Trading Update for the Quarter Ended 31 March 2010
May 04 2010 - 2:00AM
UK Regulatory
TIDMLONR
RNS Number : 2215L
Lonrho PLC
04 May 2010
4th May 2010
These results (and comparative figures included therein) do not form audited
accounts nor have been extracted from audited accounts. The results disclosed in
this trading update may potentially be subject to adjustments during the year
end audit in respect of goodwill valuations and other minor items. The
comparative figures used are year on year due to the influence of seasonality
within the different businesses in the Group.
LONRHO PLC
("Lonrho" or the "Company" or the "Group")
Trading Update for the Quarter Ended 31 March 2010
"Lonrho reports strong year on year growth of 25.4% and positive EBITDA of
GBP4.0m for second quarter"
Lonrho Plc (AIM:LONR) today announces its unaudited second quarter trading
results for the three months to 31 March 2010. The Company has performed on
target and delivered strong growth across all of its divisions.
Highlights for the second quarter include:
· Turnover from operations for the quarter increased 25.4% on a reported
basis and 25.2% on a comparable currency basis to reach GBP24.5m. Growth of the
turnover in the second quarter has been driven by consistent organic growth from
existing operations.
· Turnover from operations for the first six months to 31 March 2010
increased 13.9% compared to the same period in the previous year and 23.5% on a
comparable currency basis to reach GBP47.3m.
· EBITDA in the second quarter was a profit of GBP4.0m, compared with a
loss of GBP2.7m in the same quarter in the prior year, reflecting both the
improvement of gross margins and increased turnover across the businesses.
· EBITDA for the year to date was a profit of GBP2.8m, compared with a
profit of GBP1.9m in the same period in the prior year.
· Profit before tax for the quarter ended 31 March 2010 was GBP1.8m
compared to GBP2.2m in the previous year. For the six months ended 31 March 2010
the Company reported a loss before tax of GBP1.5m compared to a profit of
GBP0.6m for the same period last year. However, after eliminating exceptional
gains in the prior year of GBP2.3m (in respect of the closure of SAILS) and a
difference in exchange movements of GBP0.6m, trading profits showed an
improvement of GBP0.8m.
· Net assets at the end of the period stood at GBP101.3m.
· The Company held cash balances of GBP17.1m at 31 March 2010.
· The Company's share price has risen 55.5% between 1st October 2009, the
beginning of the financial year, and 31 March 2010.
Operational Highlights
The second quarter has seen continued performance and delivery in the Group's
core businesses. The Group's core markets are continuing to expand and grow
across the Continent and during April significant new projects previously under
development have reached fruition, namely :
· The Karavia Hotel received its first commercial guests. The Hotel is to
be formally inaugurated by the Government of the Democratic Republic of the
Congo as part of the 50th Anniversary Independence celebrations on June 5th.
· Fly540 delivered its first aircraft to Angola. Commercial operations will
commence in May.
· John Deere Angola received its first substantial order in March 2010.
These new businesses commencing operations will help to drive the Company
forward and deliver its targets for growth and development.
All five divisions (Infrastructure, Agribusiness, Regional Transportation,
Support Services and Hotels) have shown strong turnover growth in their
operations ranging between 16% in Agribusiness to 108% in the Hotel division and
averaging 25% across the Group.
Agribusiness
· Rollex SA (Pty) Limited (51% holding) remains the central platform within
Lonrho's Agribusiness division. Second quarter sales increased 16% compared to
the same period in the previous year and 15% on a comparable currency basis.
· The second quarter has seen a steady increase in air freighted goods
rising by 10% per month between the beginning and end of the quarter. Turnover
has improved steadily over the quarter in line with the increase in air
freighted goods.
· Rollex has successfully increased volumes of fish exports from Namibia to
Europe by 12.6% against the same period in the previous year. The general cargo
division which exports dry goods by both air and sea globally has reported an
increase in volumes of 56.7% against the same period last year.
