F1: Ex-Lotus team slashes debt

The Lotus Formula 1 team has managed to wipe just over £56 million [$84.5m] from its debts for 2014.

Following a protracted period of negotiations and due diligence regarding Renault's takeover, with principal contracts finally signed last week, the team is finally due to submit its 2014 accounts to Companies House – the British government agency tasked with incorporating and dissolving limited companies – this week.

In 2013, Lotus made a frightening loss of nearly £65 million [$98m], casting severe doubt at the time on the team's future in F1. It resulted in the appointment of current CEO Matthew Carter, who implemented a wide range of swingeing cost cuts, including making numerous staff redundant.

Carter conceded earlier this season he "probably went too far last year, cut a few too many heads" but his actions have resulted in what are now far more healthy financial figures for 2014. With the accounts signed off on Wednesday, it shows Lotus recorded a loss for the year of £8.553m [$12.9m], a savings of $84.5m compared to 2013.

A figure of 5m euros ($5.5m) of the 2014 debt is compensation paid to Renault for bringing to an early end the team's engine deal with the French manufacturer, as it opted to go with Mercedes for '15. A further $2.7m was paid out in redundancy costs at the beginning of 2014 following Carter's arrival.

Overall, it means the team's loss in operating terms is just over $4.5mm, which represents a remarkable turnaround given the situation at the end of 2013.

The early indication for this year is the figures will be of a similar level to 2014 for while development was lacking on the car, Lotus did lose sponsors. It is anticipated, however, the numbers will again be delayed as the Renault deal means the auditors and accountants are facing a backlog.