Insider Media Limited

Manganese Bronze has reported a 4.8 per cent fall in turnover to £69.6m for the year to 31 December 2010. The Coventry-based taxi maker posted a pre-tax loss of £6.3m, slightly lower than the £7.3m posted last year.

Over the year, the company carried out significant restructuring at its Coventry site, which led to a £3.5m exceptional cost. Net debt grew from £5.1m to £14.4m in the period.

John Russell, group chief executive, described 2010 as "another difficult year" for the company's UK taxi manufacturing operations.

The company did show some signs of improvement in its overseas markets, with international sales volumes up by 8.1 per cent to 226 vehicles.

Manganese Bronze currently has a joint venture agreement with Chinese car manufacturer Geely Automobile Holdings and Shanghai Maple Automobile Company, to produce the London taxi in Shanghai.

Although the board of Geely rejected in March 2010 the proposed placement of 20 million Manganese Bronze shares, the company notes that the relationship is critical to its future prospects.

Regarding the company's future as a viable business, is said: "Current economic conditions create uncertainty, particularly over the level of demand for the group's products.

"For these reasons, a sensitivity analysis has been performed on the group's forecasts and financial projections to take account of changes in trading performance.

"This analysis shows that the group will be able to operate within the level of its borrowing facilities.

"As a consequence, and after making other relevant enquiries, the directors have a reasonable expectation that the company and the group have adequate resources to continue in operational existence for the foreseeable future."