MG Rover is on track to achieve its target to break even next year having drastically reduced pre-tax losses.
Today the group announced results for the 8 month period to December, 31 2000 which showed pre-tax losses of £254m, on a turnover of £961m. The losses are less than half the operating loss suffered in 1999 (£780m). It ended the year with £329m in the coffers.
MG Rover says this represents a "significant" improvement in the underlying business performance. The overall year end cash position of £329m was ahead of the business plan and included the £200m long term loan from BMW.
Year-end retail sales of 111,800 units was also ahead of the business plan by 900 units.
Kevin Howe, chief executive, said: "Our 2000 performance was better than our business plan in all respects and represents a major step towards our target of overall business profitability. During the year we have made progress in many areas. We reduced by more than half the operating loss of the business, consolidated our production on the Longbridge site, entered new overseas markets and introduced five new models to our existing MG and Rover product portfolio."
Objectives for 2001 include: