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LAF
LOLAF
LAF - Lonrho Africa - Preliminary results for the year ended september 30TH
2006
Lonrho Africa Plc
(Incorporated and registered in England and Wales)
(Registration number 2805337)
(Share code: LAF; ISIN number: GB0002568813)
("Lonrho Africa" or "the Company")
PRELIMINARY RESULTS FOR THE YEAR ENDED SEPTEMBER 30TH 2006
Lonrho, the Pan-African company with a diverse portfolio of investments in
hard asset infrastructure and other interlinked opportunities, today
announces its preliminary results for the year ended September 30th 2006.
FINANCIAL HIGHLIGHTS
- Group turnover was GBP3.4 million
- Total Operating Assets reached GBP23.5 million at year end
- Cash balance at year end stood at GBP20.7 million
OPERATIONAL HIGHLIGHTS
- The Company received shareholder approval at the EGM in February 2006
to initiate a new investment strategy to re-establish Lonrho`s
presence in Africa
- Since that date the Company has made a number of investments:
INFRASTRUCTURE
- In May 2006 Lonrho acquired 63% of Luba Freeport Limited in Equatorial
Guinea, which is being developed into the premier West African hub for
oil and gas and transhipping
HOTELS / LEISURE
- Investment in Hotel Cardoso retained; with the hotel enjoying its best
year`s trading for eight years in 2006
NATURAL RESOURCES
- Lonrho made investments in Brinkley Mining, a uranium mining company,
and Nare Diamonds, a diamond exploration and production company in
South Africa
POST-YEAR END
- Lonrho has made strong inroads in the transport sector since the year
end:
- Lonrho acquired 49% of Fly540, a new low cost airline based in
Nairobi, for US$1.5m
- Lonrho acquired 43% of Norse Air, a cargo and charter passenger
air travel business based in South Africa, for US$6m
- Also since year end Lonrho has acquired a 50% interest in Swissta
Holding Limited, a water bottling company with factories in Mozambique
and the Democratic Republic of the Congo
David Lenigas, Executive Chairman and Chief Executive Officer of Lonrho,
commented:
"Since the new investment strategy was approved by shareholders, Lonrho has
shown its ability to make value enhancing investments across Africa in a
range of sectors. These fit in with the Company`s strategy of servicing
Western investment in the continent whilst supporting African wealth
creation.
"In 2007 Lonrho will continue to target investments in lead sectors
alongside interlinked opportunities and anticipates strong growth from its
existing investments."
28 March 2007
South African sponsor to Lonrho Africa Plc
Java Capital (Proprietary) Limited
Enquiries:
Lonrho Africa Plc
David Lenigas Tel: +44 (0)20 7016 5100
Email: lenigas@lonrho.com
Pelham Public
Relations
Charles Vivian Tel: +44 (0)20 7743 6672
Email: charles.vivian@pelhampr.com
Alisdair Tel : +44 (0)20 7743 6676
Haythornthwaite
Email : alisdair.haythornthwaite@pelhampr.com
Strand Partners
Simon Raggett Tel : +44 (0)20 7409 3494
Email : simonraggett@strandpartners.co.uk
INVESTMENT STRATEGY
Lonrho is re-establishing itself as a Pan-African company, along the lines
of Lonrho of old with a diverse portfolio of assets. In order to create
maximum value for shareholders, the management team is currently
implementing an investment strategy that targets hard asset infrastructure
linking with a diverse range of other opportunities via organic growth and
capital injections. This strategy was approved by shareholders at an EGM
held on 24 February 2006.
Following the appointment of David Lenigas as Chief Executive Officer on 21
December 2005, the Board, supported by a number of Lonrho`s major
shareholders, concluded that it would be in the best interests of
shareholders to use the Company`s strong brand name and cash position to re-
establish a significant presence in Africa.
To date the new investment strategy focuses on key linked investments in
the infrastructure and transportation sectors as well as related
investments in hotels/leisure and natural resources sectors.
CHAIRMAN`S AND CHIEF EXECUTIVE`S STATEMENT
This year Lonrho has been strongly acquisitive and made a number of key
investments in its target sectors. The Board believes that to create value
for shareholders it needs to re-build what is already a well recognised
brand with a strong reputation in Africa.
We see ourselves as fundamentally an African infrastructure company,
joining foreign investment with African business opportunities. I believe
this approach is in the best interests of our shareholders and will also
support African wealth creation. Lonrho is seeking to establish a
significant presence in the continent of Africa by investing in entities
operating in a broad range of sectors, including those in which Lonrho has
historically been active and also in new sectors.
