Manganese Bronze are the makers of the iconic black cabs we have in London and on Tuesday they reported that they have made close to a £4 million loss and are warning that there will be more.
They own London Taxi International and they saw their shares decrease by 34 per cent, however they expected a greater loss as a result of an accounting mistake caused by their new IT system.
Manganese has said that the reason for the accounting error was down to a combination of “system and procedural errors” which means they underestimated their losses by £3.9 million over several years.
The company have decided to push back their half year results till September as a result of the blunder. The mistake was that the system hadn’t transferred many transactions.
This is a huge blow to the company because they have also been hit hard by the recession as there has been reduced demand for their services. Manganese has said that times are “challenging” and they are continuing t operate at a loss.
Many new drivers are reluctant to enter the sector because of the lack of business and the amount being a taxi driver costs. There are many costs including UK taxi insurance and fuel costs and especially in certain areas within London there is the congestion charge.
Although they do expect sales to increase during the rest of the year they are unsure that it will be on the same level that they predicted, which damages their bank account even more.