Lotus turns to profit

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Announcing its financial results for the year to 31 March, the auto engineering consultancy and sportscar manufacturer Lotus has reported a return to profit.

Following a £4.9 million loss in the previous year, the Norfolk based firm posted a £2 million profit this time around although turnover fell to £109 million (£133m). The company said improvements in efficiency and careful cost cutting, together with steady sportscar sales and increased third party engineering consultancy sales had contributed to the group’s profit. Investment in Research and Development and new products grew to £12 million (£6m). Commenting on the latest financial figures, chief executive Mike Kimberley (pictured) said the results were a tremendous turnaround achievement. The group was also tracking its strategic five-year plan “which enabled Lotus to deliver an exciting new range of vehicles, develop and sell new advanced technologies through our extensive global operations and engineering client base and ultimately put Lotus on a greener and firmer footing and a consistently profitable commercial basis for the future.” Summing up, Kimberley said, “Clearly we are very closely watching the state of the global economy, and it is obvious that the world is changing very rapidly. Lotus, by being small and flexible, is set to deal with the new demands from our global consumer and business customers and over the last few months, the demand for our green and environmentally sustainable technologies has increased, with many of the world’s car companies working with us on alternative fuel vehicles, electric and hybrid vehicle solutions and lightweight structures. “Lotus is now recognised as a world leader in research and development in these exciting areas of high technology, green and sustainable driving and we have a duty to share our advancements with the rest of the automotive industry for the sake of the future of personal transport and the car. We are proving that it is possible to have a guilt-free car in the future with desirable and enjoyable levels of performance, economy and sustainability and Lotus is one step closer to this utopian solution. Lotus has taken the necessary steps to reduce the impact of the global financial crisis and will continue to do so.”