Our aim is to create hubs of business where the Company already has key in-
house financial and management expertise, through our key infrastructure
projects, and to build up linked investments in emerging sectors across a
resurgent Africa. To date, this approach has led to a portfolio of
interests in primary infrastructure projects, such as the Luba Freeport; in
infrastructure support services, with two air carriers; a legacy investment
in the Hotel Cardoso in Mozambique and investments in two developing mining
companies.
INFRASTRUCTURE
Lonrho is looking to invest in infrastructure projects throughout Africa
that will benefit businesses and communities alike, and allow the Company
to build hubs from them. We believe that infrastructure projects can be
divided into hard asset and support services categories.
HARD ASSET INFRASTRUCTURE
In May, we acquired 63% of Luba Freeport Limited in Equatorial Guinea which
we are developing into the premier West African hub for both oil and gas,
and transhipping. Luba represents our flagship investment to date.
Luba presently serves most major oil companies in the region as a one-stop
facility. We have commenced construction of a 60,000 sq metre logistics
facility for Mobil Equatorial Guinea Inc (MEGI) part of the world`s largest
oil company, ExxonMobil. Lonrho has also begun an extensive expansion
program to improve quay-space and port facilities, employing Jurong
Primewide, world leaders in port design and construction, and retaining
Mace International, project management consultants to London 2012.
INFRASTRUCTURE SUPPORT SERVICES
We have already made strong inroads in the transportation sector. We have
made our first foray into Kenya under the new strategy with an investment
in Fly540, a new low cost airline based in Nairobi. This project offers
strong expansion possibilities, as the number of passengers grows due to
increased tourism and business travel in the region. We have ambitions to
grow Fly540 into an international carrier servicing Eastern Africa by the
end of 2007.
We have also invested in Norse Air, an aviation business based in Mauritius
and South Africa, with operations across the continent. There is an
increasing demand for reliable cargo and chartered passenger air travel
across Africa, demonstrated by a contract announced after the year end in
February 2007 with AngloGold Ashanti for cargo and passenger services to
service their African mining operations.
Lonrho believes that aviation fits well into our strategy as we strive to
make investments that will positively impact on African business and
communities alike.
SUPPORT SERVICES
Throughout our former disposal programme, we held onto our 59.04%
investment in the Hotel Cardoso in Mozambique. The wisdom of this decision
was confirmed recently when the hotel recorded its best year`s trading for
eight years. The hotel has spent a significant amount of capital on
refurbishments to its existing facilities which has resulted in increased
capacity and revenue, such expenditure being financed from existing
cashflow.
Since Lonrho`s year end, we have entered into the water bottling market
through an investment via Strenner Holding Limited in Swissta. Swissta
produces purified natural water in Africa which is enriched with essential
minerals. The Company currently has water bottling factories in Mozambique
and the Democratic Republic of the Congo. During the current financial year
we intend to develop our presence in this sector with a number of target
acquisitions identified in the water bottling market across Africa.
NATURAL RESOURCES
Investing in natural resources fits with our strategy as Africa has
historically, and will continue to be, a resources hub. As such it has
strong connections with the infrastructure and transportation sectors.
Our first investment was in Brinkley Mining, a growing player in the re-
emerging Uranium sector. Brinkley Mining has significant potential in the
Uranium market in South Africa and the Democratic Republic of the Congo. We
had an 8.2% investment in Brinkley prior to the company coming to the AIM
market in June.
We made our second investment in the natural resources sector by acquiring
a 17% interest in Nare Diamonds, a diamond production and exploration
Company in South Africa. Nare`s Schmidtsdrift Mine has consistently
yielded diamonds larger than 30 carats. A 235-carat high quality diamond
was discovered at the mine in April, which was subsequently sold for
US$10,205.91 per carat, yielding a total price of US$2,398,695.
Lonrho has been operating in Africa for many years and has a strong
reputation and brand recognition. We aim to see the Company flourish again
over the next few years turning it back into a leading Pan-African
investor, helping to drive Africa`s growth at the same time.
In this regard, I am seeking shareholders` approval at the forthcoming
Annual General Meeting for a change in the company`s name to Lonrho Plc.
