Manganese Bronze Holdings Plc, the maker of London's iconic cabs, recalled about 400 of its TX4 London taxis and suspended sales of new models after discovering a defect in the steering box introduced in February.

The company said the suspension of sales will have a very material impact on the company's cash flows and that its financial position remained unclear until a technical solution was arrived at.

Trading in its shares has been suspended.

(Reporting by Karen Rebelo in Bangalore)