London Cab maker Manganese Bronze reveals $6m accounting error image

Manganese Bronze, the iconic cab manufacturer in London has said that its 3.9 million pounds ($6.1m) of black hole has been found in its accounts that led to one month’s delay in releasing its half-year results.

The company explained in its statement that due to a combination of system and procedural errors, numerous transactions related to 2010, 2011 and some residual balances from earlier system were not well processed via new IT system.

The company further added – the cumulative effect of these errors is an estimated 3.9 million pounds understatement of historical losses which go back over several years although the work to apportion the loss between previous years is not yet complete.

Manganese Bronze is owned by Geely Automobile Holdings Ltd by 20 percent. It is the largest private automaker in China that owns 20% of its holdings in this company. The company is in plans to release its half-year results on or prior to 24th September. The company also said – “trading in the first seven months of this year had been difficult and remained challenging, and that it expects to report net losses for the first half of 2012 that are substantially higher than the corresponding period last year”. Higher sales are expected by the company in second half of 2012, but it is still evaluating about whether or not it will stabilize the full year results.

Manganese Bronze revealed that by the end of June, the company had received 2.8 million pounds on its decided banking facilities. The company kept receiving support from its bankers and Geely Automobile Holdings.