior year adjustment 6 285

Total loss recognised since the last annual report
and financial statements (134)





CONSOLIDATED BALANCE SHEET
at 31 July 2004
2004 2004 As restated As restated
#000 #000 2003 2003
Notes #000 #000

Fixed assets

Intangible assets - development costs 1,137 -
Tangible assets 19,829 23,339

20,966 23,339

Current assets

Stocks 15,987 15,419
Debtors 5,996 5,702
Cash at bank and in hand 6,399 8,726

28,382 29,847
Creditors Amounts falling due within one year (22,932) (27,638)

Net current assets 5,450 2,209


Total assets less current liabilities 26,416 25,548
Creditors Amounts falling due after more than one year (199) (42)
Provisions for liabilities and charges (3,399) (2,948)

Net assets 22,818 22,558


Capital and reserves

Called up share capital 5,371 5,179
Share premium account 4,700 3,593
Capital redemption reserve 916 916
Revaluation reserve 1,860 2,429
Employee Share Ownership Plan (ESOP) Reserve (500) (500)
Profit and loss account 10,471 10,941

Shareholders' funds including non-equity interests 7 22,818 22,558


Net assets per ordinary share 117.2p 121.7p

[grupo] 06/10/2004 08:45

RNS Number:7591D
Manganese Bronze Hldgs PLC
06 October 2004

6th October 2004



MANGANESE BRONZE HOLDINGS PLC

PRELIMINARY RESULTS


Manganese Bronze Holdings PLC, the speciality automotive and taxi services
group, announces its preliminary results for the year to 31 July 2004.



Financial headlines


* Turnover from continuing operations up 1% to #86.7million (2003: #86.0
million)

* Significantly reduced loss before taxation of #1.2 million (2003:
#10.2 million loss)

* Core vehicles division produced #4.3m operating profit

* Zingo losses increased to #4.1 million (2003: #3.3 million) despite
rationalisation measures - impairment provision of #2.6 million taken

* Head Office costs sharply reduced by 49% to #1.3 million

* Net cash inflow from operating activities of #1.4 million

* Holloway Road property sold for #7.9 million in March, larger long
leasehold premises in Brewery Road, Islington acquired for #4.6 million

* Recommended final dividend for the year of 2p (2003: 2p)

* Net debt at a comfortable #1.7 million (2003: #1.7 million net funds)
with dividends of #5.0 million (2003: #0.2 million) paid in the year



Operational highlights


* Taxi sales increased by 7.5% to 2,494 vehicles (2003: 2,320)

* International sales up to 223 vehicles (2003: 67) - 168 taxis sold to
US (2003: 26)

* Zingo - a technological success though fleet size too small to meet strong
consumer demand - working with other organisations in the London taxi
trade to increase fleet size

* Letter of intent signed with China National Bluestar (Group) Corporation
and Provincial Government of Lanzhou - project proposal for joint venture
manufacturing submitted to Chinese government

* License and distribution agreement for Mexico and Central America signed
in March


Tim Melville-Ross, Chairman, said;

"It has been a year of progress for Manganese Bronze, with our loss before
taxation significantly reduced. Our core black taxi business increased sales at
home and abroad. We have signed a letter of intent with China Bluestar and are
making steady progress in securing approval for our manufacturing joint venture.

"Zingo has achieved faster customer acceptance than driver take-up - we receive
more than twice as many calls as we are able to fulfil. We are actively seeking
ways of working with other organisations in the London taxi trade to grow the
Zingo fleet."


For further information please contact:


Manganese Bronze Holdings PLC
Ian Pickering, Chief Executive 01908 540 080
Mark Fryer, Group Finance Director 02476 572 223

Financial Dynamics

Jon Simmons 020 7831 3113




CHAIRMAN'S STATEMENT

Summary

The Group incurred a much reduced loss before tax for the year ended 31 July
2004 of #1.2 million compared to the #10.2 million loss the previous year. The
result includes the net gain on the sale of two of the Group's properties of
#4.7 million partially offset by an impairment provision against the carrying
value of Zingo's fixed assets of #2.6 million.

