TIDMLONR
RNS Number : 1760R
Lonrho PLC
27 April 2009
27 April 2009
LONRHO PLC
("Lonrho" or the "Company")
Trading Update for the Quarter Ended 31 March 2009
"Lonrho Reports Continued Strong Growth"
Lonrho PLC (AIM: LONR) today announces its unaudited trading update for the
second quarter ended 31 March 2009 ("Second Quarter").
These results (and comparative figures included therein) do not form audited
accounts nor have been extracted from audited accounts. The comparative figures
used are year on year due to the influence of seasonality within the different
businesses in the group. The Company intends to release and post its half year
results during May 2009.
Trading Update - 3 months to 31 March 2009
The second quarter of 2008/09 has seen a period of focus on delivering growth in
the core businesses. The Company continues to operate in five strategic sectors.
(Transportation, Infrastructure, Agriculture, Support Services and Hotels).
Lonrho has built a portfolio of businesses geographically distributed across
Africa's strongest emerging markets. Lonrho believes these businesses are well
positioned to capitalise on further growth opportunities.
* Second Quarter turnover of continuing operations was GBP19.6m. This represents a
significant increase of +245% on a reported basis, and +61% increase on a like
for like basis against the prior year.
* Year to date turnover for the first six months was GBP41.5m, this is an increase
of +275% on a reported basis against the previous year and 60% increase on a
like for like basis.
* The Company held cash balances of GBP13m at 31 March 2009.
* Net assets increased to GBP86.1m up from GBP83.0m at 31 December 2008.
* EBITDA in the Second Quarter has improved 68% on the prior year with a loss of
GBP2.7m compared to a loss of GBP8.3m in the prior year on a reported basis.
* Profit before tax for the first six months on a reported basis was a profit of
GBP0.6m compared to a loss of GBP6.2m in the previous year.
The Group has recognised foreign exchange gains of GBP6.1m in respect of the
half year to 31 March 2009. As at 31 March 2009, the Group also had unrecognised
foreign exchange gains of GBP7.1m.
The Second Quarter profit before tax includes a one off gain of GBP2.3m in
relation to the closure of SAILS.
Trading Highlights by Division
Agri-Processing
* Rollex SA (51% holding), continues to be the central focus within Lonrho
Agriculture's logistical division and like for like Quarter 2 sales were up 89%
year on year. International fish export volumes decreased by 4.1% in Q2 due to
slow down in global markets. Rollex have successfully offset this impact by
identifying and entering new markets. In Zambia, road hauled cargo has more
than quadrupled to 1,256 tons from 306 tons in the second quarter of 2008. These
volumes comprise general cargo to Zambia and include the early autumn harvest
volumes (vegetables and Flowers) from Zambia to South Africa. Cargo volumes to
Zimbabwe have grown strongly during the quarter. Despite shrinking world markets
Rollex is remainingprofitable and continuing to grow.
* Building work continues for the first John Deere Angola branch which will be
located in Catete, in the Bengo Province. This branch is anticipated to open in
July 2009 to coincide with the Angolan National Agricultural Fair ( FILPA ).
Initial customer discussions are very positive.
Transport
* Lonrho's pan African aviation company, branded Fly540, has continued to expand
its operations. The roll out plans for Angola and Ghana continue to proceed and
are at an advanced stage. 540 Angola is expected to commence operations during
the next quarter and followed by 540 Ghana in the second half of 2009.
* At 540 Kenya (49% holding), the business continues to operate profitably, with
passenger numbers reaching 17,311 in March 2009 (2008: 13,579 passengers), above
budget for a slower month prior to the increased demand in preparation of the
Easter holidays. The Nairobi to Kilimanjaro route opened in January 2009 and
the Nairobi to Mwanza route is expected to open during the coming quarter.
* 540 Uganda, (90% holding), continues to see freight volumes growing although
growth has been hampered by the delay in the slow return of the food aid flights
to the DRC. It is intended to open passenger routes as planned to Rwanda, Juba
and Mwanza during the next quarter.
* 540 Tanzania (90% holding), we expect that 540 Tanzania will receive its Air
Operators Certificate (A.O.C) before end of May 2009 which will be in time for
the peak travel season in June. It is currently operating premium business
charter flights in Tanzania until the A.O.C is granted. Clients include the
Tanzanian government, NGO's and commercial clients.
