Another victim of the recession could be the manufacturer of the iconic London black cabs Manganese Bronze who is looking for government aid to survive this very tough economic period.

 
City Desk

The future of the manufacturer of London's iconic black cab’s is in question following a pre-tax loss of £14.2million seeing its share price plummet by 9p to 58.5p.  The CEO of Manganese Bronze John Russell has according to reports approached the government for a "bail-out" to assist in "research in development spending on green technologies" and provide a lifeline to the company.

Sales of the TX black cab model suffered with only 1,951 models sold last year a drop of 37.5 per cent from last year.  Reports last year of the TX4 model suffering engine problems damaged the company with a recall of the models taking place.

John Russell the CEO of Managenese Bronze said to analysts in the city that the parent company London Taxis International was suffering from a "marked effect" on working capital.  The company is faced with a "significant increase in the risk of a loss of key suppliers", which could have "major funding consequences" if production was suspended.

The FT reported that:

"Manganese, which said it could operate within the current level of its borrowing facilities, has cut staffing by 20 per cent. Vehicle sales fell from 2,480 to 2,124, and 2009 volumes could be lower."

"It was forced to suspend its dividend after providing additional security over two properties to renew its overdraft facility of £2.5m until the end of the year."

John Russell, chief executive, said trading was "adversely impacted by the wider downturn in the automotive market" but confidence for medium-term prospects "continues to grow".

Total revenue fell 28 per cent from £106.9m in 2007 to £77.2m last year.

photo credit: London Daily News