Lotus revs up profits to £2m

Lotus sped into profit in 2007 despite being battered by the global economic downturn which cut turnover by 17%.

According to the accounts of Norfolk-based Lotus Group International, which is owned by Malaysian car firm Proton, Lotus reversed from a £4.9 million loss in 2006 to post £2 million net profit in 2007 on revenues of £108.8 million. It has a clever belt-tightening strategy to thank.

A fall in revenue was outweighed by a 24% decrease in total costs to £106.5 million. The US economic crisis and high price of fuel put the brakes on sales, which fell 4% to 2623 units.

This enabled Lotus to cut 148 production staff which saved £5.7 million.

Chief executive Mike Kimberley is believed to get a salary of £178,000. Proton has waived for the next year repayment of a £7.8 million loan which Lotus owes it.

Lotus sees a boost from Evora, its first new car in 12 years, which launched at the London Motor Show in July.