British sports car maker Lotus said it has made a radical turnaround and is on course to break into profit by 2018.

Lotus closed the 2016-17 year with a positive EBITDA (earnings before interest, tax, depreciation and amortisation) of £2 million, compared to an EBITDA loss of £16.3 million 2015-16.

Lotus made an overall loss of £11.2 million in 2016/17, which was an improvement over the £41.2 million loss reported in 2015/16, with the company recording a profit before tax improvement of £10 million in the second half of FY16/17 compared to the first six months of the year. 

Looking ahead, Lotus said it anticipates a return to full-year profit before tax for 2017/18.

Key to this turnaround has been the introduction of a revised portfolio, with new benchmark sports cars within the Evora, Exige and Elise model ranges together with the new Lotus 3-Eleven.

Recently the company has launched products in new markets, including the US, and opened new dealerships across the globe, increasing from 138 sales points in 2014 to 215 today.

Group Lotus CEO Jean-Marc Gales said: “This is a proud moment for Lotus and to have achieved so much is testament to the hard work of all our staff. Our vastly improved profitability, together with an increase in revenue means that for the first time in many years Lotus is now a self-sufficient and sustainable business.”

Comprising Lotus Cars and Lotus Engineering, the Norfolk-based company improved quality, reduced costs and increased margins resulting in the best sustainable performance for the business for many years, he said.

A vital part of the return to profitability was the introduction of new models. From the new Lotus Elise line up, including the Elise Sprint 220, the Exige Cup 380 and Lotus’ most potent road going sports car ever, the Evora GT430, each clearly demonstrates the company’s ambitions for the future, he added.