Manganese Bronze places shares for £9.4m boost

Manganese Bronze places shares for £9.4m boost

Jun 10 2009 by Tom Scotney, Birmingham Post


Black cab maker Manganese Bronze placed millions of shares yesterday in an attempt to raise £9.4 million to develop new technology and move into new international markets.

The Coventry firm placed 5,347,593 shares at an issue price of 187p a share yesterday, a discount of 19p on the closing price the day before the move was announced.

The firm is in the search for lucrative new markets after sales dropped catastrophically over the last year.

It has also become increasingly focused on foreign markets since establishing a joint venture with Geelys in China in 2006. After setting up a new production facility in Shanghai, commercial production of Chinese-manufactured taxis started in January and the sales launch took place at the Shanghai Motor Show in April.

The firm said it had signed non-binding agreements for a total of 8,000 vehicles over the next three years produced already through the joint venture which were destined for international markets. It predicted that by the end of a year distributing in China, the international sales would go above UK sales.

As well as developing new markets, the company said the money would be put towards creating new engines for taxis compliant with the latest EU emissions standards, and developing new environmental and technological upgrades for the cars.

Manganese Bronze chief executive John Russell said: “This placing will provide a solid basis for Manganese Bronze’s future growth. It will help fund the development of new international markets for the London Taxi produced by our joint venture in Shanghai.

“It will also help develop a new Euro V compliant engine to ensure London Taxis meet the highest standards of environmental compliance as well as funding development of green London Taxis. We welcome the strong support from a range of existing and new shareholders.”

Shares in Manganese Bronze fell consistently as the recession hit the automotive sector, until they reached a low of 47p in March after the firm cut its dividend following the announcement of a 19 per cent fall in sales over the preceding four months.

At the time, it blamed a spate of engine fires for causing the recall of thousands of vehicles that sent the firm into the red. They said the recalls had cost the firm £3.8 million. But the fortunes of the firm have recovered as the prospects for the sector have improved.




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“It will also help develop a new Euro V compliant engine to ensure London Taxis meet the highest standards of environmental compliance as well as funding development of green London Taxis. We welcome the strong support from a range of existing and new shareholders.”

This probably means yet another engine change for the LTI product. Every crap offering is sold as the best thing since sliced bread and then eventually we learn the truth. Do we ever really learn?

A bit like some taxi drivers I know who leave the trade to chase careers elsewhere only to end up back here as you seem to have done. Apparently we never learn Ahmed Looks like LTI are here for the long haul sir, they are in difficult times but so is everybody else.