Sports car manufacturer Lotus hails a return to profitability
PUBLISHED: 15:48 11 August 2017 | UPDATED: 16:13 11 August 2017
Sports car manufacturer Group Lotus has hailed a milestone in the business after making a long-awaited return to profitability.
A strong second half to the year and accelerating sales in mainland Europe and North America helped the company deliver on its much-heralded turnaround plan.
It reported a EBITDA figure of £2m – a measure of a company’s underlying profitability – which represented an £18.2m improvement on the previous year.
It cut its full-year losses to £11.2m in 2016/17, an improvement on the £41.2m loss the year before. In a statement, Lotus said second-half pre-tax profits were £10m up on the first half of the year, putting it on track to make a full-year profit in 2017/18.
The EDP/EADT Top 100 company said the results allowed it to look ahead following its acquisition by Chinese car giant Geely, announced in May.
The car-maker, which is based at Hethel in Norfolk had repeatedly forecast it would return to profitability over the past year, as a three-year turnaround plan took effect.
Group Lotus chief executive Jean-Marc Gales said: “This is a proud moment for Lotus and to have achieved so much is testament to the hard work of all our staff.
“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.”