---Adds broker comment and share price---

A “booming” African economy and strong growth from its agribusiness and airline operations helped underlying revenues surge at Lonrho (LON:LONR).

On a comparable basis, sales rose by 26 per cent in the three months to March while gross margins improved to 24.7 per cent.

Total turnover at the Africa-focused conglomerate rose by 75 per cent to £58.9 million.

Its Agri-logistics business had been helped by new contracts that allowed it to increase load capacity, efficiency and volumes and boosted margins across the agribusiness division, it said.

Lonrho also agreed to buy LonAgro Tanzania to add a third territory to the Lonrho - John Deere partnership in Africa, supplementing the existing relationships in Mozambique and Angola.

Lonrho has also agreed with John Deere for the opening of a dealership in South Sudan, to become operational this quarter.

Agribusiness revenues rose by an underlying thirty per cent, while the airline and transport arm saw a 55 per cent leap as a second aircraft at Fly540 Angola increased the number of routes and capacity. A third aircraft will become operational this month.

Lonrho also recently signed an exclusive franchise agreement for Africa with Sir Stelios Haji-Ioannou's easyGroup. 

It will develop the first easyHotel 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.

David Lenigas, Lonrho's executive chairman, said: "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."

Broker Panmure said today's results were an early indication of Lonrho's potential growth.

"We expect momentum to build as new contracts in agribusiness, infrastructure and hotels ramp up through FY 2012E, and we maintain our forecasts for adjusted PBT (profit before tax) of £20.8m," said analyst Damian McNeela in a note.

The broker repeated its 'buy' rating for the stock and 21 pence-a-share price target.

As at 2.10pm, Lonrho shares were up 2.33 per cent, to change hands at 11 pence each.

On a comparable basis sales rose by 26 per cent in the three months to March while gross margins improved to 24.7 per cent.

Total turnover at the Africa-focused conglomerate rose by 75 per cent to £58.9 million.

The firm said its Agri-logistics business had been helped by new contracts that allowed it to increase load capacity, efficiency and volumes and boosted margins across the agribusiness division.

Lonrho also agreed to buy LonAgro Tanzania to add a third territory to the Lonrho - John Deere partnership in Africa, supplementing the existing relationships in Mozambique and Angola.

Lonrho has also agreed with John Deere for the opening of a dealership in South Sudan, to become operational this quarter.

Agribusiness revenues rose by an underlying thirty per cent, while the airline and tranpsort arm saw a 55 per cent leap as a second aircraft at Fly540 Angola increased the number of routes and capacity. A third aircraft will become operational this month.

Lonrho also recently signed an exclusive franchise agreement for Africa with Sir Stelios Haji-Ioannou's easyGroup. It will develop the first easyHotel 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.

David Lenigas, Lonrho's executive chairman, commented:  "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."

---Adds broker comment---

Africa-focused conglomerate Lonrho (LON:LONR) has started 2012 encouragingly with new business wins across all divisions.

The company today reported strong revenue and profit growth in 2011 as the firm sees rapid development in the emerging African market.

It reported revenue for continuing operations of £46.1 million in the final quarter of an extended 15 month financial year to December 31 - representing a 67 per cent increase from the same period in 2010.

Of this, the firm's major agribusiness accounted for £22.1 million of revenue.

Because of the group's increasing profit expectations over coming years, it intends to introduce a dividend policy to be announced this year and put in force in 2013.

For the 15 months, net operating profit was £6.8 million, up from a break-even position in the 12 months to September 2010.

As at December 31, net assets stood at £155.7 million, compared to  £151.6 million as at three months earlier on September 30, 2011 and £127.7 million on September 30, 2010.

A the end of last year, the firm had £12.7 million in cash, compared to £14.6 million at September 30, 2011 and £7.8 million at September 30, 2010.

Chairman David Lenigas said: "Lonrho has made good progress during the period to the end of 2011. Financial performance in the final quarter of the year has been very encouraging and gives confidence moving into 2012.

"Having completed the company's strategic investment programme, each operating division is well aligned to service the expansion in demand from the growth in emerging Africa and now has the necessary infrastructure and platforms in place to deliver strong growth and improved margins for 2012 and beyond."

The group operates across five divisions - agribusiness, transportation, infrastructure, hotels and support services.

Among the highlights of the final quarter, in the infrastructure business, Luba Freeport, the oil logistics terminal, saw a significant increase in drilling and exploration activity in the Gulf of Guinea.

In transportation, Fly540 began flights in Ghana between four domestic destinations completing the third strategic hub to the network.

The airline also enjoyed a strong Christmas period flying a total of 58,619 passengers in December, Lonrho said.

Passenger numbers continue to grow on all routes, it added.

Following today's results, broker Panmure said in a note: "We continue to believe that the 2012 will be a year of significant profit growth and reiterate our Buy recommendation and 21p price target."

Africa-focused conglomerate Lonrho (LON:LONR) has started 2012 encouragingly with new business wins across all divisions.