Taxi sales for the year were 2,494, an increase of 7.5% over the prior year. In
September 2003 the Public Carriage Office (PCO) announced that it was to
undertake a second limited review of the London Conditions of Fitness. The
results of this second review have been delayed and are now not expected to be
announced until December of this year.

The successful growth of Zingo in the first half of the year has not been
repeated in the second half and the business has remained loss making despite
the re-organisation announced in March.


Strategy

Good progress has been made in implementing the Group's strategy of controlled
international expansion with the signing of a letter of intent with China
National Bluestar (Group) Corporation and the Municipal Government of Lanzhou
for China and a license agreement with London Taxi Mexico LLC covering Mexico
and Central America.

We are actively seeking ways of working with other organisations in the London
taxi trade to grow the Zingo fleet. This would allow us to satisfy the many
customers who call Zingo but for whom a taxi may not be available. The Board is
actively considering all options to halt the monthly losses being incurred by
Zingo, but in light of the ongoing losses believes that it is appropriate to
make the impairment provision referred to above.


Returns to Shareholders

In March of this year, Rutland Investments Limited sold its 37% shareholding in
the Company ending a long association with the company. Following on from this
and the share placing in November 2003, we now have a number of new significant
institutional shareholders.

A resolution will be put to the Annual General Meeting (AGM) to give the
Directors the authority to buy, and subsequently cancel, shares in the Company
to give the Board greater flexibility in improving returns for shareholders.

The Board is recommending the payment of a final dividend of 2p per share making
a total for the year of 3p per share which, if approved, will be paid on 1
December 2004 to members on the register on 5 November 2004.


Board

At our AGM, on 24 November 2004, three of the members of the Board will be
seeking election or re-election as Directors of the Company. Mark Fryer retires
by rotation in accordance with the Company's Articles and Ian Pickering is
required to stand for election to the Board following his re-appointment as
Chief Executive by the Board after last year's AGM.

Christopher Ross, the Deputy Chairman, has been a non-executive director of the
Group for nine years and retires by rotation. The revised Combined Code (2003
FRC code) considers directors who have served for nine or more years as not
independent. All of the other Directors of the Company view Christopher Ross as
independent, and believe he offers valuable industry experience to the Board.
The Directors recommend that shareholders vote in favour of his re-election at
the AGM.


Prospects

The uncertainty created for taxi drivers in London by the second limited review
of the Conditions of Fitness and the potential impact of the PCO's proposed
emission regulations for taxis is causing drivers to delay purchases of new
vehicles in what are otherwise more favourable conditions. The resolution of
these two issues will have a significant effect on the Group's result for the
financial year ending 31 July 2005. The overall result for the year will also
depend on when we are able to eliminate the losses being incurred by Zingo.

We expect to make concrete progress with our overseas taxi projects during the
course of the current financial year and remain confident that our strategy will
deliver real value for all shareholders.


Tim Melville-Ross
Chairman



CHIEF EXECUTIVE'S REVIEW OF OPERATIONS

United Kingdom Taxi Market

Taxi sales in the UK during the year were 2,271, a marginal increase over 2003
when we sold 2,253 vehicles. Just over half of these sales (55%) were in London.
Whilst there has been an increase in the number of taxi journeys in London over
the last twelve months, drivers have delayed purchasing new vehicles for a
number of reasons; lingering concerns over the reliability of the new TXII
model; the possibility of changes to the London Conditions of Fitness; and the
potential impact of proposals for tighter emissions controls on London's taxis.

A number of teething problems were experienced when the TXII was introduced in
January 2002. These problems were quickly rectified during 2002 although it has
taken some time for the new model to gain the reputation for reliability enjoyed
by the TX1.

The PCO announced in September 2003 that it would undertake a second limited
review of the London Conditions of Fitness. This followed an application for a
judicial review of the results of the first review, which had been announced in
June 2003. The outcome of the second review is expected to be announced in
December of this year after more detailed studies, particularly into the turning
circle requirement. We believe that the new review will confirm that the
existing regulations best suit the conditions experienced by London taxis.

