LTI VEHICLES TURN THE CORNER FOLLOWING FOUR YEARS OF LOSSES
14 October 2005 - LTI Vehicles

Manganese Bronze Holdings PLC, the parent company of Coventry based LTI Vehicles, announced their results this week for the last financial year, August 2004 to July 2005.

Ian Pickering, Chief Executive of Manganese Bronze said, “Following four years of losses we have delivered a pre-tax profit of £1.6 million against the £1.2 million loss the previous financial year. We have completed the initial phase of the turnaround of Manganese Bronze and LTI Vehicles, manufactures of the purpose built TXII London Taxis.”

The Manganese Bronze group turnover for the financial year was £87.5 million.

Ian Pickering added, “We have a strong balance sheet which now gives us the resources to invest in our core UK taxi business and a clear growth strategy for overseas expansion. Our current trading position is encouraging with sales of new taxis ahead of the same period last year.”

LTI Vehicles are now the second largest wholly British owned vehicle manufacturer.

In their last financial year UK sales of the Coventry built TXII purpose built taxis increased by 6.2 per cent to 2,412 vehicles from the previous total in 2003/2004 of 2,271 units.

From January until the end of September this year LTI Vehicles sold 1,918 new TXII taxis to UK customers, a 13 per cent increase over the 1,695 units sold in the same period in 2004.

In September 2005, the new registration plate peak sales month, LTI Vehicles UK sales increased by 64.3 per cent with 309 new taxis sold as opposed to 188 sold in September 2004.

Matthew Cheyne, Sales and Marketing Director said today, “The growth in UK sales so far this year is very heartening and the significant increase in September sales was due to the introduction of the latest version of our TXII London taxi. The vehicle features an all-new suspension system designed for better driveability and handling with a significant improvement in the comfort of ride for passengers.”

The company also announced they would be investing £4 million in development over the next 12 months. This will include the introduction of a low emission diesel engine. The company already has a programme underway using operational prototypes with a hybrid
power source.

LTI Vehicles have also increased their investment in the United States by taking a controlling interest in their North American distributor. The USA is seen as having major market potential by LTI who already export their London taxis to many countries around the world.

LTI say they are also continuing to work towards securing a license from the Chinese government to manufacture and sell taxis in China.

However the financial position of the company could change in the next twelve months if the second limited review by Transport for London of the Conditions of Fitness, regulations that govern the type of vehicles that can be used in the capital, are changed. If the regulations are significantly watered-down it could open the door to conversion type taxis, not purpose built vehicles manufactured by LTI and Metrocab, being used in London in the future.

From: Miles Better News Agency

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