The cost of selling off its stock of its old model and tooling up for the new-style London taxi dented cab-maker Manganese Bronze’s half year profits as the leading manufacturer of the distinctive black cab continues to look to China for future growth.

Announcing its interim results for the six months to 31 January 2007, the company said it had successfully launched the new TX4 taxi in October. Also, its joint venture with Geely Automobile Holdings to form the Shanghai LTI Automobile Company to produce London taxis in Shanghai, as well as a limousine style variant of the London taxi and two large saloon cars, was granted shareholder approval in January.

UK taxi sales were up 21.3 per cent to 1342 vehicles (2006: 1106) while operating profit at £1.0 million (2006: £1.2 million) included run-off cost of £0.7 million to sell the last of the old TXII taxis. Higher depreciation charges were due to TX4 development and tooling costs of almost £5.5 million, which will be written off over five years.

Manganese Bronze chairman Tim Melville-Ross said the company had enjoyed “a first half of significant achievement” with the signing of the Chinese joint venture and the launch of the new taxi which, he said, had been very well received by the taxi trade. “We expect continued demand for the TX4 to drive sales higher in the second half,” he said.

Significant progress is also expected in China with the transfer of Manganese Bronze intellectual property to Geely, and the preparation of the Shanghai facility for the start of production.

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