I look forward to a productive year ahead and would like to take this
opportunity to thank all of the Company`s staff in London and in Africa for
their hard work and contributions made throughout the year. I would also
like to thank our shareholders for their continued confidence and support,
as we seek to rebuild Lonrho in Africa.
David Lenigas
Executive Chairman and CEO
REVIEW OF OPERATIONS
INTRODUCTION
Lonrho is re-establishing a significant presence on the African Continent
through strategic investments across a range of sectors thereby playing an
integral role in Africa`s current revival.
INFRASTRUCTURE
There currently exists significant opportunities for Lonrho to be part of
the "movement" to radically improve African infrastructure which is
fundamental to achieving sustainable growth across the continent.
Frequently, governments and the public sector are unable to provide
sufficient funding for necessary projects which are critical platforms for
economic growth. This represents a real opportunity for private investment.
Lonrho`s strategy of investing in hard asset infrastructure will accelerate
growth, assist in reducing poverty and promote regional integration, while
adding shareholder value.
LUBA FREEPORT LIMITED (63%)
Lonrho acquired 63% of Luba Freeport Limited ("Luba Freeport") in May 2006
with David Lenigas being appointed as Chairman of the Luba Freeport Board.
Lonrho`s aim is to develop Luba Freeport into the premier West African hub
for both the oil and gas industry as well as for transhipping.
Luba Freeport provides a strategic, naturally sheltered deep-water
environment in Equatorial Guinea. Presently servicing numerous major oil
and gas companies in the region, Luba acts as a logistics centre for the
burgeoning oil and gas industries operating in the Gulf of Guinea.
Luba Freeport currently services the expanding oil fields situated in the
Gulf of Guinea providing a hub for the supply of consumables to oil
production and exploration rigs. It is a one-stop facility - vessels
receive their fuel, bulk chemicals, water and cargo without the need to
change berths. The port benefits from a central location: short sailing
times to a number of countries gives Luba a significant advantage over
other regional ports. Luba Freeport also enjoys tax concessions awarded by
the Government of Equatorial Guinea and provides an ideal regional
transhipping hub.
EXPANSION
Lonrho is maintaining the overall development programme for the port`s
facilities with the support of the government of Equatorial Guinea, our
partner shareholder. Lonrho has to date invested in new operations
equipment and has expanded accommodation and catering facilities to meet
increased demand. Lonrho is also overseeing the immediate construction of
an additional 70m of quay. As part of the first phase of expansion, Lonrho
will also develop a larger storage and management facility for MI Swaco, a
leading provider of fluid engineering services to the oil and gas sector.
Luba Freeport will also accommodate MI Swaco to provide a waste management
system facility for the treatment of oil industry waste. This facility will
be a Joint Venture between MI Swaco and the Government of Equatorial
Guinea. Currently waste is being held and transported to neighbouring
countries for treatment.
In September, Mobil Equatorial Guinea Inc. (MEGI), part of ExxonMobil, and
Luba Freeport agreed terms to build a 60,000 sq metre logistics facility at
Luba. The new world class facility will serve as the regional logistics
base for MEGI and is expected to be completed by 30 June 2007. The
facility sets the pace for growth at Luba and provides MEGI with leading-
edge technology to increase its production activities in the Gulf of
Guinea. MEGI`s relocation to Luba Freeport demonstrates its commitment to
Luba as a regional hub for the expansion of its operations and further
suppliers to the oil and gas industry are expected to follow suit.
Luba Freeport has also appointed two of the world`s leading players in port
design and management to assist in realising its huge potential in West
Africa. Jurong Primewide, part of Jurong International, has masterplanned
and designed the expansion of Luba. Jurong has been responsible for shaping
the shipping landscape of Singapore since 1968 and offers Luba fully-
integrated solutions to develop it into a world-class facility. Luba has
also appointed Mace International to help deliver the expansion on time and
to budget. Mace currently manages the infrastructure delivery for London`s
2012 Olympics and Heathrow Airport`s Terminal 5.
Lonrho and Luba Freeport`s management are committed to improve and expand
the port`s facilities over the next few years. The foresight of this
investment is starting to show as the increase in oil activity is
accelerating in the Gulf of Guinea, where there are a further 11
exploration wells programmed to be drilled in 2007. Exploration drilling is
also expected to commence in Sao Tome, to the south of Equatorial Guinea.
Vessel calls in Luba will increase to support these operations and since
Lonrho`s acquisition, vessel movements have increased by some 45% month-on-
month (2005/2006). In the six months to the year ending 30 September 2006,
the port brought in revenue of US$5.4m, making a profit before tax of
US$1.6m.
