Taxi Driver Online

Later today Manganese Bronze will issue their second INTERIM MANAGEMENT STATEMENT, which will no doubt make interesting reading.

Here is an extract from their first 2008 statement in May.

Date: Monday 19th May 2008

MANGANESE BRONZE HOLDINGS PLC

INTERIM MANAGEMENT STATEMENT

Manganese Bronze Holdings PLC (the Group), the leading manufacturer of the distinctive London taxi, today announces its first interim management statement covering the period from 1 January 2008.

Current trading

Our TX4 taxi has received an excellent market response and a strong endorsement from our customer base.

Passenger demand for taxis remains healthy despite uncertainty in London's financial markets.

As previously reported, sales in the first quarter were below the level witnessed in the same period last year due to this uncertainty and also in comparison with one of our best first quarter sales performances in the history of the Group following the launch of TX4. Trading in April has continued in line with our expectations and the Group's balance sheet remains strong.

Prospects

We believe that the underlying appeal of the TX4 will continue to be strong in 2008. The Board remains confident of delivering a profit performance at least in line with expectations for the current financial year with any UK market uncertainty being more than offset by the benefit of lower than expected start-up losses in Shanghai LTI.

Shanghai LTI remains on plan to deliver a step change in the Group's prospects and financial performance with significant profit contributions for 2009 and onwards from procurement savings and international sales.

Regards

JD

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It should be interesting to see how the PR men put a positive spin on the latest saga...

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http://wingsoverscotland.com/ http://www.newsnetscotland.com/

Manganese Bronze Tumbles After City Meltdown Ravages Taxi Sales

By Steve Rothwell

Oct. 22 (Bloomberg) -- Manganese Bronze Holdings Plc, the biggest maker of London's iconic black cabs, fell the most in at least 19 years in U.K. trading after the global financial crisis and economic slowdown sent taxi sales plunging.

Manganese tumbled as much as 26 percent, or 44 pence, to 125 pence, the biggest drop since at least May 30, 1989, after the Milton Keynes, England-based company said today that sales declined 38 percent to 1,628 vehicles in the first nine months.

Orders for the carmaker's 34,000-pound ($55,000) cabs slumped as Britain's worst banking crisis since World War I wipes out thousands of jobs in the capital's financial district, reducing spending on taxi journeys. Demand may fall further as the U.K. economy moves toward a recession that Bank of England Governor Mervyn King said last night may already have begun.

``U.K. business conditions continue to be uncertain, which makes forecasting the level of demand for new vehicles more challenging,'' Manganese Bronze said in a statement. The weakness of the pound versus the euro has also increased the cost of engines that are purchased from Italy, the company said.

The stock was trading down 5.9 percent at 159 pence as of 8:52 a.m. in London, taking declines this year to 72 percent and cutting the company's market value to 40 million pounds.

The drop in nine-month sales was due in part to a year- earlier surge in demand following the introduction of the TX4 model, Manganese said. Earnings are also being hurt by costs from an overseas sales drive, it said.

To contact the reporter on this story: Steve Rothwell in London at srothwell@bloomberg.net

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Think of how stupid the average person is, and realize half of them are stupider than that.
George Carlin

Damming Forecast for LTI sends shares plummeting.

Interim Management Statement

22nd October 2008

Manganese Bronze Holdings PLC (‘’Manganese Bronze’’ or the ‘’Group’’), the leading manufacturer of the distinctive London taxi, today announces its interim management statement for the period 1 July to 21 October 2008.

Current Trading

Trading in the UK continues to be impacted by the uncertain macro economic conditions, as we previously flagged in our interim results in July. As reported then, the Board believes that demand for new vehicles in the second half of the year will follow the normal seasonal pattern and be below that of the first half. UK business conditions continue to be uncertain, which makes forecasting the level of demand for new vehicles more challenging. Overall vehicles sales for the nine months to the end of September are down 37.5%, to 1,628 vehicles versus 2,604 vehicles in the comparable period last year. This is due to a combination of uncertain economic conditions and the fact that the comparative period saw a near record sales volume following the successful launch of the TX4.

