Taxi Driver Online

Just who is driving this taxi maker?


WE are in the middle of the season for annual reports. On Thursday alone 15 came out. Shareholders normally throw these bulky publications straight in the bin when they arrive, or turn to the remuneration section to tut over how much directors have paid themselves.

There can be other gems hidden away. For example the report of Manganese Bronze, maker of London’s black cabs, contains a startling insight into the tightrope company managements have to walk when coping with falling sales, cautious banks and watchful pension trustees.

Like most groups with exposure to the automotive market, Manganese has had a grizzly time of it. It posted a £12.3m after-tax loss for the 2008 calendar year, compared with a £3.4m profit the year before. Chief executive John Russell described the market as “challenging”. The annual report shows, however, that Russell did manage to persuade the company’s bank, HSBC, to continue to provide support, but at a cost.

It said it would keep the company’s £2.5m overdraft facility in place, but only if it was granted a debenture on the company’s assets. This means first call on the assets if Manganese goes bust – rather in the way a mortgage company takes your house if you default on the loan. But the process is no longer that simple. There are three in the marriage – the company, the bank and the trustees of the company’s pension fund.

Manganese’s pension scheme is in deficit, and, thanks to the powers bestowed on them by the pension regulator, trustees can now try to stop any deal that might affect their future income. Management asked the trustees if they were happy with HSBC getting security over the company’s assets. They gave the green light, but only if the board agreed to suspend the final dividend to shareholders. It did.

It’s a tangled web, and shows that these days there are complicated and conflicting demands on boards. None of this manoeuvring has done much for Manganese’s share price, however. It closed at 72p last week, having lost 85% of its value in the past year. Investors are still wary of exposure to car markets – and with good reason.

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IDFIMH

Playing the stock market has it's ups and downs. Shareholders should not be paid out at the expense of everything else, so, I entirely think it was a fair decision by the board. How can debentures be paid out anyway if the company is running with a loss on the table. Albeit the loss is on the profits from the year before and by all accounts the year before too.

It annoys me when people who play the stock market complain because they don't get paid out if a company goes bust e.g banks. They seem quite happy with the risks when they are in their favour but not when they aren't. IMO you should never put money into stocks & shares unless you can afford to loose it.

It would appear even with the overdraft facility still in place they are going to struggle. Unless of course the whole country has to go WAV and pretty damn soon and of course providing they have a suitable vehicle. The dft consultation could be a miracle in disguise for companies like this one

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Note to self: Just because it pops into my head does NOT mean it should come out of my mouth!!

has all those Easter eggs, gone to your head, a WAV for everyone

If the DfT had their way, then yes.

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IDFIMH

LTI went through all of this before in the early 1990's, and that was when they had no backing from Manganese Bronze Holdings.

They'll pop out the otherside just like they did in 1994.

If LTI went bust, it would be interesting to see what WAV London, Manchester etc would adopt. They all say that LTI is the only credible vehicle at present

Stop fecking around, and get out now . .. if you don't . . . .

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

Skippy I never said that I thought everybody should have a WAV. I also never got any easter eggs to go to my head

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Note to self: Just because it pops into my head does NOT mean it should come out of my mouth!!

The e7 and merc must be having an effect on the LTI sales, i am not to sure they will pull throw this time.Also the tx4 has had some problems and i have heard tx drivers say the tx2 is better that the new model(TX4)