Manganese Bronze hails Chinese taxis

Announcing its financial results for an extended financial period – the 17 months to 31 December 2007 – the company said one of its priorities this year was to put the latest TX4 into production in Shanghai. The unusual reporting period is caused by a decision to align the company’s year end with that of its Chinese joint venture, Shanghai LTI, and its joint venture partner Geely. Chief Executive John Russell (pictured) said Manganese Bronze was delighted with its improving profitability and a significant increase in operating cash flow resulting from the success of the TX4 and the substantial progress the company had made with its joint venture in Shanghai. “Our focus in 2008 is on maintaining and increasing the momentum of the TX4 in the UK whilst investing in primarily environmentally led product initiatives; putting the TX4 into production in Shanghai and achieving the challenging cost, quality, and timing objectives that we have set; creating the sales and marketing infrastructure to realise the international sales opportunities for TX4 and realising our vision to make the London Taxi a successful global icon,” he said. “The successful implementation of these actions will generate a marked improvement in our future profitability.” The TX4 model had received “excellent market acceptance”, the company said, leading to significant growth in sales and profits - operating profit for the 17 month period was £5.6 million (12 months ended 31 July 2006: £3.2 million). And with the Chinese joint venture finalised, all significant milestones had been met with prototype production planned to begin in mid 2008. Over the 17 months, just under 4,200 vehicles were sold which together with income from financing, servicing and parts supply, generated sales of £144.5 million. Russell said the UK Coventry factory had maintained an average production rate of 65 vehicles per week during the 17-month financial period, with the company being able to take advantage of its inherent manufacturing flexibility and adjust the build rate to balance good availability of product in the market place with optimised inventory levels and also to reduce the effect of market seasonality. “We continue to seek out opportunities for efficiency improvements and cost reductions in Coventry and a significant investment project was approved to improve the operation of the press shop,” he went on. “A total of £0.4 million is to be invested in a new press and associated process improvements which will come on stream in mid 2008. The investment will improve productivity, bring pressings that are currently difficult to source externally back in-house and provide significant quality and working environment benefits.”