Black cab manufacturer Manganese Bronze Holdings has admitted that despite a promising start to the year trading has slowed, saying business confidence remains weak due to the continuing concern over the macroeconomic situation.
As a result, UK sales in the first half of the year are expected to be below those of the previous year. However, sales in the second half of the year are anticipated to be stronger than in the first half due to the positive impact on demand for the new Euro V TX4 taxis in London arising from the Mayor's Air Quality Strategy.
The 500 vehicles for Azerbaijan that were delayed from 2011 were shipped and paid for in March 2012 and further international orders are anticipated, the firm said.
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The slowdown in UK sales has increased the stock of new vehicles and, accordingly, the group's cash flow is less than previously anticipated.
The share price fell 5.08% to 28.00p by 14:17.
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