Earnings continue to be negatively impacted by three factors: the strength of the Euro increasing the cost of engines purchased from Italy; the costs of supporting the joint venture set up with engineers; and the cost of the international sales and marketing team.

We have responded to lower sales and higher working capital by reducing vehicle output to lower inventory levels, implementing an aggressive reduction in operating costs, and headcount reductions. The result of these actions is a 15% reduction of the manufacturing break-even level to approximately 2,000 vehicles per annum.

TX4 Update

LTI, a wholly owned subsidiary of Manganese Bronze PLC, has been carrying out a full and thorough investigation into the root cause of the twelve under bonnet fires that have occurred over the last few months in early production models of the TX4 taxi.

As announced on 26 September 2008, a product recall of all TX4 vehicles was commenced with product actions including modifications to the emission control equipment, the heat management system and under bonnet insulation. To date nearly 400 vehicles have had the rework completed and as a result there are now *600* vehicles off the road awaiting the rework. There are an additional *4400 operational vehicles that will require the rework* and this is planned to be completed by the end of February 2009.

We still expect the costs of the recall to be approximately £4m, and that this will be fully expensed in the current financial period to 31 December 2008. Manganese Bronze is already in discussions with its insurers and relevant suppliers to establish liability and opportunities for recovery of some of these costs. When legal liability has been determined there may be additional costs for driver compensation for the period the vehicles are off the road.

Progress on China and International Sales

Our joint venture in China, Shanghai LTI, offers the greatest potential to secure the long-term profitable future for the Group. On 25 June, we were very pleased to report further excellent progress with the start of prototype production on schedule. The prototype vehicles are now being subjected to the planned programme of thorough testing leading to the start of commercial production at the end of 2008.

Contracted procurement savings for Chinese produced parts for our Coventry facility are in line with market expectations with the impact of lower cost Chinese parts now expected to make a positive contribution in 2009.

Further encouraging progress has been made with the development of the Group’s international sales pipeline. We now have signed memoranda for over 8,000 vehicles over a period of three years with deliveries commencing in early 2009, and there remains a significant pipeline of further potential customers.

Initial production in Shanghai will meet the homologation requirements for China. European Whole Vehicle Type Approval (‘’EWVTA’’) is on target to be achieved in the first half of 2009. EWVTA is the homologation standard for the markets for which we have signed MOUs. The plan for homologation compliance for the North and South American markets is not yet finalised but we still believe North America represents the biggest market opportunity for the Shanghai built TX4.

Prospects

The UK market place remains challenging and **the Board does not expect that UK sales will exceed the manufacturing break-even point in 2008.** Shanghai LTI remains on plan to deliver a step change in the Group’s prospects and financial performance with significant profit contributions from mid 2009 to the group from procurement savings and international sales.

Cautionary statement

This Interim Management Statement (“IMS”) has been prepared solely to provide additional information to shareholders to access the Group’s strategies and the potential for those strategies to succeed. The IMS should not be relied on by any other party for any other purpose.

The IMS contains certain forward-looking statements. These statements are made by the directors in good faith based on the information available to them up to the time of their approval of this report and such statements should be treated with caution due to the inherent uncertainties, including both economic and business risk factors, underlying any such forward-looking information.

Further updates will be made in due course.
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As predicted LTI are heading for a massive sales loss this year, add to that the fire effect and the obvious miscalculation by manganese Bronze of the total cost of damages for lost earnings then their immediate future is not too bright.

We all know by now that the company has placed its future in the hands of Geely but the way things are going it wouldn't surprise me if the Coventry plant was closed for manufacturing purposes sooner than I anticipated.

Check out the highlighted text.

Regards

JD



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In the highly likely event that they will close and stop all manufacturing over here, what happens to the owners who have them now, when they need parts like radiators and the many other things that feck up and need replacing.

They'll be in the same lifeboat as the owners of Metrocab Series 1,2,3 and TTT models.

The major shareholders have to consider whether or not it is viable to sustain a plant that has no prospects of ever again making a profit? There are too many negatives in the LTI business model for it to survive in its current form.

From 2001 to 2004 LTI made a loss and from 2005 to 2007 they made a profit. They will make a loss in 2008 therefore 5 of the 8 years have yeilded a loss and only three have yielded a profit.

Knowing what we know, it is obvious that their future prospects are bleak.

Obvioulsy the major shareholders don't understand the taxi trade and it would appear they have fallen for the slight of hand that the London cab is an ICON.

If you're Chinese selling the Londonn cab as an ICON might be easily acheived but try selling that idea to anyone considering buying one?

Regards

JD

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Don't forget that LTI lease the coventry plant from Matega.ltd on a 20 year lease back arrangement.

Regards

JD

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Especially, as I believe they own the land the plant is on, and that accounts for a large slice of their shareholder's value.

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IDFIMH

The last five years vehicle sales. It is forecast that the 2008 sales won't even reach 2000. It should be remembered that the 2007 figures were inclusive over a 17 month period.




Regards

JD

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"There are an additional 4400 operational vehicles that will require the rework and this is planned to be completed by the end of February 2009."

This confirms what has already been posted in these columns.
All TX4s will be modified.
This means LTI are selling a vehicle they know is unsafe and will be recalled and modified next year...

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Charlton's lost past http://www.youtube.com/watch?v=jsFKWGlrze0
London's future? http://www.telegraph.co.uk/news/uknews/ ... rants.html

Front page news in the Business section of the "Telegraph"

Not all doom and gloom, according to "Questor"

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Former taxi driver

You missed the "UN" out of unlikely.

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Former taxi driver

The share review on the Torygraph is at:-http://www.telegraph.co.uk/finance/markets/questor/3243374/There-will-come-a-time-when-Manganese-Bronze-is-a-buy-again-but-not-just-yet.html

Notice there is just one line about the fires "Costs associated with the recall of cabs following engine bay fires have hardly helped."
It appears Man.Bron are doing a better job in suppressing a bad press in the City than they are with fires on the TX4!
Also the greatest competition LTI has ever known.the Vito,is not mentioned.

The TX4 is doomed.Until they come at with a new engine,TX4 sales will be dramatically down.
Manganese Bronze's future is in China not the UK;hence the not so gloomy review.

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Charlton's lost past http://www.youtube.com/watch?v=jsFKWGlrze0
London's future? http://www.telegraph.co.uk/news/uknews/ ... rants.html

Taxi driver online has been calling this right for ever and a day, in fact it is the only taxi media source that has. I wonder how the taxi media who rely on LTI advertising dollars will report what we've been reporting for years?

I suppose they could always write "Taxi Driver Online predicts the demise of LTI in the UK" and has done so for the last five years.

The Chinese venture is an unknown that will mostly depend on price and quality of vehicle. We all know the vehicle is vastly overpriced and they can't sell it anywhere in the world.

I envisage a major restructuring of this company with the Coventry plant closing down and all manufacturing moving to China. I predict in future, if those 17 councils and TFL who insist on the COF want to keep the ICON and its turning circle then they are going to have to do it the chinese way.

The Ball is firmly in the Chinese court but if they wan't to retain a market in the UK then they will have to reduce their prices dramatically. Once the COF has gone which it most certainly will, then it is hard to envisage at todays prices where sales of the ICON will come from?

There is plenty of information and comment on this website regarding LTI and I fully expect some of it to appear in the Taxi press sooner rather than later. I just hope they give us credit for being the only outfit that has consitantly predicted their demise in the UK.

Regards

JD

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