RE: Fortunes of Lotus on the up!
Friday 11th August 2017
Now PH knows very little, really, making even the simplest of press releases somewhat of a challenge. When it’s a financial press release, however, we really start to struggle. But bear with us, as it sounds like a lot of good news for Lotus. And if it’s wrong, please tell us where...
Under the banner of ‘Lotus delivers radical financial turnaround’, the important numbers from Hethel are as follows: Profit Before Tax has improved from a loss of £41.2m in the Financial Year (FY) 2015/2016 to £11.2m in 2016/17, with an improvement in the Profit Before Tax of £10m for the second half of 16/17 compared to the first six months. The Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) of Lotus was £2m for 2016/17, which looks very good against a £16.3m EBITDA loss for the previous financial year. This has been thanks to a 57 per cent increase in European sales and six-fold rise in the US; there are now 215 Lotus dealers globally too, a rise from 138 in 2014.
Fortunes of Lotus on the up!
More cars being sold, an improvement in Profit Before Tax and more said to be on the way
So it looks like the new model blitz has been a success! Clearly there is still progress to be made but there are a lot of positive signs here. Jean-Marc Gales said of the news: "We have emerged from the last three years a fitter and more effective business, where we are fast in bringing new sports cars to market and agile in adapting to new opportunities. We are now in a perfect position to develop the next generation of Lotus sports cars". What will those be? Well we know an Evora Roadster is on the way, plus there’s the SUV as well, and a new Elise is rumoured for around 2020 too. What else would you like to see?
Exciting times ahead for Lotus by the sounds of it then; we can’t wait to see what comes next!
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Discussion
CitTone said:
An SUV......gods help us all.
My thoughts exactly. I want to see Lotus as a profitable, successful business - but not like that. More than anyone else I can think of, an SUV really does not fit with the Lotus brand.Great news on the improved fortunes though. Some will criticise Lotus for the regular "new" model introductions, but right now they're delivering quality as well as quantity and the entire range seems to be absolutely brilliant. The Evora roadster looks like another beautiful piece of kit, how did I miss that story?!
Year on year comparisons have to be viewed cautiously for a company that has had a turbulent time in recent years. Really need to look over the past 5 years to see trends in volume and profitability.
Profitability is also difficult to judge as you need to understand the reason for change. Is it due to higher selling price and volume? Efficiency gains? FX? Or just that they have cut R&D and so amortisation has reduced (which is not necessarily a good thing).
In summary: accounting information very difficult to interpret without much more detail.
Profitability is also difficult to judge as you need to understand the reason for change. Is it due to higher selling price and volume? Efficiency gains? FX? Or just that they have cut R&D and so amortisation has reduced (which is not necessarily a good thing).
In summary: accounting information very difficult to interpret without much more detail.
Max_Torque said:
Lets face it, niche sports cars are not a sustainable business. Once you've sold an Elise / Exige to the 11 people who want one, then what?
Add in the increasing rush towards eMobility and Lotus will need to really pull something from the bag to survive imo.
In terms of product, I'd imagine anything Tesla can do, Lotus could do. Add in the increasing rush towards eMobility and Lotus will need to really pull something from the bag to survive imo.
In terms of overall demand for 'Lotus like cars' - well they never did sell to the people who buy a car like they buy a washing machine. The market for MX-5s, Boxters and Audi TTs hasn't exactly gone away, has it?
Good news to hear, but almost certainly a sign of another impending global crash - Lotus have the remarkable ability to time their recoveries just as the economy tanks.
The SUV has been on the board for some time, to be built in Asia - it looks very much like they know what to do with the brand, which I'll take as a good sign.
t being said by the same people. May as well just copy and paste from the last one.Great news that LOTUS are still surviving, I think legislation may be moving more in their direction now, light weight and efficiency is key surely. LOTUS will be well place to go electric too, after all that's how Tesla started. SUV? eh, no does not fit for me. What would I like, perhaps a 21 century take on the 60's elan..........maybe some retro's - imagine a LOTUS Elan SE B.R.M. brought a bit more up to date with say, 250bhp. Or an Elite (50's style). People would pay £100k for a factory recreation I am sure.
Sure the brand would move on with new models but the Brand could reinforced by reminding us where it all began.
Sure the brand would move on with new models but the Brand could reinforced by reminding us where it all began.
Tuna said:
Max_Torque said:
Lets face it, niche sports cars are not a sustainable business. Once you've sold an Elise / Exige to the 11 people who want one, then what?
Add in the increasing rush towards eMobility and Lotus will need to really pull something from the bag to survive imo.
In terms of product, I'd imagine anything Tesla can do, Lotus could do. Add in the increasing rush towards eMobility and Lotus will need to really pull something from the bag to survive imo.
In terms of overall demand for 'Lotus like cars' - well they never did sell to the people who buy a car like they buy a washing machine. The market for MX-5s, Boxters and Audi TTs hasn't exactly gone away, has it?
Good news to hear, but almost certainly a sign of another impending global crash - Lotus have the remarkable ability to time their recoveries just as the economy tanks.
The SUV has been on the board for some time, to be built in Asia - it looks very much like they know what to do with the brand, which I'll take as a good sign.
Very few Porks are bought for driving dynamics either.
Lightweight development should play to Lotus strengths, if they can exploit that soon.
Max, can you hurry up and make EVs interesting!
Max_Torque said:
Lets face it, niche sports cars are not a sustainable business. Once you've sold an Elise / Exige to the 11 people who want one, then what?
Add in the increasing rush towards eMobility and Lotus will need to really pull something from the bag to survive imo.
A lotus buyer will not be looking for a EV. Add in the increasing rush towards eMobility and Lotus will need to really pull something from the bag to survive imo.
I have a Tesla on order from our daily driver as it ticks all the right boxes. I have a Elise for the weekends because it ticks all the right boxes.....but very different boxes.
My future lotus must have an ICE. If it doesn't then I won't buy one. I feel completely the opposite about my daily driver.
Let's stress that there is no "profit" - it is merely positive "earning before interest, taxes, depreciation and amortization", which is, maybe loosely, an indicator of cash flow from operations. My search for actual vehicle numbers behind the company's claimed 57% sales increase in Europe and "six fold" increase in North America, including the company's own press release, came up with nothing. Lotus should hope that Geely is at their door with a big handful of bitcoin cash, or yuan, or renminbi.
DPSFleet said:
LOTUS will be well place to go electric too, after all that's how Tesla started.
Lotus built the Tesla Roadsters (sans the battery packs) at the factory in Hethel then had them shipped to wherever Tesla had their battery factory to have the batteries fitted. Essentially the Roadster was an Elise/Exige EV. 
Scoobysaurus said:
Lotus SUV - Colin Chapman will be turning in his grave
Well, Lotus make great cars today because they are so driver focused that we (well I do anyway) forgive lots of slightly rough edges or big compromises. An SUV has to appeal to mainstream buyers, and therefore it needs to be refined and well loaded with good tech, and well packaged etc.... total departure and they won't compete with well financed and well resources companies..... Use the Geely links and a heavily reworked Volvo.... maybe and good luck to them.HustleRussell said:
Scoobysaurus said:
Lotus SUV - Colin Chapman will be turning in his grave
Don't think so, not if it turns out to be a good move from a commercial perspective.I'm no historian, but I thought he was the same as the old man Ferrari - the road cars are there to bring in the funds to go racing.
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