Manganese Bronze Holdings PLC

1
Manganese Bronze Holdings PLC

• Results for the year ending 31 July 2004

2
2004 Highlights

• Taxi sales up to 2,494
• Underlying Vehicles division profits up
• Zingo liked by passengers but losses continuing
• China LOI and Mexico license signed
• Head office and pension costs reduced
• MO London site sold for 7.9m
• Pension deficit reduced
• Investment in USA

3
2004 Financial Overview

• Losses reduced from 10.2m to 1.2m
• Vehicles division 4.3m profit
• Zingo losses 4.1m
• Zingo impairment provision 2.6m
• Net debt 1.7m
• Final dividend 2p

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Results
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Gearing
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Taxi Sales
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UK Taxi Market

• UK taxi sales 2,271 (2003 2,253)
• London market improving
• Production back at 55 per week
• 2nd review of Conditions of Fitness
• Proposed emission controls in London
• Warranty cost increase
• Retail, parts and service revenue improved,
  finance down

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Overseas

• 194 taxis sold in US to date
• 4.7m financing for LTNA MBH take 10 stake
• Petrol engine program funded
• China LOI signed with Bluestar and Lanzhou
  government
• Project proposal submitted and negotiations with
  Chinese government ongoing
• Mexico license signed in March work ongoing to
  establish production facility

9
Zingo

• Strong growth in first half
• Growth stalled in 2nd half
• Cost base halved
• Driver numbers limit to revenue growth
• Passenger hails increasing again
• Exploring ways to increase driver numbers
• Impairment provision of 2.6m

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Electric Vehicles

• Mercury electric delivery vehicle project sold
  for small surplus over book value
• 2 hybrid taxi prototypes completed 3rd prototype
  to be delivered in January 2005
• Development planned to continue through 2005 with
  Azure Dynamics

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Property

• MO Holloway Road site sold for 7.9m
• Short leaseback to mid 2006
• New site acquired on long leasehold for 4.6m
  providing better facilities and more space
• Move planned in 2006
• MO Bristol dealership closed and site sold
• Birmingham and Ipswich properties remaining from
  Components division sale to be sold lease break
  points in August 2005

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Pensions

• Final salary scheme closed in 1995
• SERPS transfer completed in December 2003
• Monthly contributions reduced to 100k
• Deficit reduced to 6.4m from 10m

13
Strategy

• Focus on core taxi business
• Establish overseas manufacturing operations to
  lower product costs and exploit export
  opportunities
• Make Zingo London operation profitable then
  license overseas and into different market
  sectors

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Manganese Bronze Holdings PLC

• Results for the year ending 31 July 2004