London taxi manufacturer leans on Chinese partner
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Manganese Bronze, which makes the distinctive London taxi, said today (18 March) that it was on the road to recovery but that its relationship with its Chinese partner, Geely, was crucial to its continuing success.
Announcing the company's 2010 results, group chief executive John Russell said: "2010 was another difficult year for our UK taxi manufacturing operation. However, the actions taken to return the Group to profitability have now been completed, culminating with the successful launch of the new TX4 (pictured) and the rebranding of the manufacturing and dealer facilities as The London Taxi Company.
"Our relationship with Geely is crucial to the Group's long term success, and it has been further strengthened by the appointment of George Zhao and Frank Cao to the MBH Board. The order for 1,000 London taxis from the Republic of Azerbaijan through Shanghai LTI that was signed earlier this month demonstrates its potential.
"The Board is confident that, with the extension of credit terms from Geely, the continued support of the Group's bankers, and the improvement in operating margins delivered by restructuring, the Group is well positioned to return to profitability in 2011 and make further progress with joint initiatives with Geely."
Revenue for the year was 4.8% down at £69.6m (2009: £73.1m) and pre-tax losses were £6.3m (2009: ££7.3m).
Among 2010 highlights, international sales volumes were up 8.1% to 226 vehicles (2009: 209) and London market share was up from from 75% to 82% since the launch of the new TX4 model range.
