Lotus Report Nearly £15m Of Losses

[Mark H]

Lotus chiefs have said the company is on course for growth despite reporting losses of almost £15m.

 

Accounts published today by the Hethel-based carmaker and engineering consultancy for the 12 months to March 31, 2009 show despite a 2pc increase in sales to £111m currency fluctuations, a pensions levy and provisions for bad debts resulted in losses of £14.6m.

 

While the weak pound benefited export sales it also resulted in losses of £7.7m as the value of loans to the company paid in US dollars and Malaysian ringgit rose significantly as sterling fell.

 

But Lotus chiefs said a “substantial portion” of the losses were recovered in the first quarter of the current financial year and that would continue if the pound climbs further.

 

Bosses also said the launch of the award-winning Evora model meant the company was better placed than most of its competitors to succeed in the downturn and the company had recruited an additional 150 manufacturing staff - a 30pc increase - to meet demand.

 

First orders of the Evora are expected to be delivered in the coming weeks, with production expected to reach 10 cars per day by the end of November and total sales of 1,200 forecast for the current financial year.

 

The company has also earmarked £20m for investment in its products for continued growth in 2009/10.

 

Luke Bennett, director of Lotus Cars, said: “We must be one of the few car companies in the world that is increasing production and recruiting staff to support increased demand for its products. Lotus has not been immune from the effects of the global economic downturn but fortunately we are better placed than most due to the timely launch of the new Evora.”

 

The company's engineering consultancy, Lotus Engineering, performed well with sales up by 23pc despite car manufacturers across the world cutting back on orders as demand for new cars slumped in the recession.

 

Paul Newsome, managing director of Lotus Engineering, added: “I am delighted with our sales growth which stems from developing new markets, growing the existing client base and focussing on green technologies, specifically those that are aimed at reducing CO2 emissions of vehicles.

 

“Lotus is unique in the automotive industry not only as a manufacturer of vehicles both for itself and third parties but also providing engineering consultancy services to other car companies around the world.”

 

The company made a dramatic return to profit in 2007/08 after a loss of almost £5m the previous year.

 

The publication of the accounts follows the departure of chief executive Mike Kimberley who retired last month due to ill health after undergoing surgery for a prolapsed disc in his back.

 

A permanent replacement is still being sought.

 

 

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