Taxi manufacturers LEVC describe last year as the ‘most challenging business environment imaginable’
Taxi manufacturers LEVC have described the last year of trading as the ‘most challenging business environment imaginable’ as latest accounts are revealed.
Despite a challenging year, the iconic Coventry based electric taxi manufacturers have however managed to cut pre-tax losses.
Reported turnover for the Geely owned London Electric Vehicle Company (LEVC) was recorded at £76m for the year to 31 December 2020, a drop from £143.4m from the previous period in 2019.
Sales of its vehicles were halved to 1,118 units in 2020 due to the effects of successive lockdowns and economic uncertainty reducing demand of the TX model. The launch of its new VN5 van in November was also hampered by the closure of vehicle dealerships, although vehicles did commence.
Notably, pre-tax losses reduced from £63.4m in 2019 to £35.8m in 2020.
Intriguingly there was also an agreement reached with Geely for the licensed production of a Chinese market version of the TX in the Yiwu factory for which royalty payments will be paid to LEVC.
In the Annual Report and Financial Statements signed off by Director Joerg Hoffman it describes the business environment: "Prior to Covid restrictions in March, LEVC was out-performing budgeted sales and profit targets, but the pandemic then made the most challenging business environment imaginable. However significant sales milestones, such as the 5,000th electric TX delivered, were still still achieved.”
The report goes on to add: “At the time of signing these Accounts the Group is seeing recovery of confidence in the key London market. Accordingly, 2021 budget targets appear achievable after the expected very weak quarter 1 when lockdown measures curtailed normal business activity.”