Manganese stalls after results warning
London black cab maker Manganese Bronze warned its results will miss expectations today after it was hit by lower sales and higher than expected radiator repairs on its newest taxi model.
The group said it had spent more on warranty repairs last year than expected after a rash of claims for faulty radiators on the TX4 model.
While the radiator issue has now been resolved, Manganese said it only uncovered the warranty blow when preparing its full year figures.
The group also revealed that vehicle sales dropped 12% last year to 1,724 as cabbies remained nervous about committing to buying new vehicles amid the recession.
Shares in the group plunged by as much as 20% on today’s alert, which comes after a torrid past two years for the firm.
The TX4 suffered a spate of engine fires in 2008 that forced Manganese to recall and refit almost 6,000 cabs at a cost of £3.8m.
The recall was more than 98% complete by the end of September, but liability for the original problem has yet to be confirmed.
Manganese also cautioned of job losses in the autumn as it put its Coventry-based London Taxis International (LTI) workforce - which makes the TX4 - under review.
It said today this consultation was “nearing completion”, with an update due with its full year results.
Manganese has been battling against recession pressures, swinging £600,000 into the red in the first half of 2009 against a £1.5m profit a year earlier.
The sales slide seen in the first half failed to ease in the second, while it also said international sales were impacted by financing.
It sold 212 vehicles abroad in 2009, although this marked a rise on the 173 sold in 2008.
Manganese is pinning its hopes on a Chinese joint venture to boost international sales.
It said today that customer reaction to the Shanghai-built London taxi had been positive, with the run rate consistent with aims to sell around 1,000 cars in China this year.
source:
http://www.liverpooldailypost.co.uk/
Login
Register
FAQ
