Cab firm hails profits

A glittering profit performance this year and next by black cab maker Manganese Bronze has been forecast by stockbroker Collins Stewart. It reckons the pre-tax figure will jump from £8.2m to £9.25m this year and £11.75m in 1998-99. Three years ago profits were £2m. A bullish report on 1996-97 sales – up 11% at 2,822 […]

A glittering profit performance this year and next by black cab maker Manganese Bronze has been forecast by stockbroker Collins Stewart.

It reckons the pre-tax figure will jump from £8.2m to £9.25m this year and £11.75m in 1998-99. Three years ago profits were £2m.

A bullish report on 1996-97 sales – up 11% at 2,822 – put fresh life into the shares which had fallen £1 to around 420p on tiny trading volumes. And there was a further upward surge on Collins Stewart’s estimate that the shares are worth £6.

The broker forecasts earnings per share would rise from 34.7p last year to 38.8p this time and 47.2p the year after. In 1995-96, the company made £6.2m pre-tax and earned 26.6p a share.

Manganese’s £23,000 Fairway cab dominates in London where it has 65% of sales. The strong pound has little impact on the company as the cab’s Nissan-made engine and gearbox are imported from Japan.