TRANSPORT
Improved transportation systems including roads, railways and airlines, are
necessary to improve living standards as well as to increase Africa`s
regional and international trade. Lonrho intends to invest in transport
related projects and businesses that can make a substantive difference to
the region. Since the end of the period under review, Lonrho now holds
stakes in two airlines - Fly540 and Norse Air.
FIVE FORTY AVIATION LIMITED (49%)
Five Forty Aviation Limited ("Fly540") is a recently established low cost
airline based in Nairobi, Kenya.
Lonrho`s investment in Fly540 was its first in the aviation business
sector. It is an ideal fit with Lonrho`s objective to invest in businesses
that can make a substantive difference to the region.
Lonrho acquired 49% of the issued share capital of the airline in October
for a cash consideration of US$1.5 million. As part of the investment,
David Lenigas assumed the role of Chairman of Fly540.
As well as providing some freight services, Fly540 has been created to meet
the growing demand for alternative domestic and regional air travel within
Africa. Kenya is seen as an ideal base for the new airline as the country
is a popular tourist destination with a thriving domestic air travel
market.
Fly540 commenced operations in Kenya in November 2006 with its inaugural
route, the busy Nairobi/ Mombasa connection. In January 2007, Fly540 began
flying the Nairobi/Kisumu route. This was followed by a number of new local
Kenyan routes to Kisumu, Malindi and Lamu. Fly540 plans to add further
regional East African routes in 2007.
Initially, the airline deployed a fleet of two modern French made ATR42
turbo prop aircraft offering a mix of comfort, speed and economic operating
costs. In 2007, Fly540 plans to add at least two additional similar
aircraft.
Offices and check-in facilities are now established at Nairobi Domestic and
International Terminals as well as at Mombasa, Malindi, Kisumu and Lamu
Airports.
NORSE AIR LIMITED (43%)
Norse Air Limited ("Norse Air") is a private aviation business based in
Mauritius and South Africa. Lonrho acquired 43% of its issued share capital
in November 2006 for a total cash consideration of $6 million. As part of
its investment, Lonrho is entitled to nominate the Non-Executive Chairman
of Norse Air.
Services include charter and freight services, leasing, sales and
maintenance. Norse Air manages flights to and from Afghanistan, Ivory
Coast, Central African Republic, Madagascar, Mozambique and Singapore.
For the ten months ended 31 December 2005, the Norse Air Group generated
revenues of approximately R91.8 million, a pre-tax profit of approximately
R26.2 million and as at 31 December 2005 had total assets of R131 million.
Lonrho`s investment will facilitate Norse Air`s geographic expansion of
both its Charter and Leasing operations and will assist in funding the
acquisition of additional aircraft, resources and infrastructure
facilities.
Norse Air Leasing offers a global on-site service providing aircraft, crew
and maintenance. Norse Air has a number of aircraft based in various parts
of Africa and in the East, including, Ivory Coast, Gabon, Madagascar,
Mozambique, Central African Republic, Ghana, Singapore and Afghanistan.
The company has successfully operated aircraft for the World Food
Programme, the International Red Cross, the United Nations and other Non-
Governmental Organisations and international businesses, often under
hostile environmental conditions. Norse Air provides aircraft such as King
Airs, Beechcrafts, SAABs and Learjets.
Norse Air Charter is focused on the provision of passenger and cargo
charter services both within and to Africa. Norse Air`s extensive network
of contacts, and its ability to leverage long-standing relationships with
both Governmental and Non-Governmental Organisations, enables it to
successfully manage flights into inhospitable areas with little
infrastructure as well as to deal with militant activity.
The Charter Division has landed its largest contract to date providing
AngloGold Ashanti with a Boeing 737 `Quick Change` aircraft which can
convert from passenger to cargo specification. The Quickchange aircraft
will be predominately used for the AngloGold Ghana and Mali mines. The
contract has an annualised value of US$10m, which will increase Norse`s
turnover by more than 50% from the previous year. In addition, Norse has
been re-awarded a two year contract, running to February 2009, by the
National Treasury Department of the Republic of South Africa for the hiring
of aircraft and helicopters to the State. The previous contract, for 2004
to 2006, had a gross value of approximately GBP1.75 million.
Norse Air Sales has gained significant momentum over the past three years
with the recovery in values of turbo prop and small jets which generated
significant interest amongst investors, corporations and aircraft operators
in owning their own aircraft.
Norse Air Maintenance meets the demanding maintenance requirements of the
Group`s operations, utilising on-site engineers in various developing
countries backed up by the company`s main base at Rand Airport,
Johannesburg. The maintenance operation is licensed to service a variety of
aircraft including SAAB, Embraer and Beechcraft, as well as jets such as
the Citation and the Learjet. Although its primary focus is on maintaining
the various aircraft owned by the company, it also services aircraft on
behalf of third parties.
SUPPORT SERVICES
The tourism industry in Africa grew by an estimated 10% in 2005 with an
estimated 36.7 million tourists visiting Africa, up from 33.3 million in
2004. This compares favourably with the global average for tourism industry
growth in 2005 of just 5.5% (World Tourist Organisation). Lonrho will
benefit from this growth in the African tourism and leisure industry
through its investment in the Hotel Cardoso, Mozambique and potentially
through additional investments in, and acquisitions of, hotels and other
leisure businesses across the Continent.
HOTEL CARDOSO SARL (59.04%)
Mozambique has one of the fastest growing tourism industries in the world.
This growth was reflected in improved business at the Hotel Cardoso in
Maputo which reported its best year`s trading in eight years in September.
The Hotel Cardoso offers an ideal venue for both business and leisure
travellers. The bar and restaurant and all its bedrooms and lounges are
decorated in bright colours to reflect the laid back, beautiful
environment. Most notable features are the large outdoor pool, surrounded
by spacious gardens, and the terrace with stunning views over the bay and
the city of Maputo. The hotel is fully air-conditioned.
The Hotel Cardoso is five minutes by car to the business centre of Maputo
and just 15 minutes from Mavalane Airport.
Lonrho purchased the Hotel Cardoso in 1990. In 1991, Lonrho offered shares
in the hotel for public purchase while retaining a 50% shareholding and, in
1997, increased this to 59.04%.
For its financial year ended 30 September 2006, Hotel Cardoso`s revenues
were up by 15% as a result of a 9% increase in occupancy levels to 53%
combined with a 14% growth in average room rate achieved.
Lonrho and the Hotel Cardoso`s management are committed to improve and
expand the Hotel`s facilities over the next couple of years. During 2006,
the hotel spent US$470,000 on capital improvements which included the
upgrading of public area air conditioning, carpeting, landscaping, lift
refurbishment, a new gymnasium and the addition of wireless internet
services throughout the Hotel.
This coming year, the hotel will refurbish all hotel bedrooms and perform
major improvements to the conference facilities at a cost of around
US$750,000.
In the twelve months ended 30 September 2006, the hotel achieved revenue of
US$2.17m, making a profit before tax of US$82,000.
NATURAL RESOURCES
Increasingly, international investor attention is turning to Africa -
specifically to Natural Resources. Last year the United States imported
more oil from Africa than it did from the Middle East. Natural Resources
are going to be a key aspect of Lonrho`s investment strategy moving forward
with a focus on uranium, base metals, platinum, oil and gas.
NARE DIAMONDS LIMITED (19.05%)
Nare Diamonds Limited ("Nare") was established in 2004 and through its
South African subsidiary, New Diamond Corporation ("NDC"), has interests in
a combination of diamond production and exploration operations in South
Africa.
In April 2006, as part of a pre-IPO funding, Lonrho invested GBP1.5 million
in Nare Diamonds Limited in return for a 17% holding in Nare`s issued share
capital. Lonrho subscribed for 14.44 million ordinary shares at 10.4 pence
per share. As part of the investment, David Lenigas became Non-Executive
Chairman of Nare. At the IPO onto the Australian Stock Exchange, Lonrho
subscribed for a further 7.36m shares for GBP1.5m taking the holding to
19.05%, in December 2006.
Nare Diamonds is involved in production and exploration projects in South
Africa which include the Schmidtsdrift Diamond Mine, the Klipspringer Joint
Venture, the Groen River Project and the Kamfersdam Kimberlite Pipe and
tailings operation. Nare Diamonds was admitted to the Australian Stock
Exchange in December 2006 and is seeking an admission to AIM.
Since commencing production in March 2006, Nare has sold a total of 3,849
carats of diamonds at an average price of US$1,161 per carat for an
aggregate consideration of approximately US$4.5 million. Nare`s most
recent diamond sale saw 1,177.83 carats sold for US$735,328, an average
price of approximately US$624 per carat. Included in that sale were two
large diamonds in excess of 30 carats each and six diamonds between 10 and
30 carats.
