Black cab-maker Manganese Bronze is planning to cut costs after revealing a rise in losses.
The Coventry based firm was hit by a charge of more than £4 million last year as a result of an accounting error, and has continued to slip further into the red in the first half of 2012.
The group saw pre-tax losses increase to £3.6 million in the six months to June 30, compared to £2.4 million in the first half of last year, after seeing revenue fall by more than 11 per cent to £34.3 million.
UK sales volumes fell by 22.9 per cent to 577 vehicles across the period, which could not be offset by a 6.3 per cent rise in international sales to 504 vehicles.
John Russell, group chief executive, said the board would be looking at its cost base in light of the disappointing performance.
He said: “The board is disappointed by the group’s results for the half year, which reflect continued challenging trading conditions in the UK.
“Trading in the period since June 30 has been broadly in line with revised expectations and better than the level of trading experienced in the second quarter.
“The board expects that sales in the final quarter of the year will be at similar levels to the current running rate but this will not allow the group to return to profit in the second half of the year.”
“In light of the continuing weak economic outlook for the UK, the board is taking steps to review its cost base with the objective of achieving a breakeven or better result in the new financial year.
“However, the level of this profitability is directly linked to UK new vehicle sales volumes, which are difficult to predict in the current economic environment.”