· Lonagro (John Deere Angola - 51% holding) received its first substantial
order at the end of March for delivery in April 2010. The construction of the
new showroom, maintenance facility, training centre and stores at Katete is
progressing well and is due for completion by the end of June 2010.
· On 18 February the Company announced the acquisition of a 100% stake in
Trak Auto Lda which owns the exclusive dealerships for John Deere and Komatsu in
Mozambique. The acquisition was completed on 8 April 2010. With pre-acquisition
turnover of approximately US$10m per annum and gross profits of US$1.4m, Lonrho
is looking to build revenues and profits substantially over the coming years in
the strongly expanding Mozambique market.
Infrastructure : Luba Freeport
· Revenue for the quarter at Luba Freeport (63% holding) has increased by
44% against the previous year. This encouraging increase is stimulated by
existing tenants and the arrival of new tenants including Noble Energy, whose
facility was completed as scheduled in January.
· The Company strategy of improving margins has been successful and
resulted in gross margins this quarter at Luba Freeport increasing by 8%
compared to the previous year.
· The number of liner and tanker calls to Luba Freeport has seen a
significant increase compared to the previous year and the second quarter saw
the largest number of vessel calls in the port's history. This is due to the
demand for materials and supplies required to support new drilling programmes
that have been initiated by Amerada Hess, ExxonMobil and Noble Energy.
· New tenants in the process of moving to Luba before the end of the year
include Tenaris, a major pipe casing supplier, and Asia Malabo, a ship chandler,
further adding to the range of services provided by the port to the oil industry
in the Gulf of Guinea.
Infrastructure : Kwikbuild
· Turnover at e-Kwikbuild increased 71% in the quarter from the same period
in the previous year and 31% on a comparable currency basis.
· e-Kwikbuild has strengthened the management team by the appointment of
two highly experienced business development managers, one covering the export
market and the other covering the local market in South Africa. These additions
will ensure improved service levels to the existing client base and develop new
market opportunities for growth.
· Requests for quotes and tenders have increased sevenfold compared to the
same period last year. e-Kwikbuild is a preferred supplier on a number of South
African Government tenders which are expected to be awarded in the final half of
the current year.
Hotels
· Hotel Cardoso in Mozambique (59% holding + Management Contract) delivered
occupancy levels for the quarter of 74.3%. Occupancy in same period last year
was 77.7% during the refurbishment of the hotel. There are 24% more rooms
available now than last year. Occupancy rates peaked in March at 86% compared
with 83% in the previous year. Average room rates for the month of March
improved to US$120 per night compared with a room rate of US$83 per night in
March 2009. Average room rates for the 6 months to 31 March 2010 have increased
to US$109 per night compared to US$80 for the same period last year.
· Turnover at the Cardoso increased 81% on the same period in prior year
and 63% on a comparable currency basis
· Hotel Grand Karavia in Lubumbashi, DRC (50% holding + Management
Contract) has completed its US$20m refurbishment programme and the first
commercial guests stayed in April. The hotel is scheduled to be fully
operational in May 2010 providing 216 rooms and suites of the only international
standard accommodation in Lubumbashi, the centre of the burgeoning copperbelt of
the DRC.
· Lonrho Hotels' central reservations system now provides the ability for
guests to reserve rooms online.
Transport
· Lonrho Aviation saw turnover increase by 22% compared to the same quarter
last year and 24% on a comparable currency basis.
· Fly540 Angola took delivery of its first aircraft on 29th April 2010.
Commercial operations will commence in May 2010 with the network coverage
increasing as further aircraft arrive.
· Ghana, the planned third Fly540 hub, is also gearing up to launch
operations mid 2010. Local infrastructure is complete, staff has been recruited
and training is ongoing.
