Taxi Driver Online

Manganese stalled by slow taxi trade

London hackney cab maker Manganese Bronze says annual operating losses rose 45% to £2.9 million in the face of falling taxi trade in the capital.

Manganese, which owns Coventry-based London Taxis International, said UK taxi sales fell by 12% to 2,253 in the year to July 31, against 2,561 last time.

Taxi use has suffered from the impact of the Iraq conflict and the Sars virus, as well as uncertainty caused by a review of taxis by the capital's transport authority Transport for London, the company said.

Although Manganese's core vehicles division produced operating profits of £4.5 million, up from £3.7 million last time, sales dipped £900,000 to £86 million.

The operating figure was boosted by cost controls and the £1.25 million proceeds of a settlement of the firm's dispute with Chinese firm China Brilliance over an aborted deal to produce taxis for China.

Chairman Tim Melville-Ross said the economic outlook remained uncertain.

"Any improvement in UK taxi sales will depend on an upturn in activity for our taxi driver customers," he added.

Manganese is focusing on production of taxis and related equipment after selling its vehicle components division for £8 million in July.

The company sells about 97% of its taxis in the UK, but has begun marketing its taxis in the US and received orders from Spain and Thailand for 77 taxis during the year.

It completed the sale and leaseback of its Coventry site during the year, which raised £8 million.

Bottom line losses before tax and finance charges were £9.6 million against £2.2 million previously, which Manganese attributed to the components division disposal, development costs and pension contributions.

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So there you have it, losses have nearly doubled, they are selling fewer vehicles. However is it the fault of a s*** product, that's vastly overpriced and over rated.

Oh no, not according to LTI, it's the fault of Sars and Blair's war.

Thank goodness for that !!!!!!

Hope there's some good mechanics in spain and thiland

if they just put the price down a bit people would buy them.
but all the time ypou have to pay over the top for them people will not buy them and why should they.
i agree with the uions that lti shouldn't go bust but im not a charity.

It'll be interesting to see what the OFT have to say about turning circles, LTI and suchlike.

Monopoly supplier + limited market = High price + low quality (although Mr Guest seems to be a fan!).

Dusty

The Zingo isn't doing well either, they've got 700 out of 20,000 in London, and they want 3,000.

Dusty

tell me dusty as an accountant, they are nearly up the shoot arnet they?

looks like they are selling assets left right and centre

Wharfie

As a taxi driver I don't really know Wharfy

Without seeing the balance sheet etc it's not that easy to tell.

I suspect things may pick up for them now that the COF review is out of the way.

But it'll be interesting to see how what the OFT have to say about turning circles etc affects the share price though!

Dusty

ok then, as a taxi driver, are you happy to put your pension money in LTI?
or shall we just put micks in?

Well the latter does look the best alternative.

Unless LTI bring out a vehicle without the turning circle (which should bring the price down), they will go bust.

London do take the majority of TXs, but in the rest of the country TXs just don't sell, unless drivers have no choice.

In my unprofessional opinion, if Cab Direct challenge the Mayor's decision to only keep the turning circle, they will win. But I doubt it will reach court.

At this point in time I'd be more likely to invest money in a taxi plate than in LTI shares, so the answer is a resounding no!

And I wouldn't be that cruel to Mick either

Dusty

Like a lot of movers and shakers in the trade they are probably waiting to hear what the OFT have to say before making major moves.

Are there any big cities that don't allow the Eurcabs on these days apart from London (and I'm not counting Mansfield as a big city!) - I seem to recall from the Edinburgh forum that they aren't allowed there, but I may be wrong!!

Dusty

Come the OFT report, I believe there will be no big Cities that forbid the Euro 7, or the Jubilee.

The trouble will come when the delivery times of those vehicles start going silly.

If they are between 4 and 8 weeks now, what's it going to be like when everyone can have them?

12 months spring to mind.

Just like the 'good' old days of Mann And Overcharge of Wandsworth Bridge Road. Demanded a deposit made you wait 12 or more months for a design of vehicle some 30 (then) years old.

Claude

Which is perhaps the only benefit of the slow-down.

Now LTI are having to view customers as customers, not something the cat dragged in.

Will LTI learn from past mistakes, I hope so.