The company today reported strong revenue and profit growth in 2011 as the firm sees rapid development in the emerging African market.

It reported revenue for continuing operations of £46.1 million in the final quarter of an extended 15 month financial year to December 31 - representing a 67 per cent increase from the same period in 2010.

Of this, the firm's major agribusiness accounted for £22.1 million of revenue.

Because of the group's increasing profit expectations over coming years, it intends to introduce a dividend policy to be announced this year and put in force in 2013.

For the 15 months, net operating profit was £6.8 million, up from a break-even position in the 12 months to September 2010.

As at December 31, net assets stood at £155.7 million, compared to  £151.6 million as at three months earlier on September 30, 2011 and £127.7 million on September 30, 2010.

A the end of last year, the firm had £12.7 million in cash, compared to £14.6 million at September 30, 2011 and £7.8 million at September 30, 2010.

Chairman David Lenigas said: "Lonrho has made good progress during the period to the end of 2011. Financial performance in the final quarter of the year has been very encouraging and gives confidence moving into 2012.

"Having completed the company's strategic investment programme, each operating division is well aligned to service the expansion in demand from the growth in emerging Africa and now has the necessary infrastructure and platforms in place to deliver strong growth and improved margins for 2012 and beyond."

The group operates across five divisions - agribusiness, transportation, infrastructure, hotels and support services.

Among the highlights of the final quarter, in the infrastructure business, Luba Freeport, the oil logistics terminal, saw a significant increase in drilling and exploration activity in the Gulf of Guinea.

In transportation, Fly540 began flights in Ghana between four domestic destinations completing the third strategic hub to the network.

The airline also enjoyed a strong Christmas period flying a total of 58,619 passengers in December, Lonrho said.

Passenger numbers continue to grow on all routes, it added.

Yesterday, the company announced it would open the first easyHotel.com branded hotel by the end of the year under its exclusive franchise agreement with Sir Stelios Haji-Ioannou's easyGroup.

The Africa-focused conglomerate is turning the historic former Stuttafords Department Store building in the Johannesburg Central Business District (CBD) in South Africa into the easyHotel Rissik Street.

Africa-focused conglomerate Lonrho (LON:LONR) today revealed that its prefabricated construction unit, Kwikbuild, has won a new contract worth £10.2 million.

The contract sees Kwikbuild building 116 new schools in remote parts of South Africa, in the Eastern Cape. 

In all, Kwikbuild will create 398 classrooms and eight laboratories.

"There is a chronic shortage of adequate classroom facilities throughout Southern Africa and Lonrho is pleased that it can offer a solution to Governments to help address the current demand for this type of infrastructure,” said chairman David Lenigas.

"Kwikbuild is seeing increasing demand for its products not only in South Africa but across the Continent. Quality pre-fabricated buildings are a quick and cost effective way to meet the demand for schools, clinics, offices and accommodation. 

"The benefit of the prefabricated building is that it can be up and working in days rather than months."

The prefabricated classrooms will be manufactured at Kwikbuild’s facilities in Cape Town. These buildings have a design life of more than 30 years.

The broker suggests Lonrho’s strategy of tapping into Africa’s growth through exposure to oil & gas, mining & agriculture has started to reap rewards.

Crucially, the acquisition of businesses particularly in Agri-division has allowed Lonrho to control the supply chain more effectively.

This involves increasing its control over fresh produce (OceanFresh & Fresh Direct) to processing & packaging and transporting (Lonhro Logistics, formerly Grindrod & Rollex) products to supermarket shelves in the US, Europe, South Africa and Asia. 

As the US economy comes out of recession large retailers like Costco and Wal-Mart are well placed to benefit, which is good news for Lonrho (Oceanfresh in particular) as it can supply rising consumer demand in the US.

Furthermore, Wal-Mart’s international reach provides opportunities for Lonrho to expand into markets outside of the US such as Mexico, Brazil and China.

The group’s hotels, transportation and support services divisions are also well placed as business activity and consumer demand across Africa increases generally.

Daniel Stewart expects the firm to make pre-tax profits of £18.8 million in 2012 rising to £37.2 million in 2013 on revenues of £282m and £370m respectively. Its sum-of-the-parts value is 19.2p per share.

The broker has a buy stance on the shares, which rose 6% to 12p today.

It is adding two new territories, Tanzania and South Sudan, to its current business network. Lonrho is already the exculsive supplier of John Deere tractors and farming machinery in Mozambique and Angola.

"The expansion of Lonrho's exclusive John Deere dealerships, adding Tanzania and South Sudan, builds on the company's excellent relations with John Deere and our continued aim to develop John Deere distribution in the agricultural markets in Africa,” said chairman David Lenigas.

“The established Lonrho / John Deere dealerships in Mozambique and Angola are demonstrating that the fully supported approach offering comprehensive maintenance, training and spare part support, and not just sales, delivers increased market share and long term growth for the businesses." 

According to Lonrho, Tanzanian growth will outperform both sub-Saharan Africa and global growth rates over the coming years. It believes that agriculture will contribute 45 per cent of the country’s GDP.

