Group Lotus plc, the UK sportscar manufacturer and automotive engineering consultancy, has secured GPB 40 million financing in Guaranteed Floating Rate Notes (FRN). The issue, arranged by ING Barings, was oversubscribed by 70% reflecting market confidence in Lotus' future programmes.

This funding will support the planned growth of Group Lotus' vehicle range, manufacturing capacity and engineering consultancy business.

In the financial year to 31/3/00 Lotus turnover increased by 24% giving Lotus its highest ever recorded turnover for the 5th consecutive year. Turnover for the Group stands at £138.9 million and profit before R&D and new product development stood at £15 million.

Chris Knight, Chief Executive of Group Lotus commented:

"We are committed to consistent, year-on-year growth of Lotus. In the last two years alone we have invested heavily in the business, constructing new manufacturing facilities - tripling production capacity - and a state-of-the-art Research and Development Centre as well as making strategic acquisitions of engineering facilities in Coventry, UK and testing facilities in Michigan, USA. This funding will ensure that the Group maintains this growth".