Manganese Bronze Holdings PLC
Second Interim Results September 2007
MBH Vision
Make the London taxi a global brand and sell a broad range of high quality vehicles.
Senior Team from March 2007
Tim Melville-Ross Chairman
John Russell Chief Executive
Mark Fryer Finance and Business Development Director
Peter Shillcock Chief Operating Officer
Principal Activities
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Designs, Manufactures, Sells and Finances the TX4 London Black Taxi
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Joint Venture factory in Shanghai
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Wholly owned factory in Coventry
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Wholly owned dealerships in London, Birmingham, Manchester, & Leeds: new and used sales, spares and service
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6 franchised dealerships
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Finance JV and profit share agreement with Lloyds TSB
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Parts distribution through Unipart
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2nd Interims Highlights
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Chinese joint venture finalised
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TX4 successfully launched
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New larger London retail facilities opened
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Significant profit improvement and strong cash generation
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IPR transfer complete – high international interest in Chinese produced TX4
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New LTIP proposal for management
Corporate Information
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Full UK listing
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MNGS
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FTSE Small Cap
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Shares in issue 25 million
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Market cap £206 million
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Sector: Industrial Engineering
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Broker Collins Stewart
Top Shareholders
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Tosca 25.1%
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Geely 22.8%
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Hermes 10.5%
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Lehman Brothers 7.8%
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Lansdowne Partners 7.3%
2007 Financial Overview
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Sales £106.9m (2006: £83.8m) – 28% increase
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EBITDA £8.6m (2006: £5.7m) – 50% increase
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EBIT £4.6m (2006: £2.9m) – 59% increase
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Cash flow from operations £12.2m (2006: £1.1m)
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Net funds of £9.1m (2006:£2.6m)
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Second interim dividend 3.5p (2006 final 3p)
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Pension deficit £3.0m (2006: £4.7m)
Taxi Sales
Gearing
Results - Cashflow
Dividends
MBH Vision
Make the London taxi a global brand and sell a broad range of high quality vehicles.
Shanghai LTI
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Real partnership
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MBH – 48% Geely – 52%
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Single shift capacity of 40,000 units
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4 vehicles planned
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TX4
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TX4 based limousine
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Limousine
Shanghai LTI
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Real partnership
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MBH – 48% Geely – 52%
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Single shift capacity of 40,000 units
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4 vehicles planned
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TX4
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TX4 based limousine
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2 saloon cars
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UK plant benefits from low cost components
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MBH distributes TX4 outside Asean region and limousine & saloon cars in UK
MBH Sources of Profit
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UK profit from existing Coventry operation.
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48% share of joint venture profits
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100% share of taxi vehicles bought at cost plus 1.5% and sold outside Asia.
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100% share on sales of limousines and saloon cars bought at cost plus 1.5% and sold in UK.
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100% share on lower cost components exported from China for use in UK manufacturing (less saving passed onto customers).
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Additional UK sales through lower prices of UK produced TX4.
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Finance, parts and service opportunities.
Key actions
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Develop the current UK business.
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Meet QCT targets for Chinese production.
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Establish International Sales, Marketing and Distribution capability for Chinese built TX4
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Establish UK Sales, Marketing and Distribution capability for Chinese built Limousines and Saloon Cars
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Establish global service, parts and finance operations.
Meet QCT targets for Chinese production
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Final approvals in June 2007
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JV fully operational and key roles staffed
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Key MBH appointments and UK support in place
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Robust project plan established
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Key milestones identified
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Plan resourced, feasibility verified and timing revised
JV Milestones
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Receive press tools – March 2008
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Supplier appointments complete - March 2008
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Factory modification complete - May 2008
Shanghai Factory Layout
Shanghai Press Shop
Shanghai Body in White
JV Milestones
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Receive press tools – March 2008
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Supplier appointments complete - March 2008
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Factory modification complete - May 2008
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Engine Programmes – September 2008 (This is the critical path and ambitious)
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Commission and Pre- Production – mid 2008
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Start of full production – end 2008
Market Development
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Initial organisation in place
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Extensive worldwide market study nearing completion
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Limited data available for worldwide market for taxis and private hire vehicles
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MBH detailed study of initial target markets in USA, W Europe, and China indicates 2.3m vehicles in use
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Further study to be conducted of Latin America, Asia, E&C Europe and Africa
MBH Vision
Make the London taxi a global brand and sell a broad range of high quality vehicles.