| Thu 3 May 2012, 8:00 | | LAF - Lonrho Plc - Interim management statement |
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LAF
LOLAF
LAF - Lonrho Plc - Interim management statement
LONRHO PLC
(Incorporated and registered in England and Wales)
(Registration number 2805337)
(Share code: LAF; ISIN number: GB0002568813)
("Lonrho")
INTERIM MANAGEMENT STATEMENT
Lonrho reports a strong first quarter with 75.0% increase in revenues and 2.8%
increase in like for like gross margins
Lonrho Plc, the Group aligned with the emerging growth of Africa, announces its
results for the first quarter of 2012 and material transactions to 3 May 2012.
Financial Highlights for the three months to 31 March 2012:
- Revenue in the quarter was GBP58.9 million, a 75.0% increase from the same
quarter in the prior year (2011: GBP33.5 million).
- Growth has been experienced across the Company`s operating divisions and
gross margin across the Group has risen by 2.8% on an adjusted like-for-
like basis.
Continuing Operations
Quarter to March Reported growth Adjusted like-for-
2012 like* growth
GBP million
Revenue
- Agribusiness 36.9 123.6% 30.0%
- Transportation 9.6 74.5% 55.4%
- Infrastructure 4.4 4.8% 4.8%
- Hotels 2.5 13.6% 4.2%
- Support 5.5 10.0% 1.9%
Services
Lonrho Plc 58.9 75.0% 26.1%
Group Gross 24.7% 1.2% 2.8%
Margin
- Net assets at 31 March 2012 stood at GBP180.5 million. At 31 December 2011
the comparative figure was GBP155.7 million and at 31 March 2011 was
GBP126.4 million.
- Cash balances held at 31 March 2012 totalled GBP22.1 million, compared to
GBP12.7 million at 31 December 2011.
- Net debt fell to GBP85.1 million at 31 March 2012 compared with GBP102.8
million at 31 December 2011.
The start of the new financial year has seen the Group continue to see real
growth in revenue and profitability of the Group businesses:
- During the quarter Lonrho entered an agreement to purchase LonAgro
Tanzania. The acquisition has added a third territory to the Lonrho - John
Deere partnership in Africa, supplementing the existing relationships in
Mozambique and Angola. Further, Lonrho during the period signed an MOU with
John Deere for the opening of a dealership in South Sudan, which will
become operational during Q2 2012.
- Lonrho Hotels, during the quarter, announced the award of a ten year
management agreement for the 450-room Grand Hotel Kinshasa in the capital
of the DRC.
- In March 2012, Kwikbuild won contracts for the supply and construction of
116 new schools for remote parts of the Eastern Cape of South Africa. The
contract includes the delivery of 398 classrooms, eight laboratories and
ancillary facilities to the Eastern Cape Province`s Department of Public
Works over a four month period, with invoicing to commence in Q2.
- Luba Freeport has seen a continuation of the strong performance generated
in the final quarter of 2011. Supply vessel calls at the port in Q1 2012
increased 16% on the first quarter of 2011, leading to a 23% increase in
revenues.
- Lonrho, in April announced, under its exclusive franchise agreement for
Africa with Sir Stelios Haji-Ioannou`s easyGroup, the first easyHotel.com
to be developed at the historic former Stuttafords Department Store
building in the Johannesburg Central Business District in South Africa. The
hotel is scheduled to be open before the end of 2012.
- Oceanfresh has entered into a partnership to supply Costco Wholesale`s
premium `Kirkland Signature` brand with sustainably sourced wild caught
Hake Loins. The first shipments have been delivered and the product will
soon become available throughout Costco Wholesale stores in the United
States, with planned further roll-outs to Canada and Mexico in 2012 and
other Costco territories at a later stage.
- The Agri-logistics business has seen strong growth in the quarter. Lonrho
Logistics has won new contracts which have allowed the Group to increase
load capacity, efficiency and volumes, helping to drive synergistic margin
benefits across the agribusiness division.
- During the quarter, a second aircraft has arrived and become operational at
Fly540 Angola. This aircraft has allowed new routes to be opened as well as
increasing capacity to current destinations. A third aircraft has recently
arrived in the country and will become operational in May 2012.
- During the quarter, Lonrho completed an equity raise for GBP26.9 million.
The Company received valid acceptances in respect of 22,534,994 New
Ordinary Shares from Qualifying Shareholders, representing approximately
20.8 per cent of the New Ordinary Shares offered under the Open Offer. A
total of 269,498,795 shares were issued at an issue price of 10 pence per
New Ordinary Share.
The first quarter has delivered strong results, especially for the Agribusiness
and Transportation divisions. The platforms that Lonrho have invested in are
well positioned to continue to expand as the African economy grows, stimulating
ever increasing consumer demand. Trading since the end of the quarter has been
in line with management expectations.
David Lenigas, Lonrho`s Executive Chairman, commented:
"2012 has begun very well with revenues improving 75.0% on last year and margins
increasing to 24.7%. Lonrho`s core businesses remain focused on servicing the
growth of the emerging African market and in contrast to much of the World, the
Continent`s economy is booming. As a result of our strategic alignment with the
growth of Africa, Lonrho continues to see strong demand across each of its
business divisions".
Lonrho will be hosting a conference call for analysts to discuss the Group`s Q1
IMS trading update with David Lenigas, Geoffrey White and David Armstrong on
Thursday 3nd May 2012 at 9:30am. For details on the call please contact FTI
Consulting on the details below. The presentation for the conference call is
available to download from the Company`s website
www.lonrho.com/investors/company_reports/investor_presentations and will be
available for a short period of time thereafter.
*includes acquisitions (pre-acquisition comparables based on un-audited
management accounts), excludes start-up businesses trading for less than 12
months and is adjusted to constant currency
ENDS
Enquiries:
Lonrho Plc +44 (0) 20 7016 5105
David Lenigas
Geoffrey White
David Armstrong
FTI Consulting +44 (0) 20 7831 3113
Edward Westropp
Georgina Bonham
3 May 2012
South African sponsor
Java Capital
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