The PCO has also circulated draft proposals for tighter emissions controls for
London's taxis. In their initial form they would have required approximately
17,000 taxis to be modified or replaced over the next three years. We anticipate
that the proposals will be refined before they are promulgated, and may lead to
an increase in sales in London in the coming years.

Our sales in the regions were unchanged from last year.


Overseas Activities


US

The initial shipment of 26 taxis to the US was completed in July 2003 following
which a further 168 vehicles have been sold to our US distributor, London Taxis
North America (LTNA), in 2004. Sales to the US reduced in the second half of the
year due to the strengthening of the pound against the dollar. Further sales to
the US from the start of the next calendar year will require further engineering
developments to make the vehicle comply with new US emission regulations. LTNA
recently agreed a $4.7 million financing partly to fund the engine development
program. As part of this, LTI has taken a 10.2% stake in LTNA. The taxi has
generated a lot of interest in the US, which over time could become one of our
largest markets.


China

We signed a letter of intent in February of this year with China National
Bluestar (Group) Corporation and the Provincial Government of Lanzhou for the
creation of a joint venture company to manufacture taxis in Lanzhou, the capital
city of China's Gansu province. The three parties have jointly submitted a
project proposal for the creation of the joint venture to the Chinese government
to enable the joint venture company to manufacture taxis under the provisions of
the new Chinese automotive policy.


Mexico

We signed a license and distribution agreement in February of this year for
Mexico and Central America. We have been working with the licensee since that
time to identify suitable manufacturing locations and product specifications.


Manufacturing

We maintained production volumes of 55 taxis per week throughout most of the
year, although the rate was increased temporarily in May to 71 taxis per week
following industrial action at the factory earlier in the year. Production has
now returned to 55 per week.

The cost of warranty claims increased significantly in the year, particularly in
relation to the second and third year warranty on the first few months'
production of the new TXII model. We have accordingly increased the warranty
provision held at the end of the year to #3.4 million compared to #2.5 million
at the beginning of the year.

The agreement reached in July last year, for the sale and leaseback of the
Coventry taxi factory, required us to vacate a 30,000 square foot building which
had previously been used for stores and product development. The move has
resulted in a more efficient layout of the remaining factory area with no
disruption to production.

Product development expenditure was again low during the year with no major
product developments launched. This lower level of expenditure will continue
until we begin the development programme to comply with the Euro IV emission
regulations, which come into effect in January 2007.


Retail and Service Activities

In March, we sold the freehold of the site occupied by our Mann & Overton (M&O)
London taxi dealership and simultaneously secured a lease for new premises
nearby. We will be able to move into the new premises in 2006, when the current
occupier's lease terminates. (Until then, we have entered into a lease of the
existing site from the new owner of the freehold). The new premises provide
increased showroom, service and parking space and will allow us to expand M&O's
London operations.

We reduced the scale of our retail operation in Bristol during the year. The M&O
dealership in the city was closed and replaced by a smaller sales office,
supported by M&O Birmingham. We sold the freehold in the Bristol dealership at
the end of the year.

The M&O dealerships' financial performance improved significantly from the
previous year, particularly in London, although both the Bristol and Birmingham
dealerships incurred losses. It is expected that the new combined operation will
trade profitably.

Our spare parts operation, which is managed by Unipart, had another good year
and achieved improved operating profits.

The contribution to the Group's taxi profits from our finance activities fell
during the year due principally to a reduction in finance business from our
independent London dealership.


Zingo

The Zingo mobile phone taxi hailing service was launched in April 2003 and grew
strongly up to December 2003. Following the Christmas and New Year holiday
period the growth in driver recruitment, and as a result, journey volumes,
slowed. Consequently, we consolidated the cost base of the Zingo operation and
our finance business in March to achieve a reduction of about half of the Zingo
monthly operating expenditure. This action by itself has been insufficient to
eliminate the monthly losses and Zingo is again expected to be loss making in
the financial year ending 31 July 2005.

The Board has therefore decided that it is appropriate to make an impairment
provision against the assets of Zingo of #2.6 million.