Support Services
* Bytes & Pieces (65% holding), continues to grow as a result of expanding
business provided to existing clients as the market benefits from the continued
rejuvenation of Mozambique. All the solutions that are offered to customers are
based on converged technologies and unified communications. Avaya IP Telephony
systems and Polycom video conferencing products have been added to the product
portfolio. Bytes &Pieces recently provided Avaya products and services to First
National Bank and TATA in Mozambique.
* Lonrho IT (CES, 50% holding), continues to grow its operations in South Africa
and gain market share. CES has opened a new branch in Lusaka in Zambia on the
1st April and anticipates opening another branch in Angola in the coming quarter
and in Malawi.
Infrastructure
* At Luba Freeport (63% holding), negotiations are proceeding well for new clients
to utilise the port as a central operational base. Noble Energy has agreed a US$
2 billion contract with the Government of Equatorial Guinea and has signed an
MOU to locate their operations at Luba. Revenue has increased by 13% on a
reported quarterly basis against the previous year. Costs continue to be kept
below budget. There has been a two month delay with the delivery of the new
container scanner which is now due to arrive in May 2009.
* Kwikbuild Corporation Limited (62% holding) and the South African subsidiary
e-Kwikbuild has reported that turnover has been lower than expectations. This is
due to the South African government postponing awarding contracts until after
the elections which were held on 22 April 2009. The order book currently stands
in the region of ZAR 58m. Margins have improved during the current quarter and
this is attributable to the new plant that was opened during the previous
quarter which is functioning as planned.
Hotels
* At the Hotel Cardoso in Mozambique (59% holding + Management Contract), the new
restaurant has now been completed as well as the refurbishment and redevelopment
of the adjacent park. Occupancy has steadily increased during the quarter and
reached 83.2% during March with an average room rate of US$83 per night compared
with an occupancy rate of 72.6% and a room rate of US$65 per night in March of
the previous year.
* Hotel Grand Karavia in Lubumbashi, DRC, (50% holding + Management Contract)
continues with its US$20m refurbishment. A loan agreement with the DBSA was
signed during the quarter providing a US$10m loan specific to the refurbishment
project. The balance of the project is being funded by local joint venture
partners and banks. Contractors are on site and redeveloping the hotel and
landscaping the grounds. The hotel remains scheduled to re-open in summer of
2009 and provide the only quality accommodation in Lubumbashi. The copper belt
of the DRC has seen improved economic activity with mines that had gone on care
and maintenance recommencing production as commodity prices rise.
Other
* Lonrho Mining. Lonrho participated in a successful rights issue in Lonrho
Mining, which is listed on the Australian Stock Exchange. Lonrho's Holding
currently stands at 25.59% and the results from the Lulo concession in Angola
remain very encouraging.
* Lonzim PLC, in which Lonrho has a 24.25% shareholding, has announced that it
expects to be served by Pershing Nominees Limited on behalf of AMB Capital
(Ireland) Limited ("AMB"), a company that has recently acquired 20.75% of the
Lonzim issued share capital a requisition to convene an Extraordinary General
Meeting ("EGM") of its shareholders. This will be after the company's Annual
General Meeting ("AGM") which has already been convened for 30th April 2009.Key
Developments Announced
During the First Quarter, Lonrho also announced two other important
developments:
* Lonrho Mining Ltd has reinforced the Lulo Diamond project Kimberlite potential
following positive microprobe results.
* Beaumont Cornish Limited has been appointed as Nominated Adviser, and WH Ireland
Limited has been appointed as broker to the Company
Current Trading and Future Outlook
Each of the Company's core businesses continued to perform to expectations
during the second quarter. The impact of the global recession continues to be
felt across Africa, however the impact on the African continent is less severe
and forecasts expect sub Saharan growth in GDP to continue in 2009 albeit at a
slower rate. Lonrho continues to focus on the industry sectors and specific
economies which it believes will continue to provide the strongest growth in
Africa.
It is intended that the next quarterly update for the company will be released
in July 2009.
.
David Lenigas, Lonrho's Executive Chairman commented:
"Lonrho has for the second consecutive quarter delivered strong financial
results, which have delivered continued strong growth at a time when the global
economy is contracting, with revenues increasing 61% on a like for like basis
against the same period last year. We expect to report a profit before tax for
the half year end 31 March 2009"
"We expect Lonrho's operations to continue to deliver strong quarterly trading
performances in 2009, and we are focusing on strengthening our core businesses.
We remain extremely positive about Lonrho's prospects in our chosen countries of
operation and specific market sectors across Africa."
