Insider Media Limited

Taxi cab manufacturer Manganese Bronze Holdings has secured record levels of international sales in the first half of 2011. The Coventry-based company said revenue had grown 16 per cent to £38.7m, but warned that UK sales were slipping.

Operating loss before exceptional items was reduced by 76 per cent to £0.2m for the six months to 30 June.

Manganese Bronze Holdings said international sales were up 323 per cent to 474 vehicles, including 300 vehicles to Azerbaijan.

However, the company said UK sales volumes were down 6.8 per cent to 748 vehicles, while UK break-even new vehicle sales volumes reduced from more than 2,000 to about 1,400.

The company said it had a "substantial" order book for the next year, but warned that difficult UK trading conditions were expected to continue, "particularly outside of London".

John Russell, group chief executive, said: "The board is encouraged by the group's return to revenue growth and cash generation, and a record level of international sales in the first six months of 2011. Given the underlying improvements in operations and the reduction in the group's net loss resulting from the major restructuring initiatives in 2009 and 2010, and strong international sales, the board remains confident that, despite continuing adverse UK market conditions, the group can return to profitability in the second half of 2011.

"However, the level of this profitability is directly linked to UK new vehicle sales volumes, which are difficult to predict in the current macro economic environment, and dependent upon progress on cost reduction in the Shanghai joint venture."