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Lotus future questioned as losses speed past £167m
By Christian Sylt7:53PM GMT 10 Jan 2014
Lotus future questioned as losses speed past £167m - Telegraph

The future of motor marque Lotus has been called into question after the company made a £167.8m net loss in 2013 and breached its banking covenants.

The Norfolk-based manufacturer, famous for its Elise and Esprit models, saw car sales in the year to March 31, 2013, fall by 40pc to just 1,177. Engineering revenue also fell, by 37.5pc to £22m, giving Lotus a turnover of £89.9m, while costs increased 4.6pc to £250.6m.

It left the company with net current liabilities of £175m and a shareholders’ deficit of £111.4m, which drove the covenant breach.

During the year, Lotus secured a £270m bank loan that required it to maintain positive shareholders’ funds. The breach forced the management of Lotus’s owner, the Malaysian car manufacturer Proton, into negotiation with its bankers and the lead lender agreed to waive the covenant until March 31, 2014.

Proton is planning to re-finance Lotus’ debt to smooth the road ahead but its deputy chief executive, Lukman bin Ibrahim, said that until this has been competed, “there is a material uncertainty which may cast significant doubt over the group and the company’s ability to continue to operate as a going concern”.

He acknowledged that 2013 was a “challenging” year for the group, adding: “While it continued its plans for the development of new exciting future products, the performance of the group was restricted by the continuing weak market conditions, fragile consumer confidence, increased competition and cost pressures leading to increased operational cost.”

Despite its financial predicament, Lotus has been investing in the future and last year its research and development costs came to £96.2m, which, alone, was more than its entire revenue.

“Lotus Cars will focus on maximising sales of its current Evora, Exige and Elise offerings, which will be further enhanced by future variants,” said bin Ibrahim.
“The substantial investment needed to implement the strategies will impact the financial position of the group in the short term but, once the transformation has taken shape, the group will be on a much stronger footing operationally and financially.”

Lotus has a long way to go before it hits top gear. Last year it laid off 201 staff and burned through £2.6m of its cash reserves, leaving it with £15m. Some of the most badly hit were its suppliers, which include tool manufacturers, haulage firms and raw material providers.

Last year the company’s creditors were paid an average of 155 days late, up from 154 in 2012.

Last November, the company was awarded a £10.4m grant from the Regional Growth Fund to develop new models and train more than 300 new staff it hoped to hire. Since 1996 it has lost money in every year except one.

Earlier in the year, Proton’s Malaysian parent company, DRB Hi-Com, unveiled a £100m investment in Lotus and a plan to break even by 2015 but, to do this, it needs to sell 3,500 cars a year.

No new model development until the refinancing issue gets resolved.

I was hoping to see the two seat convertible/targa rumored back in 2011 by now.

At least a Photoshop of one superior to the blurriness below.

Dany Bahar confirms Evora convertible is on the way
April 29, 2011
Dany Bahar confirms Evora convertible is on the way | The Lotus Forums

The car still figures very highly on Lotus’ agenda as they continue to develop and engineer the New Era range of cars with the in house V8 development along with bespoke in house gearbox progressing well and according to plan.

I don't recall even seeing an Evora on the road, sat in one a few years ago at a dealership. It was much easier to get in and out of than the Elise/Exige.