Lotus delivers impressive financial turnaround

Lotus has finished its financial year 2016/17 on target, finishing the year with earnings before tax of £2.0m, a major achievement compared to 2015/16 in which it recorded a loss of £16.3m.

Lotus reckons that the key to this turnaround has been the successful introduction of a completely revised product portfolio, with new benchmark sports cars within the Evora, Exige and Elise model ranges together with the new Lotus 3-Eleven.

Focusing on its core engineering strengths, Lotus says it is now producing its strongest ever line-up of cars, and says the results pave the way for future investment and the development of new models.

“This is a proud moment for Lotus, and to have achieved so much is testament to the hard work of all our staff,” said Group Lotus chief Jean-Marc Gales. “Our vastly improved profitability, together with an increase in revenue means that for the first time in many years Lotus is now a self-sufficient and sustainable business.”

Comprising of Lotus Cars and Lotus Engineering, the Norfolk based company improved quality, reduced costs and increased margins resulting in the best sustainable performance for the business for many years.

A vital part of this return to profitability has been the introduction of several new models based on the marque’s well-regarded vehicle architecture. Reflecting the company’s turnaround, these new cars are not only faster and more focused than the previous generation of sports car; they distil the essence of Lotus’ approach to intelligent engineering.

Jean-Marc Gales added: “We have emerged from the last three years a fitter and more effective business, where we are fast in bringing new sports cars to market and agile in adapting to new opportunities. We are now in a perfect position to develop the next generation of Lotus sports cars and the 850 highly skilled staff at our headquarters in Norfolk and around the world who have such passion for the business and are ready to take the next steps in the exciting history of the company. The recent announcement that the Zhejiang Geely Holding Group Co. Ltd has acquired a majority stake holding in Lotus provides an environment in which the company can flourish. This includes continuing the development of new vehicles and technologies, as well as growing sales internationally.”