The Zingo system has proven itself to be technically robust and well liked by
passengers. We regularly have over twice as many hail requests than we can
fulfil. The limitation to growth in usage of the system, and therefore to
profitable operations, is the number of drivers who have joined Zingo. We will
again increase our efforts to recruit drivers during the autumn, including
continuing discussions with the existing radio circuits to use their drivers. We
have had a number of discussions with organisations which wish to license the
Zingo system for use in cities abroad, which, if successful, will generate a new
source of revenue.


Electric Delivery Vehicle and Hybrid Taxi

During the year we successfully completed two prototype electric delivery
vehicles. We recently agreed the sale of this project for a small profit to book
value. This project has increased our understanding of alternative powertrains,
which we expect to be an important feature of our business in the future.

We have also jointly developed with Azure Dynamics a series hybrid taxi
demonstrator which will form the foundation of our future low emission vehicle
strategy.


Head office

Following the simplification of the Group's activities as a result of the sale
of the Components Division last year, we closed the Group's head office in
London in December 2003, and relocated the activities to Coventry and Milton
Keynes. As a result of this and other cost savings we have reduced our central
costs from #2.7 million to #1.3 million.


Summary

After the major restructuring carried out last year, we have made further
progress towards achieving our long term goals. Our priorities in the coming
year will be to reverse the losses being incurred by Zingo, to secure approval
for the Chinese taxi joint venture, and to see taxi production begin in Mexico,
while continuing to improve the service we provide to our existing customers. We
have further strengthened our balance sheet and reduced our pension deficit, and
are well placed to meet the challenges that lie ahead.


Ian Pickering
Chief Executive




FINANCE DIRECTOR'S REVIEW


Profit and loss account

The loss before taxation for year ended 31 July 2004 of #1.2 million is a
significant improvement on the 2003 loss of #10.2 million, and includes an
impairment provision on the Zingo fixed assets of #2.6m. Last year did, however,
include net exceptional costs of #5.7 million (#7.5 million loss on the sale of
the Components Division and #1.8 million profit on the disposal of the Coventry
property) whilst this year's result include a net exceptional income of
#4.1million, including a profit of #4.7 million from the sale of our Holloway
Road, London property.

Overall taxi volumes increased from 2,320 last year to 2,494 with both UK and
overseas sales rising. Overseas sales were up by 233% to 223 vehicles, of which
the US was our largest overseas market with 168 vehicles. Group turnover of
#86.7 million was 1% up on last year, after excluding discontinued operations.

Vehicles operating profit of #4.3 million was slightly lower than the #4.5
million achieved in 2003, which included #1.1 million profit from the China
Brilliance settlement.

Zingo losses widened to #4.1 million (2003 #3.3 million) including #0.7 million
of marketing and advertising expenditure (2003 #0.7 million). In view of these
continuing losses, the directors have decided to make an impairment provision
against the carrying value of Zingo of #2.6 million.

Head Office costs were sharply reduced by 49% to #1.3 million (2003 #2.7
million) following the closure of the London head office, cost saving measures
and property rental income of #0.3 million (2003 nil).

Contributions of #1.3 million (2003 #2.4 million, including an additional #1.0
million following the sale of the Components Division) were made to the defined
benefit scheme, (which was closed in 1995) but expensed in line with SSAP 24. As
the UK Accounting Standards Board has delayed the compulsory implementation of
FRS17 until 2005, the Group has not applied it.

The total depreciation charge was #4.6 million (2003 #5.5 million) including
#1.0 million of depreciation for Zingo.

Exceptional costs of #0.6 million have been charged in the current year
associated with the sale of the Component Division, which took place at the end
of the previous year.


Balance Sheet

The group has net assets of #22.8 million (2003 #22.6 million) and group debt of
#1.7 million (2003 net cash #1.7 million) with dividends of #5.0 million (2003
#0.2 million) paid in the year.

The total group debt is represented by cash at bank of #6.4 million (2003 #8.7
million), less the stocking loan for finished vehicles of #7.4 million (2003
#6.7 million) and finance leases of #0.7 million (2003 #0.4 million). The Group
has a #3.0 million overdraft facility for which there is no current use.

#1.1 million of development costs associated with the electric delivery vehicle
(project Mercury) have been capitalised as an intangible asset, with associated
grant receipts from the Energy Savings Trust of #0.5 million held within
creditors as deferred income.