· Fly 540 Kenya has taken delivery of its first CRJ regional jet which will
be used for longer distance regional routes not suitable for turboprops of more
than 1.5 hours complementing the existing fleet of turboprop aircraft. The
introduction of the jet to the fleet is an important step in the expansion of
the airline and the delivery of the connectivity between the three Fly540 hubs
(Kenya, Angola, and Ghana) to deliver a pan-African integrated operation.
· Fly 540 Kenya started flights to Burundi in the second quarter.
Support Services
· Bytes & Pieces (65% holding) has seen revenues grow this quarter by 10%
when compared with the same period last year and 32% on a comparable currency
basis.
· During the quarter Bytes & Pieces successfully completed full IT
infrastructure implementation for Riversdale Mining Limited and Global Alliance
insurance company. Bytes & Pieces is installing Avaya VoIP for an additional two
branches for FNB bank in Mozambique. Bytes & Pieces has also signed seven
Microsoft Enterprise agreements in the quarter with companies in Mozambique. It
is this solid client base and expanding product range that allows Bytes & Pieces
to continue its steady growth.
· Lonrho IT (CES Zambia - 50% holding + Board Control) continues to exceed
expectations and remains on track to achieve US$1m turnover in the first 12
months of operation. The list of clients continues to grow with the addition of
International Commercial Bank, Zambian Breweries, KPMG and PWC. The company is
now a registered supplier to several international banks within Zambia and is
involved in tender processes for contracts totaling US$1.6m spread across a
number of sectors.
· Lonrho IT (CES - 50% holding + Board Control) continues to grow its
operations. CES has been awarded a contract for Avaya VoIP installation for
African Banking Corporation's head office in Botswana and is presently
installing the network infrastructure for Cross Border Road Transport Agency in
Johannesburg.
· Lonrho IT (IndIT - 50% holding + Board Control) is supplying Nexans cable
for the new Vodacom head office in Maputo, Mozambique. Indit has also been
awarded distribution rights for South Africa by Cyberoam for their Unified
Threat Management Firewalls.
· Lonrho Projects SA Pty (70% holding) has commenced its first projects in
the second quarter and produced its first revenue. Revenue is expected to be in
line with first year targets and the groundwork undertaken during the past year
can be seen to be delivering real progress.
· Lonrho Water continues to develop its bottled water projects in
Mozambique, DRC and Angola. The new water purification solutions division is
tendering for sizeable municipal contracts and attracting significant interest
in the new Lonrho bespoke containerised potable water plants.
LonZim Plc
· Lonrho has a 24.61% shareholding in LonZim (AIM:LZM).
· On 26 January 2010, LonZim announced its results for the year ended 31
August 2009, reporting a turnover of GBP2.6m and profit after tax of GBP0.9m.
Lonrho Mining Limited
· Lonrho has a 15.04% shareholding in Lonrho Mining (ASX:LOM).
· Following a successful rights issue in December 2009 Lonrho Mining has
implemented its 2010 exploration programme in the company's highly prospective
Lulo diamond concession in Angola. The programme will define and sample 40 of
the 217 kimberlite pipes highlighted by the radiometric survey carried out by
the company in 2008
· The proposed exploration programme is expected to identify significant
primary (kimberlitic) and secondary (alluvial) diamond deposits during the
current calendar year. Lonrho Mining anticipates being in a position to take
full advantage of the increase in diamond prices predicted for 2012 and beyond.
Audited results and Annual General Meeting
During the quarter the Company released its audited accounts for the year ended
30 September 2009 showing turnover of GBP90.9m and a loss before tax of GBP4.5m
which was exactly in line with the fourth quarter trading update issued in
November 2009.
The Company held its Annual General Meeting on 31 March 2010 at which all
resolutions put to shareholders were duly passed.
Current Trading and Future Outlook
Each of the Company's businesses continued to perform to expectations during the
first half of the year and grew their core operations whilst achieving the
strategic objective to improve margins.
