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London taxi maker's sales fall sharply

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London taxi maker''s sales fall sharply

Post by Admin on Fri 15 May 2009 - 0:48

Shares in Manganese Bronze fell 22 per cent after the maker of London taxis reported a 19 per cent fall in sales for the four months to the end of April. The company, which in March scrapped its dividend after a “significant downturn” in sales, sold 699 vehicles in the period, down from 860 in the comparable period last year.

It blamed the macro economic backdrop, but pointed out March last year had been a record month for taxi sales. John Russell, chief executive, also said the decline was in line with expectations. He added: “Frankly, I am surprised that the shares have moved so much”.

The shares fell to a low of 47p after the dividend cut in March, when the group reported a loss of 14.2m. They closed yesterday at 98p. Manganese Bronze also said it would be taking part in the government’s car scrappage scheme, which begins next week and offers 2,000 to customers trading in vehicles that are at least 10 years old.

Mr Russell said up to 6,000 of the 21,000 cabs in London were more than 10 years old. He expected taxi drivers who had been holding back in anticipation of the scheme to seize the opportunity to renew their vehicles.

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Re: London taxi maker's sales fall sharply

Post by stf on Fri 15 May 2009 - 6:05

Brother when resetion finish then more drivers will buy new cabs. If by that time LTI is not gone bankrupt


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