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Stock issue pushes TVR to £11m loss

TVR made a loss of more than £11m last year, compared to £997,000 in 2003, while turnover was down 11% to £16.7m.

The British sports car manufacturer, bought by Russian millionaire Nikolai Smolenski last July for £15m, had ordered an investigation into the valuation of stocks in its previous financial statements. This resulted in around £8m of stock being written off the accounts.

Smolenski purchased the Blackpool based company for a reported £15m and has been recently linked with a bid for MG Rover, but according to the report, the directors have received assurances that continuing funding will be available to support the company’s future growth.

In February, the company was forced to lay off 90 staff, almost 20% of its workforce, the majority from the bodyshop at the factory, claiming it was over manned in some departments. Orders are also rumoured to be down as customers wait for new models due next year.

Ben Samuelson, its managing director, has reportedly quit the carmaker following a fallout with Smolenski. However, the company has not yet confirmed this.

In April it invested in a new flagship 20-car showroom in West London as it looked to “take TVR to the next level” and increase awareness of the brand and changing model line-up.

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