The second half of 2010 will see new operations adding to turnover and
profitability for the Group: the Karavia Hotel in Lubumbashi, 540 Angola and
Ghana and Lonrho Agribusiness incorporating the John Deere and Komatsu
operations in Mozambique through the acquisition of Trak Auto Lda.
It is intended that the next quarterly update for the Company will be released
in July 2010.
David Lenigas, Lonrho's Executive Chairman commented:
"The 25% increase in revenue delivered this quarter demonstrates that Lonrho is
on track to meet its ambitious growth and margin targets for the year. This
success emanates from careful planning, a focus on quality operations,
reliability and the professional standards set by the Lonrho management teams.
Lonrho has GBP17.1m in cash and has solid, performing businesses in strategic
sectors which are well positioned to benefit from, and help deliver, the
emerging economies in Africa. We continue to see the provision of services to
the oil, agriculture and mineral industries as the core economic drivers for
emerging Africa. Lonrho's operations remain aligned with the countries growing
with the boom in these sectors.
I am particularly excited about the expansion of Fly 540, the opening of the
Hotel Karavia in Lubumbashi and the John Deere distributorships for Angola and
Mozambique. Each is a commercial milestone in the development of the Company.
These new operations complement our existing businesses and will further enhance
Lonrho's reputation for delivery in our specific market sectors."
LONRHO GROUP
GROUP TURNOVER
1 JANUARY to 31 MARCH 2010
GBP'000s
+----------------+---------+----------+----------+--------+
| | TURNOVER on a reported basis |
+----------------+----------------------------------------+
| | 3 | 3 months | | |
| | months | to 31 | | |
| | to 31 | March | Variance | Var % |
| | March | 2009 | | |
| | 2010 | | | |
+----------------+---------+----------+----------+--------+
| Agribusiness | | | | |
+----------------+---------+----------+----------+--------+
| Rollex | 12,386 | 10,670 | 1,716 | 16.1% |
+----------------+---------+----------+----------+--------+
| Transport | | | | |
+----------------+---------+----------+----------+--------+
| 540 Group | 4,641 | 3,807 | 834 | 21.9% |
+----------------+---------+----------+----------+--------+
| Support | | | | |
| Services | | | | |
+----------------+---------+----------+----------+--------+
| Bytes & Pieces | 1,802 | 1,642 | 160 | 9.7% |
+----------------+---------+----------+----------+--------+
| Other | 655 | 298 | 357 | 119.8% |
+----------------+---------+----------+----------+--------+
| Infrastructure | | | | |
+----------------+---------+----------+----------+--------+
| Luba Freeport | 2,960 | 2,052 | 908 | 44.2% |
+----------------+---------+----------+----------+--------+
| e-Kwikbuild | 814 | 476 | 338 | 71.0% |
+----------------+---------+----------+----------+--------+
| Hotels | | | | |
+----------------+---------+----------+----------+--------+
| Hotel Cardoso | 1,110 | 612 | 498 | 81.4% |
+----------------+---------+----------+----------+--------+
| Other | 162 | 0 | 162 | N/A |
+----------------+---------+----------+----------+--------+
| Continuing | 24,530 | 19,557 | 4,973 | 25.4% |
| operations | | | | |
| | | | | |
+----------------+---------+----------+----------+--------+
| Shipping | 0 | 0 | 0 | N/A |
| -Discontinued | | | | |
+----------------+---------+----------+----------+--------+
| | | | | |
+----------------+---------+----------+----------+--------+
| Total Turnover | 24,530 | 19,557 | 4,973 | 25.4% |
+----------------+---------+----------+----------+--------+
+----------------+---------+----------+----------+--------+
| | TURNOVER in comparable currency |
+----------------+----------------------------------------+
| | 3 | 3 months | | |
| | months | to 31 | | |
| | to 31 | March | Variance | Var % |