LONRHO GROUP
GROUP TURNOVER
1 JANUARY to 31 MARCH 2009
GBP'000S
+-------------------------------------------------+----------+--------------+--------------+-------+
| | TURNOVER On a reported basis |
+-------------------------------------------------+------------------------------------------------+
| | 3 months | 3 months | Variance | Var % |
| | to | to | | |
| | 31 March | 31 March | | |
| | 2009 | 2008 | | |
+-------------------------------------------------+----------+--------------+--------------+-------+
| Agri Processing | | | | |
+-------------------------------------------------+----------+--------------+--------------+-------+
| Rollex | 10,670 | 0 | 10,670 | 100% |
+-------------------------------------------------+----------+--------------+--------------+-------+
| Transport | | | | |
+-------------------------------------------------+----------+--------------+--------------+-------+
| 540 | 3,807 | 1,785 | 2,022 | 113% |
| Group | | | | |
+-------------------------------------------------+----------+--------------+--------------+-------+
| Other | 0 | 166 | -166 | -100% |
+-------------------------------------------------+----------+--------------+--------------+-------+
| Support Services | | | | |
+-------------------------------------------------+----------+--------------+--------------+-------+
| Bytes | 1,642 | 1,389 | 253 | 18% |
| & | | | | |
| Pieces | | | | |
+-------------------------------------------------+----------+--------------+--------------+-------+
| Other | 298 | 147 | 151 | 103% |
+-------------------------------------------------+----------+--------------+--------------+-------+
| Infrastructure | | | | |
+-------------------------------------------------+----------+--------------+--------------+-------+
| Luba | 2,052 | 1,811 | 241 | 13% |
| Freeport | | | | |
+-------------------------------------------------+----------+--------------+--------------+-------+
| E-Kwikbuild | 476 | 0 | 476 | 100% |
+-------------------------------------------------+----------+--------------+--------------+-------+
| Hotels | | | | |
+-------------------------------------------------+----------+--------------+--------------+-------+
| Hotel | 612 | 376 | 236 | 63% |
| Cardoso | | | | |
+-------------------------------------------------+----------+--------------+--------------+-------+
| Continuing | 19,557 | 5,674 | 13,883 | 245% |
| operations | | | | |
+-------------------------------------------------+----------+--------------+--------------+-------+
| | | | | |
+-------------------------------------------------+----------+--------------+--------------+-------+
| Shipping | | | | |
| -Discontinued | | | | |
+-------------------------------------------------+----------+--------------+--------------+-------+
| SAILS | 0 | 3,179 | -3,179 | N/A |
+-------------------------------------------------+----------+--------------+--------------+-------+
| Discontinued | 0 | 3,179 | -3,179 | N/A |
| operations | | | | |
+-------------------------------------------------+----------+--------------+--------------+-------+
| Total Turnover | 19,557 | 8,853 | 10,704 | 121% |
+-------------------------------------------------+----------+--------------+--------------+-------+
+-------------------------------------------------+----------+--------------+--------------+-------+
| | LIKE FOR LIKE TURNOVER1 |
| | |
+-------------------------------------------------+------------------------------------------------+
| | 3 months | 3 months | Variance | Var % |
| | to | to | | |
| | 31 March | 31 March | | |
| | 2009 | 2009 | | |
+-------------------------------------------------+----------+--------------+--------------+-------+
| Agri Processing | | | | |
+-------------------------------------------------+----------+--------------+--------------+-------+
| Rollex | 10,670 | 5,641 | 5,029 | 89% |
+-------------------------------------------------+----------+--------------+--------------+-------+
| Transport | | | | |
+-------------------------------------------------+----------+--------------+--------------+-------+
| 540 | 3,807 | 1,785 | 2,022 | 113% |
| Group | | | | |
+-------------------------------------------------+----------+--------------+--------------+-------+
| Other | 0 | 166 | -166 | -100% |
+-------------------------------------------------+----------+--------------+--------------+-------+
| Support Services | | | | |
+-------------------------------------------------+----------+--------------+--------------+-------+
| Bytes | 1,642 | 1,389 | 253 | 18% |
| & | | | | |
| Pieces | | | | |
+-------------------------------------------------+----------+--------------+--------------+-------+
| Other | 298 | 147 | 151 | 103% |
+-------------------------------------------------+----------+--------------+--------------+-------+
| Infrastructure | | | | |
+-------------------------------------------------+----------+--------------+--------------+-------+
| Luba | 2,052 | 1,811 | 241 | 13% |
| Freeport | | | | |
+-------------------------------------------------+----------+--------------+--------------+-------+
