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London black cabs maker Manganese Bronze had a challenging first half as taxi drivers held on to their fares and tips rather than splash out on a new vehicle.
“It was a half very much of two quarters,” said chief executive John Russell. “In the first three months we sold 4% more cabs, or 453.
“Then came the disruption to airports caused by the volcanic ash cloud, the general election and the ending of the scrappage scheme. Second-quarter sales dropped 29% to just 330 vehicles. Since then things have moved back to more normal levels.”
Manganese is near to completing the biggest shake-up in its history, which will see black cabs manufactured in China and merely assembled in a scaled-down operation in Coventry.
That should reduce costs by some £1500 per cab.
The firm is also concluding a 20 million share placing with its Chinese partner Geely, which will become the largest single shareholder.
Operating losses were reduced from £1.4 million to £1 million in the six months to June on revenues down by 9% at £33.4 million.
The Chinese joint venture was profitable in the first half.
Manganese shares, which recently transferred to the junior AIM, rose 1¼p to 36p.