235-CARAT DIAMOND
A 235-carat high quality diamond was discovered at the Schmidtsdrift Mine
in April. Nare sold the stone for US$10,205.91 per carat, yielding a total
price of US$2,398,695.
BRINKLEY MINING PLC (4.23%)
Brinkley Mining Plc ("Brinkley") has significant Uranium and Molybdenum
prospects in the Karoo region of South Africa some 450 km North-East of
Cape Town.
In March 2006, Lonrho invested GBP5 million in Brinkley subscribing for 25
million of Brinkley`s ordinary shares at a price of 20 pence per share,
which represented an 8.2% shareholding. This was Lonrho`s first
investment under its new investing strategy and under the leadership of
David Lenigas. Brinkley was admitted to the AIM market in June 2006. Lonrho
has subsequently sold a substantial part of its stake, realising GBP3.65m,
and therefore reduced it`s holding to 4.23%. The net proceeds are intended
to be utilised for investment opportunities in the infrastructure and
support services sectors.
Brinkley has acquired the sole ownership rights to five farms near the town
of Beaufort West representing 162 square miles. In the 1970`s, Union
Carbide Corporation and Essex Minerals Company undertook extensive
exploration work in the Karoo region consisting of airborne surveys and
drilling programmes which included the four prospects owned by Brinkley.
Since the year end Brinkley has entered into a partnership with the Atomic
Energy Commission of the Democratic Republic of Congo for the development
of the country`s uranium resources.
CORPORATE SOCIAL RESPONSIBILITY
We believe that the way to drive African wealth creation is through private
investment and ethically conducted business.
Lonrho aims to improve business in Africa and make a positive difference to
local communities. We believe that our investments and acquisitions will
encourage job creation as well as economic and political stability
throughout Africa.
We pride ourselves in investee companies, such as Norse Air which has
successfully operated aircraft for the World Food Programme, the
International Red Cross and the United Nations often under hostile
environmental conditions.
We are in the process of establishing a strategic socially responsible
business program that will guide our growth strategy and business dealings.
PHILANTHROPY
Lonrho is a proud sponsor of "Our Forgotten Children", the massive,
travelling open-air exhibit, to be unveiled at the 2008 Olympic Games, in
Tiananmen Square, Beijing, and to tour every major city in the world.
The goal of the project is to create awareness of what it is like to be a
child of the New Millennium, and to show the faces-untainted by politics or
prejudice-of those who will inherit the Earth.
In a world of depleted natural resources, global confrontations and
countries torn apart by man-made conflicts, it is our children who hold the
key to the future.
CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the year ended 30th September 2006
No Continui Acquisitions2006GB Tota Discontinu Tot
te ng Pm l Continui ed al
operatio 2006 ng operations 200
ns GBPm operatio 2005GBPm 5
2006 ns GBP
GBPm 2005 m
GBPm
Turnover 1.2 2.2 3.4 1.0 4.8 5.8
Group (2.8) (1.6) (4.4 (1.9) (3.9) (5.
) 8)
Group net
operating
costs
Operating
(loss)/prof
it
Group
- before (1.6) 0.6 (1.0 (0.9) 0.9 -
exceptional )
items
Non- 1 0.4 1.7
operating
exceptional
items
Interest (0.2 -
payable )
Interest 0.7 0.5
receivable
(Loss)/prof (0.1 2.2
it before )
taxation
Taxation - (0.
