Lotus Cars has announced it is on track to make a full year’s worth of before-tax profit before the end of the 2017/18 financial year.
With a profit improvement of 10 million pounds, before tax in the first half of 2017, Lotus says it is now a self-sufficient and sustainable business, thanks to increased sales in Europe and the US.
The company adds that it has finished the most recent financial year “on plan”, with “positive EBITDA (earnings before interest, taxes, depreciation, and amortization) of £2.0m, a major achievement compared to 2015/16 where a £16.3m EBITDA loss was recorded.”
Though its earnings for the last financial year was still in the red (£11.2m loss overall in FY16/17), it’s a major improvement over the £41.2m loss it recorded in the previous financial year.
It can also thank a 57 per cent increase in Mainland European sales, as well as six times as many sales taking place in North America.
Lotus CEO Jean-Marc Gales says the announcement is an important milestone for the brand.
“This is a proud moment for Lotus and to have achieved so much is testament to the hard work of all our staff,” Gales says.
“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.”
Underpinning this is the recent announcement that Geely Holdings has bought a majority stake in Lotus’ business, meaning the classic Brit brand now has the financial backing of a growing company.
Gales says this transaction” 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.”