| E-Kwikbuild | 476 | 831 | -355 | -43% |
+-------------------------------------------------+----------+--------------+--------------+-------+
| Hotels | | | | |
+-------------------------------------------------+----------+--------------+--------------+-------+
| Hotel | 612 | 376 | 236 | 63% |
| Cardoso | | | | |
+-------------------------------------------------+----------+--------------+--------------+-------+
| Continuing | 19,557 | 12,146 | 7,411 | 61% |
| operations | | | | |
+-------------------------------------------------+----------+--------------+--------------+-------+
| | | | | |
+-------------------------------------------------+----------+--------------+--------------+-------+
| Shipping | | | | |
| -Discontinued | | | | |
+-------------------------------------------------+----------+--------------+--------------+-------+
| SAILS | 0 | 3,179 | -3,179 | N/A |
+-------------------------------------------------+----------+--------------+--------------+-------+
| Discontinued | 0 | 3,179 | -3,179 | N/A |
| operations | | | | |
+-------------------------------------------------+----------+--------------+--------------+-------+
| Total Turnover | 19,557 | 15,325 | 4,232 | 28% |
+-------------------------------------------------+----------+--------------+--------------+-------+
1Including Rollex and E-Kwikbuild and removal of Sails from 2008 results
Results sourced from March 2009 management accounts
LONRHO GROUP
GROUP TURNOVER
SIX MONTHS to 31 MARCH 2009
GBP'000S
+-------------------------------------------------+----------+--------------+--------------+-------+
| | Turnover on a reported basis |
+-------------------------------------------------+------------------------------------------------+
| | 6 months | 6 months | Variance | Var % |
| | to 31 | to | | |
| | March | 31 March | | |
| | 2009 | 2009 | | |
+-------------------------------------------------+----------+--------------+--------------+-------+
| Agri Processing | | | | |
+-------------------------------------------------+----------+--------------+--------------+-------+
| Rollex | 22,859 | 0 | 22,859 | 100% |
+-------------------------------------------------+----------+--------------+--------------+-------+
| Transport | | | | |
+-------------------------------------------------+----------+--------------+--------------+-------+
| 540 | 8,013 | 3,590 | 4,423 | 123% |
| Group | | | | |
+-------------------------------------------------+----------+--------------+--------------+-------+
| Other | | | | |
+-------------------------------------------------+----------+--------------+--------------+-------+
| Support Services | | | | |
+-------------------------------------------------+----------+--------------+--------------+-------+
| Bytes | 3,567 | 2,758 | 809 | 29% |
| & | | | | |
| Pieces | | | | |
+-------------------------------------------------+----------+--------------+--------------+-------+
| Other | 736 | 393 | 343 | 87% |
+-------------------------------------------------+----------+--------------+--------------+-------+
| Infrastructure | | | | |
+-------------------------------------------------+----------+--------------+--------------+-------+
| Luba | 4,163 | 3,465 | 698 | 20% |
| Freeport | | | | |
+-------------------------------------------------+----------+--------------+--------------+-------+
| E-Kwikbuild | 853 | 0 | 853 | 100% |
+-------------------------------------------------+----------+--------------+--------------+-------+
| Hotels | | | | |
+-------------------------------------------------+----------+--------------+--------------+-------+
| Hotel | 1,312 | 861 | 451 | 52% |
| Cardoso | | | | |
+-------------------------------------------------+----------+--------------+--------------+-------+
| Continuing | 41,503 | 11,067 | 30,436 | 275% |
| operations | | | | |
+-------------------------------------------------+----------+--------------+--------------+-------+
| | | | | |
+-------------------------------------------------+----------+--------------+--------------+-------+
| Shipping | | | | |
| -Discontinued | | | | |
+-------------------------------------------------+----------+--------------+--------------+-------+
| SAILS | 1,187 | 6,701 | -5,514 | -82% |
+-------------------------------------------------+----------+--------------+--------------+-------+
| Discontinued | 1,187 | 6,701 | -5,514 | -82% |
| operations | | | | |
+-------------------------------------------------+----------+--------------+--------------+-------+
| Total Turnover | 42,690 | 17,768 | 24,922 | 140% |
+-------------------------------------------------+----------+--------------+--------------+-------+
+-------------------------------------------------+----------+--------------+--------------+-------+
| | LIKE FOR LIKE TURNOVER1 |
| | |
+-------------------------------------------------+------------------------------------------------+
| | 6 months | 6 months | Variance | Var % |
| | to 31 | to | | |
| | March | 31 March | | |
| | 2009 | 2009 | | |
