24th Sep 2014 16:57
LONDON (Alliance News) - Eco City Vehicles PLC, the developer and supplier of the London-licensed Mercedes Vito taxi, Wednesday said administrators have been appointed for its One80 and KPM Taxis subsidiaries.
One80 owns the intellectual property rights to the rear-wheel steer technology and other design rights used on the Mercedes Vito taxi. Production of the Mercedes Vito is currently on hold due to existing levels of stock of completed vehicles, Eco City said.
Last week, the company said that its One80 subsidiary was set to be placed into administration and was in talks with potential funding sources as it faces challenging trading conditions. At the time, it said a lack of production revenues and the impending legal case against One80 had forced the subsidiary to notify shareholders of plans to appoint an administrator.
The company released a statement on Tuesday, saying that it was evaluating its options after Mercedes-Benz informed the company that it has opted to terminate its stocking facilities and trading agreements with Eco City's subsidiary KPM Taxis PLC with immediate effect.
Eco City Vehicles said Wednesday that both its two principal subsidiaries, KPM and One80, have now been appointed administrators.
Alan Bradstock of Accura Accountants Business Recovery Turnaround Ltd has been appointed as administrator of KPM, and Robert Croxen and Colin Haig both of KPMG LLP have been appointed as administrators of One80.
Last month, Eco City Vehicles blamed taxi booking app Uber and London Mayor Boris Johnson for causing its market to remain challenging in the first half of the year. Revenue in the six months to June 30 declined by 33% to GBP11.14 million, down from GBP17.0 million a year earlier, as new Vito taxi sales declined to only 139 vehicles, compared with 299 in the first-half of last year. It said the Vito's share of the new London licensed taxi market fell to 24%, from 44% a year earlier.
The company's stock, which has been suspended since mid- September, last traded at 0.325 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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