| | March | 2009 | | |
| | 2010 | | | |
+----------------+---------+----------+----------+--------+
| Agribusiness | | | | |
+----------------+---------+----------+----------+--------+
| Rollex | 12,386 | 10,800 | 1,586 | 14.7% |
+----------------+---------+----------+----------+--------+
| Transport | | | | |
+----------------+---------+----------+----------+--------+
| 540 Group | 4,641 | 3,728 | 913 | 24.5% |
+----------------+---------+----------+----------+--------+
| Support | | | | |
| Services | | | | |
+----------------+---------+----------+----------+--------+
| Bytes & Pieces | 1,802 | 1,370 | 432 | 31.5% |
+----------------+---------+----------+----------+--------+
| Other | 655 | 579 | 76 | 13.1% |
+----------------+---------+----------+----------+--------+
| Infrastructure | | | | |
+----------------+---------+----------+----------+--------+
| Luba Freeport | 2,960 | 1,984 | 976 | 49.2% |
+----------------+---------+----------+----------+--------+
| e-Kwikbuild | 814 | 622 | 192 | 30.9% |
+----------------+---------+----------+----------+--------+
| Hotels | | | | |
+----------------+---------+----------+----------+--------+
| Hotel Cardoso | 1,110 | 511 | 599 | 117.2% |
+----------------+---------+----------+----------+--------+
| Other | 162 | 0 | 162 | N/A |
+----------------+---------+----------+----------+--------+
| Continuing | 24,530 | 19,594 | 4,936 | 25.2% |
| operations | | | | |
+----------------+---------+----------+----------+--------+
| | | | | |
+----------------+---------+----------+----------+--------+
| Shipping | 0 | 0 | 0 | N/A |
| -Discontinued | | | | |
+----------------+---------+----------+----------+--------+
| | | | | |
+----------------+---------+----------+----------+--------+
| Total Turnover | 24,530 | 19,594 | 4,936 | 25.2% |
+----------------+---------+----------+----------+--------+
LONRHO GROUP
GROUP TURNOVER
SIX MONTHS to 31 MARCH 2010
GBP'000s
+----------------+---------+----------+----------+-------------+
| | TURNOVER on a reported basis |
+----------------+---------------------------------------------+
| | 6 | 6 months | | |
| | months | to | | |
| | to 31 | 31 March | Variance | Var % |
| | March | 2009 | | |
| | 2010 | | | |
+----------------+---------+----------+----------+-------------+
| Agribusiness | | | | |
+----------------+---------+----------+----------+-------------+
| Rollex | 23,897 | 22,859 | 1,038 | 4.5% |
+----------------+---------+----------+----------+-------------+
| Transport | | | | |
+----------------+---------+----------+----------+-------------+
| 540 Group | 9,818 | 8,013 | 1,805 | 22.5% |
+----------------+---------+----------+----------+-------------+
| Support | | | | |
| Services | | | | |
+----------------+---------+----------+----------+-------------+
| Bytes & Pieces | 3,374 | 3,567 | (193) | (5.4%) |
+----------------+---------+----------+----------+-------------+
| Other | 1,459 | 736 | 723 | 98.2% |
+----------------+---------+----------+----------+-------------+
| Infrastructure | | | | |
+----------------+---------+----------+----------+-------------+
| Luba Freeport | 4,984 | 4,163 | 821 | 19.7% |
+----------------+---------+----------+----------+-------------+
| e-Kwikbuild | 1,388 | 853 | 535 | 62.7% |
+----------------+---------+----------+----------+-------------+
| Hotels | | | | |
+----------------+---------+----------+----------+-------------+
| Hotel Cardoso | 2,080 | 1,312 | 768 | 58.5% |
+----------------+---------+----------+----------+-------------+
| Other | 281 | 0 | 281 | N/A |
+----------------+---------+----------+----------+-------------+
| Continuing | 47,281 | 41,503 | 5,778 | 13.9% |
| operations | | | | |
| | | | | |
+----------------+---------+----------+----------+-------------+
| Shipping | 0 | 1,187 | -1,187 | -100% |
| -Discontinued | | | | |
+----------------+---------+----------+----------+-------------+