+-------------------------------------------------+----------+--------------+--------------+-------+
| Agri Processing | | | | |
+-------------------------------------------------+----------+--------------+--------------+-------+
| Rollex | 22,859 | 13,807 | 9,052 | 66% |
+-------------------------------------------------+----------+--------------+--------------+-------+
| Transport | | | | |
+-------------------------------------------------+----------+--------------+--------------+-------+
| 540 | 8,013 | 3,590 | 4,423 | 123% |
| Group | | | | |
+-------------------------------------------------+----------+--------------+--------------+-------+
| Other | | | | |
+-------------------------------------------------+----------+--------------+--------------+-------+
| Support Services | | | | |
+-------------------------------------------------+----------+--------------+--------------+-------+
| Bytes | 3,567 | 2,758 | 809 | 29% |
| & | | | | |
| Pieces | | | | |
+-------------------------------------------------+----------+--------------+--------------+-------+
| Other | 736 | 393 | 343 | 87% |
+-------------------------------------------------+----------+--------------+--------------+-------+
| Infrastructure | | | | |
+-------------------------------------------------+----------+--------------+--------------+-------+
| Luba | 4,163 | 3,465 | 698 | 20% |
| Freeport | | | | |
+-------------------------------------------------+----------+--------------+--------------+-------+
| E-Kwikbuild | 853 | 1,079 | -226 | -21% |
+-------------------------------------------------+----------+--------------+--------------+-------+
| Hotels | | | | |
+-------------------------------------------------+----------+--------------+--------------+-------+
| Hotel | 1,312 | 861 | 451 | 52% |
| Cardoso | | | | |
+-------------------------------------------------+----------+--------------+--------------+-------+
| Continuing | 41,503 | 25,954 | 15,549 | 60% |
| operations | | | | |
+-------------------------------------------------+----------+--------------+--------------+-------+
| | | | | |
+-------------------------------------------------+----------+--------------+--------------+-------+
| Shipping | | | | |
| -Discontinued | | | | |
+-------------------------------------------------+----------+--------------+--------------+-------+
| SAILS | 1,187 | 6,701 | -5,514 | -82% |
+-------------------------------------------------+----------+--------------+--------------+-------+
| Discontinued | 1,187 | 6,701 | -5,514 | -82% |
| operations | | | | |
+-------------------------------------------------+----------+--------------+--------------+-------+
| Total Turnover | 42,690 | 32,655 | 10,035 | 31% |
+-------------------------------------------------+----------+--------------+--------------+-------+
1Including Rollex and E-Kwikbuild and removal of Sails from 2008 results
Results sourced from March 2009 management accounts
Enquiries
+----------------------------------------------+--------------------------+
| Lonrho Plc | |
+----------------------------------------------+--------------------------+
| David Lenigas, Executive | +44 |
| Chairman | (0)20 |
| | 7016 |
| | 5105 |
+----------------------------------------------+--------------------------+
| Geoffrey White, Chief | +44 |
| Executive Officer | (0)20 |
| | 7016 |
| | 5105 |
+----------------------------------------------+--------------------------+
| David Armstrong, Finance | +44 |
| Director | (0)20 |
| | 7016 |
| | 5105 |
+----------------------------------------------+--------------------------+
| Emma de Borchgrave, | +44 |
| Executive Director | (0)20 |
| | 7016 |
| | 5105 |
+----------------------------------------------+--------------------------+
| | |
+----------------------------------------------+--------------------------+
| Pelham PR | |
+----------------------------------------------+--------------------------+
| Charles Vivian | +44 |
| | (0) |
| | 20 |
| | 7743 |
| | 6672 |
+----------------------------------------------+--------------------------+
| | +44 |
| | (0) |
| | 7977 |
| | 297903 |
+----------------------------------------------+--------------------------+
| James MacFarlane | +44 |
| | (0) |
| | 20 |
| | 7743 |
| | 6375 |
+----------------------------------------------+--------------------------+
| | +44 |
| | (0) |
| | 7841 |
| | 672831 |
+----------------------------------------------+--------------------------+
| | |
+----------------------------------------------+--------------------------+
| Beaumont Cornish | |
| Limited (Nomad) | |
+----------------------------------------------+--------------------------+
| Rosalind Hill Abrahams | +44 |
| | (0) |
| | 20 |
| | 7628 |
| | 3396 |
+----------------------------------------------+--------------------------+
| Roland Cornish | +44 |
| | (0) |
| | 20 |
| | 7628 |
| | 3396 |
+----------------------------------------------+--------------------------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
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