Page 27
Call Sign August 2011
TX4 manufacturers Manganese Bronze
Holdings announced their interim
results on 29 July, too late for publica-
tion but a spokesperson told Call Sign
that they expect the shape of the busi-
MANGANESE
ness to remain unchanged with condi-
tions difficult in the UK, but strong
internationally. The continued weak-
ness of sterling is unhelpful for costs,
INTERIM RESULTS
particularly with regard to engines from
Italy. They expect further working capi-
tal improvements, which along with
And will MBH become Geely's European distributor?
strong international trading, are reduc-
ing the company's debt exposure. In the
unlikely at this stage without a substan-
net debt position, they say they view
medium term, there remains the possi-
tial regional pick-up. Assuming around
this as very positive and see cash gener-
bility of a further order from Azerbaijan
1,600 units sold in the UK vs their fore-
ation upside potential over current fore-
in addition to the 1,000 taxis contracted
cast of 1,900 equates to a possible
casts of a £2.2m reduction in year-end
for delivery this year. Their 115p target
downside of £1m at the PBT level, all
net debt. January/February will see the
price remains unchanged.
things being equal.
usual peak in the working-capital cycle,
* At the four-month stage, UK sales
* At least partially offsetting the UK
assuming no follow-on Azerbaijan order,
were down 5.2% and MBH see little in
weakness is a strong overseas business,
but the company is positive it can man-
UK market conditions to indicate a
where orders of 1,500 in the year to date
age this peak through existing facilities.
change of tempo for the better. Sales in
compare with the original forecast of
* There remains the possibility that MBH
the southeast look to have been reason-
1,400 over the year. Although revenues
could be appointed as Geely's European
ably strong, on target for 1,000 units
per unit of the SLTI overseas variant are
distributor, as mentioned in the Q1 trad-
ordered over the full year, but demand
much lower than the UK model, a
ing statement. This would present a very
outside London is likely to be subdued
strong second half could be useful. With
significant growth opportunity. They
in line with the rest of the retail econo-
regard to the Azerbaijan order, half of
claim that the company's relations with
my. Their UK forecast of 1,900 looks
the initial 1,000 unit order has either
Geely remain very good.
been delivered or is in build in
* They maintain their 115p target price
THE WORLD ACCORDING TO
Shanghai. Discussions about follow-on
based on economic value analysis
TOM WHITBREAD (CONTINUED)
orders following the initial deliveries
(EVA). MBH are at an early stage of the
have been promising.
recovery cycle, so take the 2012E fair
On our streets, you do not see police
* The first four months saw an improve-
value of equity based on a WACC of
officers patrolling and deterring criminals
ment in working capital, ahead of their
8.4% and a post-tax ROIC of 10.7%. The
from committing crimes, you have unfit
own forecast of flat working capital over
main risks to their view are that UK
PCSOs who spend most of their time chat-
the course of the full year. Given con-
sales fall further without being offset by
ting on personal mobile phones or hiding
cerns in the past about the company's
international sales.
around corners in case they become
involved in a confrontation with members
of the public.
How much longer is the taxpaying pub-
lic going to allow incompetent MPs to send
our money out of the country, while hospi-
tals, police stations and coastguard stations
close putting lives at risk while old people
are dying in hospital of bedsores and mal-
nutrition, both of which can be easily
avoided with the correct care.
After being ridiculed for supporting the
Conservative party for the last 48 years, I
can now see no difference in the incompe-
tence of the different political parties. So
come the next General Election, instead of
voting I will stay at home and watch CSI on
the television!
I just feel so sorry for the future we are
leaving our children and grandchildren
because England is fast becoming a third
world country. If you think I'm just ranting
on, look at the past 30 years at what I've
said and published and how much of it has
become reality.
Well, now the News of the World has
gone, somebody has got to speak out to try
and keep the "Great" in Britain...
Tom Whitbread
DaC Board member