Warranty costs have increased during the year, leading to an increase in our
warranty provision to #3.4 million (2003 #2.5 million).


Cash flow

Net cash inflow from operating activities is #1.4 million (2003 excluding
discontinued operations #0.7 million).

With proceeds from the sale of Holloway Road, London (see below) exceeding the
cost of the purchase of the lease on Brewery Road, London, other capital
investments, and the project Mercury development costs, there was a net cash
inflow from capital expenditure of #0.9m (2003 #4.4m).

Total cash outflow before financing for the year of #3.5 million (2003 #11.2
million inflow) is largely the result of dividend payments to shareholders of
#5.0 million (2003 #0.2 million).

With #1.2 million cash inflow from financing (2003 #4.9 million outflow),
largely from a share placing, total cash flow decreased by #2.3 million (2003
#6.3 million increase).


Property

The Group sold its Holloway Road property for #7.9 million during the year and
acquired a larger replacement long leasehold premise in Brewery Road, near Kings
Cross for #4.6 million. This has been capitalised and is being written off over
50 years in accordance with surveyor advice.

The Group has retained interests in two investment properties from the sale of
the Components Division in the previous year - Montgomery Street, Birmingham
(book value #1.0 million) and Hadleigh Road, Ipswich (book value #2.8 million),
which are let to the buyers of the Components Division. Notice has been given on
both of these properties under the terms of the leases with occupation ending in
August 2005.


Pensions

The Group has two principal pension schemes, a defined benefit scheme, which was
closed in 1995, and a defined contribution scheme. An actuarial valuation of
the defined benefit scheme has been carried out in accordance with the
requirements of FRS17. This indicates a deficit of #6.4 million at 31 July 2004
(2003 #10.0 million). The principal changes in the deficit are cash
contributions by the Group totalling #1.3 million and a #2.4 million benefit
from the SERPS buyback exercise undertaken during the year.

In accordance with Minimum Funding Requirement (MFR) regulations, a schedule of
contributions to make good the deficit has been agreed with the trustees. This
involves contributions of around #1.2 million per annum, which is a higher level
than required by MFR regulations, in order that the deficit may be further
reduced.


International Financial Reporting Standards

The Group is required under European legislation to adopt International
Financial Reporting Standards (IFRS) in accounting periods beginning on or after
1 January 2005. The Group is developing a transition plan to manage the
conversion to IFRS, which will first apply to the Group's financial statements
for the year ended 31 July 2006.


Mark Fryer
Group Finance Director



CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the year ended 31 July 2004

Before Exceptional Total As restated Discontinued As restated
exceptional items (notes 2004 continuing operations Total
items 1d, 1e & 1f) #000 operations 2003 2003
2004 2004 2003 #000 #000
#000 #000 #000

Notes
Turnover 1 86,712 - 86,712 86,031 27,228 113,259

Cost of sales (73,278) - (73,278) (72,856) (22,820) (95,676)

Gross profit 13,434 - 13,434 13,175 4,408 17,583

Operating expenses 1(d) (14,549) (2,585) (17,134) (14,808) (5,619) (20,427)
Pension contributions to
closed scheme (1,325) - (1,325) (2,375) - (2,375)
Exceptional income - - - 956 - 956
Other operating income - - - 83 206 289

Net operating expenses (15,874) (2,585) (18,459) (16,144) (5,413) (21,557)

Operating loss (2,440) (2,585) (5,025) (2,969) (1,005) (3,974)

Profit on sale of fixed assets 1(e) - 4,659 4,659 1,857
(continuing operations)
Loss on disposal of 1(f) - (559) (559) (7,524)
discontinued operations

(Loss)/profit on ordinary
activities before finance
charges (2,440) 1,515 (925) (9,641)

Finance charges - net (249) - (249) (516)

(Loss)/profit on ordinary (2,689) 1,515 (1,174) (10,157)
activities before taxation

Tax credit on loss on ordinary
activities 550 147 697 2,033
Tax credit on exceptional items - 168 168 -