| | | | | |
+----------------+---------+----------+----------+-------------+
| Total Turnover | 47,281 | 42,690 | 4,591 | 10.8% |
+----------------+---------+----------+----------+-------------+
+----------------+---------+-----------+----------+-------+
| | TURNOVER in comparable currency |
+----------------+----------------------------------------+
| | 6 | 6 months | | |
| | months | to 31 | Variance | Var % |
| | to 31 | March | | |
| | March | 2009 | | |
| | 2010 | | | |
+----------------+---------+-----------+----------+-------+
| Agribusiness | | | | |
+----------------+---------+-----------+----------+-------+
| Rollex | 23,897 | 20,924 | 2,973 | 14.2% |
+----------------+---------+-----------+----------+-------+
| Transport | | | | |
+----------------+---------+-----------+----------+-------+
| 540 Group | 9,818 | 7,406 | 2,412 | 32.6% |
+----------------+---------+-----------+----------+-------+
| Support | | | | |
| Services | | | | |
+----------------+---------+-----------+----------+-------+
| Bytes & Pieces | 3,374 | 2,873 | 501 | 17.4% |
+----------------+---------+-----------+----------+-------+
| Other | 1,459 | 1,145 | 314 | 27.4% |
+----------------+---------+-----------+----------+-------+
| Infrastructure | | | | |
+----------------+---------+-----------+----------+-------+
| Luba Freeport | 4,984 | 3,850 | 1,134 | 29.5% |
+----------------+---------+-----------+----------+-------+
| e-Kwikbuild | 1,388 | 1,035 | 353 | 34.1% |
+----------------+---------+-----------+----------+-------+
| Hotels | | | | |
+----------------+---------+-----------+----------+-------+
| Hotel Cardoso | 2,080 | 1,057 | 1,023 | 96.8% |
+----------------+---------+-----------+----------+-------+
| Other | 281 | 0 | 281 | N/A |
+----------------+---------+-----------+----------+-------+
| Continuing | 47,281 | 38,290 | 8,991 | 23.5% |
| operations | | | | |
+----------------+---------+-----------+----------+-------+
| | | | | |
+----------------+---------+-----------+----------+-------+
| Shipping | 0 | 1,187 | -1,187 | -100% |
| -Discontinued | | | | |
+----------------+---------+-----------+----------+-------+
| | | | | |
+----------------+---------+-----------+----------+-------+
| Total Turnover | 47,281 | 39,477 | 7,804 | 19.8% |
+----------------+---------+-----------+----------+-------+
Enquiries
+---------------------------------------+---------------------+
| Lonrho Plc | |
+---------------------------------------+---------------------+
| David Lenigas, Executive Chairman | +44 (0)20 7016 5105 |
+---------------------------------------+---------------------+
| Geoffrey White, Chief Executive | +44 (0)20 7016 5105 |
| Officer | |
+---------------------------------------+---------------------+
| David Armstrong, Finance Director | +44 (0)20 7016 5105 |
+---------------------------------------+---------------------+
| | |
+---------------------------------------+---------------------+
| | |
+---------------------------------------+---------------------+
| Pelham Bell Pottinger | |
+---------------------------------------+---------------------+
| Charles Vivian | +44 (0) 20 7337 |
| | 1538 |
+---------------------------------------+---------------------+
| | +44 (0) 7977 297903 |
+---------------------------------------+---------------------+
| James MacFarlane | +44 (0) 20 7337 |
| | 1527 |
+---------------------------------------+---------------------+
| | +44 (0) 7841 672831 |
+---------------------------------------+---------------------+
| Klara Kaczmarek | +44 (0) 207337 1524 |
+---------------------------------------+---------------------+
| | +44 (0) 7912 539 |
| | 973 |
+---------------------------------------+---------------------+
| | |
+---------------------------------------+---------------------+
| 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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