A company that makes London’s black cabs has warned investors that it has understated its financial losses by £3.9 million due to a faulty supply chain IT system.
Coventry-based Manganese Bronze Holdings said that a combination of "system and procedural” errors meant the system, introduced in 2010, failed to process transactions and balances in 2010 and 2011.
“This problem led to the over-statement of stock and under-statement of liabilities in the financial statements of previous years,” Manganese said in a statement. The company is now determining how the losses should be split between its prior financial years.
The company declined to disclose the supplier of the IT system in question, or whether or not it will continue to use it.
Maganese said that it will posptone reporting its latest financial figures. It also warned investors that it suffered difficult trading circumstances in the first half of the year.
The company’s shares, which have lost a fifth of their value since the start of the year, plummet from 25p on Monday to 16p on yesterday’s close as a result of the news.