Total tax credit 2 550 315 865 2,033

(Loss)/profit on ordinary activities
after taxation for the financial
year (2,139) 1,830 (309) (8,124)

Dividends (including
non-equity dividends) 3 (620) - (620) (4,863)

Transferred (from)/to reserves 7 (2,759) 1,830 (929) (12,987)

Basic loss per ordinary share 4 (1.96) p (45.92)p

Diluted loss per ordinary share 4 (1.96) p (45.92)p



Dividends:

Preference dividend paid 53 56
Special ordinary dividend paid
- nil p per share (2003 25p) - 4,453
Interim ordinary dividend paid
- 1p per share (2003 nil p) 189 -
Final dividend payable -
proposed 2p per share (2003 2p) 378 354

Total dividends 620 4,863


All activities in the current year arise from continuing operations with the
exception of the loss on disposal of #559,000 in relation to the previous
financial year (note 1(f)).


Historical cost profits and losses

On an historical cost basis, the loss on ordinary activities before taxation and
the retained loss after taxation and dividends would have reduced by #634k (2003
#6.7m), #708k (2003 #6.5m) due to the realisation of property revaluation gains
of previous years, less #74k (2003 plus #176k) due to the difference between the
historical cost depreciation charge and the actual charge calculated on the
revalued amount.




CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
for the year ended 31 July 2004
Notes 2004 As restated
#000 2003
#000

Loss for the financial year (309) (8,124)
Unrealised net deficit on revaluation of properties (110) (109)
Currency translation differences - (6)

Total recognised losses relating to the year (419) (8,239)

Prior year adjustment 6 285

Total loss recognised since the last annual report
and financial statements (134)





CONSOLIDATED BALANCE SHEET
at 31 July 2004
2004 2004 As restated As restated
#000 #000 2003 2003
Notes #000 #000

Fixed assets

Intangible assets - development costs 1,137 -
Tangible assets 19,829 23,339

20,966 23,339

Current assets

Stocks 15,987 15,419
Debtors 5,996 5,702
Cash at bank and in hand 6,399 8,726

28,382 29,847
Creditors Amounts falling due within one year (22,932) (27,638)

Net current assets 5,450 2,209


Total assets less current liabilities 26,416 25,548
Creditors Amounts falling due after more than one year (199) (42)
Provisions for liabilities and charges (3,399) (2,948)

Net assets 22,818 22,558


Capital and reserves

Called up share capital 5,371 5,179
Share premium account 4,700 3,593
Capital redemption reserve 916 916
Revaluation reserve 1,860 2,429
Employee Share Ownership Plan (ESOP) Reserve (500) (500)
Profit and loss account 10,471 10,941

Shareholders' funds including non-equity interests 7 22,818 22,558


Net assets per ordinary share 117.2p 121.7p

[grupo] 06/10/2004 08:42

LONDON (AFX) - Taxi services group Manganese Bronze Holdings PLC said its
pretax loss for the year was "significantly reduced" as a result of a 4.7 mln
stg property sale and a 7.5 pct rise in taxi sales.
The group posted a pretax loss for the year ended July of 1.2 mln stg
against a 10.2 mln stg loss a year ago. Turnover for the period rose 1 pct to
86.7 mln stg and the group maintained its final dividend of 2 pence per share.
Chairman Tim Melville-Ross, however, gave a cautious outlook, saying the
review of the Conditions of Fitness and the Public Carriage Office's proposed
emission regulations for taxis is causing drivers to delay purchasing new taxis.
"The resolution of these two issues will have a significant effect on the
Group's result for the financial year ending 31 July 2005. The overall result
will also depend on when we are able to eliminate the losses being incurred by
Zingo," he said.
The chairman also said a resolution will be put at an AGM later this year to
give directors the option to buy or cancel shares in the company and improve
returns for shareholders.
[e-mail]
ma/ab

[alunmorris] 06/10/2004 08:28

A great improvement? The only reason pretax and basic EPS has improved is due to an exceptional gain this year and a exceptional loss last.

Adj pretax is -£2.7m (2003: -£2.5m).

Taxi sales are up by Zingo still bleeding despite re-organisation.


Alun

short MNGS

[c lau] 06/10/2004 07:35

It is a great improvement over the last year result! The LPS is getting narrow. Profit will be coming next year or so....

[toffeeman] 30/9/2004 16:06

25,000 T trade at well below the bid - either an input error or something up!

[toffeeman] 27/9/2004 12:16

50,000 roll-over today - so someone is optimistic!

[toffeeman] 23/9/2004 19:07

Yo JS

Nice short term resistance at 180 - set ya stop there

[toffeeman] 15/9/2004 10:49

Results in two weeks - I think - expect them to be pretty dire.

I think they may have to write down some of their investment in Zingo (they spent over £7m on it) as it appears to have peaked at below break-even level - I think most of the initial cabbies have had their kit in for a year so it will be renewal time....

Will the institutions who have bought in at much higher prices ask for heads

Placing price was 147p so watch that level carefully.

I am short - so I would say that!

cheers

[c lau] 25/8/2004 00:03

More institutions bought this stock. There must be something happening.....

[grupo] 23/8/2004 13:59

COMPANY GONE BUST

BOUGHT OUT AND RENAMED


The company, founded in 1919, was rescued by Li Shufu, of Shanghai-based Geely Automotive, and Volvo, in February for £11.4m. The Chinese businessman has pledged £150m for development of new models, including innovative ultra-low emissions taxis.

The new holding company was named The London Taxi Corporation, and it traded as The London Taxi Company (as LTI had done). This successor company was renamed to London EV Company in 2017.






Black cabs hailed across the pond

By Guy Robarts
BBC News Online business reporter



From Westminster Bridge.... to the Golden Gate Bridge
How many tourists have returned from a holiday in London wishing they could take home an authentic black taxi?
Now, Manganese Bronze, the company that makes the iconic cabs, is hoping to cash in on that longing.

By turning towards the export market, the firm hopes to reverse three years of losses.

Black cabs are already seen on the streets of San Francisco and Ottawa thanks to a distribution deal with London Taxis North America (LTNA).

Now the taxi maker is pushing ahead with plans to start production in Mexico and China.

Rough ride

Manganese Bronze itself has had a bit of a rough ride over the last year, with taxi sales down 11%, while its share price has slumped by almost 50% since May.

In February, it announced it was shifting some production to China after a slump in tourism and job losses across London's financial district hit the taxi industry and earnings for cabbies.

Black cab sales, which depend on consumers' willingness to spend money on taxi fares, are often seen as a barometer for the wider economy.

Black clouds gathered for the Coventry-based company in June when it warned that its results this year would not match analysts' forecasts.

U-turn


The US distribution deal and its other overseas ambitions could, however, mark a turning point.

Though black cabs cost $50,000 (£27,000) apiece, more than double the cost of a saloon taxi in the US, the attraction of its design is winning it a new fan base overseas.

Unlike New York's Ford Motor Crown Victoria taxi and Mexico City's Volkswagen Beetle, the black cab, sporting a roof 55 inches above floor level, can cater for tall people and even top hats.

Its 25-foot turning circle means cabbies can drop passengers off at one curb and pick up more at the opposite curb by making a quick U-turn.

"It's a very distinctive vehicle," says Ian Pickering, the company's chief executive. "And it provides a lot better comfort for people in the rear."

High cost


Despite the high cost taxi drivers still get savings from the vehicle, Mr Pickering says, because London cabs are a lot more "rugged and durable" than some of the saloon cars they normally use in North America.

An added financial attraction is that they use diesel power which is very unusual in the US.

"It's a lot cheaper to operate," Mr Pickering says.


But to really break into the US market and to grow its business overseas, Manganese concedes it needs to get the cost of the vehicle down.

This means starting production abroad.

"We're working on starting [an operation] in China and also in Mexico," Ian Pickering said.

"We would hope through having these overseas operations we can reduce production costs." The company's final results will be announced in September. On Monday its shares were trading up 5.25 pence at 160p.








www.taxi-point.co.uk/post/taxi-manufacturers-levc-reveals-new-zero-carbon-mobility-strategy-heading-into-2023

[toffeeman] 10/6/2004 15:29

Well something's up - closed my short