Results today from Manganese Bronze Holdings Plc, makers of London's black cabs. It posted a loss for the full year on lower sales but said it was confident in the medium term because of cost savings with the start of taxi production in China. Highlights:
- Operating loss before exceptional items and tax of £5.4 million (17 months ended 31 December 2007: £5.6 million profit).
- Expect big savings from Chinese production - The current price of TX4, its Euro IV-compliant model launched in 2006, is £28-34000 pounds. The company expects the production cost of Chinese made TX4 model to be about 15,000 pounds per car.
- International marketing progressing to plan despite worsening market conditions. International vehicle sales scheduled to commence in second half of 2009, with a current indicative order book of 8,000 vehicles over the next three years. UK sales performance continues to be adversely impacted by current economic conditions, particularly in London.
- Net debt increased to £7.2 million (31 December 2007: £3.2 million net cash).
- No final dividend for 2008 will be paid.
- The taxi maker said that it had sought help as part of the £2.3 billion car industry rescue package to support its environmental initiatives and mitigate potential additional risk.
milestones. Commercial production of the London taxi has now commenced in Shanghai, with indicative orders for 8,000 vehicles. Current trading continues to be adversely impacted by the wider downturn in the automotive market whereas our confidence in the
medium term prospects for the group continues to grow."
http://www.stockopedia.com/news/announcement/MNGS/090305mngs3449o.htm
What's your view? Are they going to get dragged down by the London economy or will China and the overseas sales save them?
