Taxi Driver Online

Manganese Bronze hails profits return

Manganese Bronze, the maker of London's black cabs, today hailed a return to profit after four years of sustained losses - but its shares slipped on profit taking and a lack of clarity about forthcoming taxi sales. Manganese, led by chief executive Ian Pickering, told investors this morning that pre-tax profits for the year to the end of July had come in at £1.6 million. This compares with a loss of £1.2 million in 2004 and figures in the red for each of the previous three years.

Mr Pickering said: "We have completed the initial phase of the turnaround of Manganese Bronze. Following four years of losses, we have delivered a pre-tax profit of £1.6 million. "We have a strong balance sheet which gives us the resources to invest in the development of our core UK taxi business and a clear growth strategy for overseas expansion."

As the company signalled it was making positive progress in its current financial year - with sales of new cabs ahead of the same period last time - Manganese said it now had a controlling stake in its North American distributor. It also said there had been "encouraging" initial results from trials in Mexico and that it was in ongoing talks with the Chinese government for a licence to make and sell taxis in the region.

Manganese said it would be increasing the level of its investment in product development and capital expenditure this year as it prepares for new regulations governing emissions levels due in 2007 and lines up a move of its main dealership in north London next year.

But shares in the company lost 1.5p to 183p in slim trading volumes this morning. The shares rallied at the end of last week as dealers predicted that it would return to full-year profits.

Although the company said it has sold 72 more black cabs so far this year than last, at 385, it cautioned that much still depended on the next stage of its new business strategy, dubbed the "London Conditions of Fitness".

"Taxi sales as in the United Kingdom for the year as a whole will depend on the outcome of the Conditions of Fitness review. As with all UK manufacturers, our production costs are being impacted by the increased costs of raw materials and utilities, which we will seek to mitigate in the year ahead," chairman Tim Melville-Ross said.

Manganese is recommending a 50 per cent increase in the dividend to 3p from 2p. Ahead of the results dealers were predicting that the current boom in acquisitions business for the City's investment bankers would be good news for the company and would boost taxi travel throughout the capital.

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IDFIMH

I bet he gets paid fortunes for stating the bloody obvious.

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IDFIMH

so a 1.2 mill loss last year and a 1.6 mill prof this year, so thats a 2.8 mill difference on last year. divide that in to the 385 cabs they sold thats £7270 profit per cab.

A more rounded article would have provided more information on why the outcome is so important, particularly as the article is presumably aimed at business readers rather than the trade.

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Taxi Driver Online
www.taxi-driver.co.uk

I very much doubt anyone in this trade would be investing in LTI.

Even if the PCO keep the CoF.

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IDFIMH

Which they will. probably.

Seeing as the 25ft turning circle is deemed "Essential"

Essential for LTI yes, for the trade, who knows?

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IDFIMH

whilst I have given my trusty Fairway to my partner, I have been driving a bread van, and I tell you what they are rubbish at turning, so I guess I will be replacing it with a TX of some desc ription.

Oh, God, not the I have any identity because I have a 25ft turning circle routine.


Tell that to the Ph they seem to get on fine without it.

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All animals are equal but some animals are more equal than others.
George Orwell, "Animal Farm"

if someone wants to buy an expensive uturn then good for them.
but i perfer the VW or the Merc.
and you earn more money with a vehicle thant takes 7 or 8. than 5.
and thats all that counts.

So what are the extra's charges for each additional passenger over 5?

Here, that would be an extra 80 pence. Wow. Me? at night I will happily pass back the six or seven rowdy lads who give you earache, and take that nice couple, to their nice house, who give you a nice tip, in excess of 80 pence.

A colleague recently took a look at that nice Merc, the one with the shiny bumpers, and all. With all the bells and whistles, it tops nearly £40,000.

I think the point being the marketing advantage, we have 5 seats they have eight. Who do you phone if you are in the suburbs or the country especially if you want just one taxi to do the job at a fraction of the price.

£40 between 8 people or £40 between 5, you chose?

Maybe the £40,000 Merc is worth every penny, I can't see the point in putting a vehicle like this on unless it is, there seems to be a lot more of them going on in Edinburgh.

Edinburgh Taxis at one time picked up all over the city, now you are luck if you get a job in the outlying areas. We are all donutted around the city centre.

I think the vehicle type speaks for itself TXI, TXII you have got to be having a laugh.

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All animals are equal but some animals are more equal than others.
George Orwell, "Animal Farm"

within the city a massive 60 each.
but our firm does shed loads of airports and they charge rate and a half.
i also get loads of private work and in the summer its a case of namimg youtr own price. eg stonehenge wait two hours and back £400.
also it get you work from the back of the rank. and from the back of the radio point.
all this for five grand cheaper than a TX2.

A Taxi driver in Edinburgh told me the other night there it would be the end of the taxi trade if we had vehicles types other than the TX. I asked him if he was making more or less money than what he did 5 years ago, his reply was a resounding "less" I then asked him why?

He then went on to blame the increase in the Ph, and guess what, no level playing field and their 8 seat vehicle types, but still stuck to his guns when it came to replacing the TX.

I’m starting to think that driving a TX is some sort of cult regardless of what is going on in the big bad world.


You just couldn't make this stuff up.

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All animals are equal but some animals are more equal than others.
George Orwell, "Animal Farm"