TAX.L Regulatory News (TAX)

01 August 2014

Eco City Vehicles PLC

("ECV" or "the Group")

Trading Update and Strategic Review

Eco City Vehicles PLC, the supplier of the licensed Mercedes Vito taxi, provides the following trading update for the six month period ended 30 June 2014.

Further to the announcement made in June, trading has remained challenging mainly due to uncertainty caused in the London licensed taxi trade by the emergence of Uber as well as the Mayor of London's proposed introduction of zero emissions standards from 2018.

Revenue for the six months ended June 2014 decreased by 33% to £11.4m in the first half of 2014 (H1 2013 £17.0m) as new Vito taxi sales declined to 139 vehicles (H1 2013: 299). The Vito's share of the new London licensed taxi market reduced to 24% (2013: 44%).

However, demand for the Group's rental fleet has continued to grow and the rental fleet has been expanded by 30 units since 31 December 2013 to 75 units out on rent as at 30 June 2014 (31 December 13: 45 units). Net debt (being cash and cash equivalents together with long and short term borrowings) has reduced further to £2.1m as at 30 June 2014 (31 December 2013: £3.6m) reflecting the repayment of the Pension Scheme loan earlier this year.

As announced previously, additional funding is expected to be required in 2014. The board is also in the process of reviewing its strategic options for the Group, although such review does not include the consideration or solicitation of bids for the listed Group.

Enquiries: