TIDMLONR
RNS Number : 6248C
Lonrho PLC
03 May 2012
3 May 2012
Lonrho Plc
("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 Reported Adjusted
to March growth like-for-like*
2012 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 Services 5.5 10.0% 1.9%
Lonrho Plc 58.9 75.0% 26.1%
----------------------- ------------ --------- ----------------
Group Gross
Margin 24.7% 1.2% 2.8%
----------------------- ------------ --------- ----------------
-- 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
This information is provided by RNS
The company news service from the London Stock Exchange
END
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