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Improvements in efficiency, careful cost cutting,
together with steady sportscar sales and increased
3rd party engineering consultancy sales, contribute
to a £2 million profit for Lotus Group International
Ltd, (LGIL). Investment into R&D and new products
rises by 95%.
Lotus Group International Ltd, which includes
Group Lotus plc, the global sports car manufacturer
and engineering consultancy, has filed and had
published its financial results for the year ended
31st March 2008:
Commenting on the latest financial figures, Mike
Kimberley, Chief Executive for Lotus Group
International Ltd and Group Lotus plc said, “These
results are a tremendous turnaround achievement for
Lotus. I would like to thank all Lotus staff for
their exceptional dedication and hard work to ensure
the effective turn-round of the business. We are
also tracking our strategic five year plan which
enables 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.”
Key commentary for the above figures:
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LGIL increased its cash reserves
from 2006-7 by over 1200% from £640,000 to
£8,223,000, thanks to the shareholders’ support
of the new management.
-
By achieving the £2.023 million
profit, LGIL has exceeded the first year target
of its strategic Five Year Plan.
-
Investment in Research and
Development and new products has risen by 95%.
This investment includes advanced engineering
research and development into future
technologies and capitalised R&D into new
product development including the new Lotus
Evora and updates to the current Lotus line up
of the Elise, Exige, Europa and 2-Eleven.
-
Over the last financial year,
Lotus Cars introduced three new market
derivatives to its small vehicle platform: the
Elise SC, Exige S, with 240 hp Performance Pack
and the Exige Cup 260. These three versions of
the award winning Elise and Exige are selling
well in the global market.
-
The exceptional success of the
2-Eleven track car required production to be
increased and transferred from Lotus Sport to
the main Lotus assembly facility at Hethel.
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New markets were opened
successfully during the year in South Korea,
Thailand and Estonia.
-
Lotus Engineering, the company’s
high technology engineering consultancy
business, grew its global third party customer
base and was awarded with new and valuable
contracts worldwide – 340 projects with over 140
clients. Lotus Engineering Inc. in the US made
record profits and Lotus Engineering Malaysia
returned to profitability. Further expansion
overseas took place including the opening of a
sales office in Japan and setting up a
subsidiary in China.
-
Customer demand has lead to the
creation of new departments within Engineering,
especially focused on biofuels, electric and
hybrid electric vehicles. Over the next year,
six different electric and hybrid demonstration
cars, using different technology, will be
delivered to different global customers.
-
In January 2008 the first
product from Lotus’s relationship with Youngman
in China, the Europestar, was launched in
Beijing. Lotus’s collaboration with Youngman and
Proton continues with various other projects.
-
A major strategic alliance was
initiated and formally signed with King Abdullah
Centre for Science and Technology (‘KACST’) in
Saudi Arabia and is progressing very positively
with Lotus and Proton Joint teams.
Looking to the future:
- The new financial year has seen the
acquisition of a key strategic supplier, Holden
Aluminium (Worcester) Limited, which has become
Lotus Lightweight Structures Limited. This
additional facility, which complements the
facilities and IPR at the Hethel Headquarters,
supplies the Lotus lightweight, high technology
chassis for Elise, Exige, Europa and for the new
Lotus Evora which was unveiled at the British
Motorshow in July 2008.
- The Lotus Evora, the first all new Lotus in
13 years is a 2+2 mid-engine V6 sportscar and
first deliveries to customers are expected to
commence in Spring 2009.
- New markets are being developed in China and
the Gulf States for Lotus Cars.
- In the forthcoming year, a sales and
technology alliance venture will be set up in
India to deal with the increasing level of work
and enquiries from our automotive industry
customers.
In summing up, Mike 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.”
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