3)
(Loss)/prof (0.1 1.9
it after )
taxation
Minority (0.1 0.1
interests )
(Loss)/prof (0.2 2.0
it for the )
year
(Loss)/prof (0.1 1.3
it per )p p
share
(Loss)/prof (0.3 0.2
it per )p p
share
before
exceptional
items
BALANCE SHEETS
as at 30th September 2006
2006 2005 2006 2005
GBPm GBPm GBPm GBPm
Fixed assets
Intangible - goodwill 3.3 - - -
Tangible 19.8 2.6 - -
Investments:
?Other investments - - 31.5 31.5
23.1 2.6 31.5 31.5
Current assets
Stocks 0.2 0.3 - -
Debtors 2.3 1.8 - -
Investments 7.1 - - -
Cash at bank 20.7 20.3 - -
30.3 22.4 - -
Creditors: amounts falling (13.4 (0.6 (11.5 (26.0
due within one year
Net current 16.9 21.8 (11.5 (26.0
assets/(liabilities)
Total assets less current 40.0 24.4 20.0 5.5
liabilities
Provisions for liabilities - (2.5 - (2.1
and charges
Net assets 40.0 21.9 20.0 3.4
Capital and reserves
Called up share capital 2.2 1.6 2.2 1.6
Share premium 17.4 - 17.4 -
Merger reserve - 96.1 - -
Revaluation reserve 1.6 0.8 - -
Other reserve 0.1 - 0.1 -
Profit and loss account 18.2 (77.7 0.3 1.8
Shareholders` funds 39.5 20.8 20.0 3.4
Minority interests 0.5 1.1 - -
40.0 21.9 20.0 3.4
These financial statements were approved by the Board of Directors on March
26th 2007 and signed on its behalf by:
D Lenigas
CONSOLIDATED CASH FLOW STATEMENT
for the year ended 30th September 2006
2006 2005
GBPm GBPm
Net cash flow from operating
activities
- continuing operations (0.5 (0.8
- acquisition 0.5 -
?- discontinued operations - 3.1
- 2.3
Returns on investments and servicing
of finance
Interest
?- received 0.7 0.5
Net cash inflow after returns on 0.7 2.8
investments and servicing of finance
Tax paid
Overseas - (0.6
Net cash inflow before investing 0.7 2.2
activities and financing
Purchase of tangible fixed assets (1.8 (0.1
Purchase of investments (7.1 -
Loan repayments (0.2 -
Net cost of acquisition of (1.7 -
subsidiary
Loan paid on acquisition of (6.1 -
subsidiary
Bank overdraft acquired with (0.1 -
subsidiary
Net (costs)/proceeds from (1.8 13.7
closure/disposal of subsidiaries
Net proceeds from sale of properties 0.4 -
Share issue 18.0 -
Demerger dividend - (1.6
Increase in cash in the year 0.3 14.2
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
for the year ended 30th September 2006
Group 2005
2006 GBPm
GBPm
(Loss)/profit for the year (0.2 2.0
Increase/(decrease) arising on 0.9 (0.1)
revaluation of assets
Exchange adjustments to net
investments in overseas companies (0.1) 1.1
Total recognised gains relating to 0.6 3.0
the year
Total recognised gains since last 0.6 3.0
annual report
RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS` FUNDS
for the year ended 30th September 2006
Group 2005
2006 GBPm
GBPm
Recognised gains relating to the 0.6 3.0
year
Shares issued in year 18.0 -
Credit in respect of share options 0.1 -
Demerger dividend - (1.6
Net increase in shareholders` funds 18.7 1.4
in the year
At beginning of year 20.8 19.4
At end of year 39.5 20.8
NOTE OF HISTORICAL COST PROFITS AND LOSSES
for the year ended 30th September 2006
Group 2006
GBPm 2005
GBPm
Reported (loss)/profit before (0.1) 2.2
taxation
Difference between historical - 0.1
cost depreciation charge and the
actual depreciation charge
calculated on the revalued
amount
Historical cost (loss)/profit (0.1) 2.3
before taxation
Historical cost (loss)/profit after
taxation and minority interests (0.2) 2.1
NOTES TO THE FINANCIAL STATEMENTS
1. Non-operating exceptional items
2006 2005
GBPm GBPm
Profit on sale of properties 0.4 0.5
Profit on disposal of hotels - 2.7
Charge for disposal and closure - (1.0)
costs
Demerger costs -
0.4 1.7
Non-operating exceptional items
analysed by division are as follows:
Properties 0.4 0.5
Central (1.5)
Hotels - 2.7
0.4 1.7
Profits 0.4 3.2
Losses (1.5)
0.4 1.7
ANNUAL GENERAL MEETING
The Annual General Meeting of Lonrho Africa Plc will be held at the
Edinburgh Suite, The Thistle Marble Arch, Bryanston Street, London W1A 4UR
on Wednesday 25th April 2007 at 12 noon.
STATUTORY INFORMATION
The financial information set out above does not constitute the Company`s
statutory accounts for the period ended 30 September 2006 but is derived
from those accounts. Statutory accounts for 2006 will be delivered to the
registrar of companies following the Company`s Annual General Meeting. The
auditors have reported on those accounts.
Date: 28/03/2007 10:36:51 Produced by the JSE SENS Department.
