Taxi-maker extends credit terms and predicts a return to profit

The company reminded shareholders that a revised TX4 model range had been launched in November, manufactured in its re-structured Coventry factory and using the lower cost bodies and components imported from Shanghai LTI Automobile Company (SLTI) the Chinese partner in which it has a 48% shareholding. A trading statement went on: "The operating profit margins for these vehicles are in line with our expectations and at a level which would be required to support a return to profitability by the Group in 2011." Manganese Bronze also announced an extension of credit terms to 120 days for amounts due from Manganese Bronze to SLTI relating to the supply of parts and components. Chief executive John Russell said the extension of trading terms by SLTI demonstrated the support that the Chinese operations were willing to provide to Manganese Bronze in challenging economic times. It would continue to work with its Chinese partners on initiatives to develop and improve the taxi business, he went on before re-affirming previous statements that the Group was not in discussions with them regarding any proposed placing or offer for the Group. Turning to current trading, Manganese Bronze reported that in the UK, sales of TX4 taxis in Q4 of 2010 were 384 versus 382 in Q4 of 2009. Sales at 1,653 in the year to 31 December 2010 were down by 71 units from 2009 but did recover in the second half from the shortfall of 137 units caused by the ash cloud in Q2. International sales, at 226 in the year ended 31 December 2010, continued to be negatively impacted in Q4 by the lack of financing, but interest in the London Taxi still supported an annual sales rate of in excess of the 2010 result.