It says the market for agricultural equipment is already substantial in Tanzania.

But the market will grow quicker in the future as the Tanzanian government is giving significant attention to the sector. A government backed public-private partnership aims to stimulate commercial scale agricultural productivity, Lonrho added.

Lonrho is paying US$1.4 million to acquire the Tanzanian business. This is being funded from the firm’s existing cash reserves.

Meanwhile, Lonrho says the South Sudan territory has a vast natural resource base and huge agricultural potential. According to Lonrho more than 90 per cent of the country’s land being suitable for farming.  

Additionally significant foreign direct investment and international donor funding is expected to support large scale agricultural development in the future.

African conglomerate Lonrho (LON:LONR) today announced that it has become participant in a United Nations initiative to promote corporate responsibility.

It is now a signatory of the UN Global Compact.

Lonrho explain that the Global Compact is a strategic policy initiative for businesses that are committed to aligning their operations and strategies with ten universally accepted principles in the areas of human rights, labour, environment and anti-corruption. 

This helps ensure that markets, commerce, technology and finance advance in ways that benefit economies and societies everywhere, it added.

"The Board is delighted to become a participant in the UN Global Compact,” said chief executive Geoffrey White.

“Through our commitment to the ten principles, and our own corporate responsibility values, we encourage all our subsidiaries throughout Africa to achieve greater social, environmental and local economic benefits - and encourage others within our sphere of influence to do the same."

According to Lonrho the Global Compact is the world's largest voluntary corporate responsibility initiative with over 8,700 corporate participants and other stakeholders in over 135 countries.

The company said it will report on the ways in which it follows these ten principles each year. Lonrho has accepted an invitation to serve on the initiative’s advisory group. 

Africa-focused conglomerate Lonrho (LON: LONR) is to raise a net £25.4 million from new and existing shareholders to fund its expansion plans.

The group, which runs hotels, ports, an airline and a trucking business in Africa, said it has no specific use for the money, but wants a war chest to be able to take advantage of opportunities through acquisitions or new business developments as they arise.

Lonrho will raise the cash through a firm placing at 10p to raise £16.1 million gross, while a further £10.8 million will come from existing shareholders through a placing and open offer also at 10p.

Upon completion, the new shares will represent approximately 17.2 per cent of the enlarged share capital. 

Executive chairman David Lenigas, who will conditionally subscribe for 10 million shares in the placing and offer, said: “We are delighted at the strong level of support from existing and new shareholders for Lonrho to continue to develop and expand its business. We are seeing a growing interest from global institutions in the opportunities to take part in supporting the growth in the agriculture, oil and mineral sectors in Africa, the specific areas where Lonrho operates."

The price of the placing is a zero discount to yesterday’s closing share price.

Lonrho’s revenues rose by 35 per cent to of £81.4 million in the six months to end-September, while pre-tax profit soared to £5.8 million from £2 million.

Lonrho is an Africa-focused conglomerate whose interests span agriculture, hotels and transportation. Its focus is sub-Saharan Africa where gross domestic product is forecast to grow at over 5.8 percent in 2012. 

In a note to clients today WHI’s Mathew Davis said that many of the ‘headwinds’ that have held back Lonrho’s financial progress in 2011 are not likely to be repeated next year.

Davis believes that Lonrho is set for a period of growth should the expansion go to plan, although some execution and delivery risks still exist. 

“Material contract awards have further evidenced the significant opportunities sub-Saharan Africa can offer Lonrho and what should be a period of significant future revenue and profit expansion,” Davis said. 

He added: “Assuming roll-out proceeds to plan, our model looks for a 60 per cent compound increase in revenue over the two-year forecast horizon, earnings estimated to increase by 324 per cent.”

The analyst’s sum-of-the-parts valuation suggests that the stock’s medium term fair value of 23p. He repeated a ‘buy’ recommendation for the stock.

“For Full Year 2012 we look for pre-tax profit to increase to £23 million, driven by contract awards, full year contributions from recent acquisitions and the launch of new airline routes by Fly540,” Davis added.

He says working capital demands are set to increase further in Full Year 2012 driven by export orders for the Oceanfresh and Rollex agri-distribution businesses. 

According to Davis Lonrho needs an additional £10 million and this would be financed by specific stock backed trade-based financing.  

Earlier today Lonrho moved to re-assure investors on current trading as it said there had been no “material change” in its prospects.

It issued a brief stock exchange statement following a sharp dip in the share price towards the end of business yesterday.

The short message to shareholders also revealed: “Lonrho is currently in the process of meeting with its major shareholders and other current and new institutional investors to explore ways to fund exciting new growth opportunities that are available for the company and will only proceed with a funding providing such terms are acceptable to the board.”

In its last update earlier this month the company revealed it was making strong progress as it reported a 190 per cent jump in pre-tax profit for the six months to September 30 to £5.8 million.

"During the period, Lonrho has completed five synergistic and strategic acquisitions to further develop our core capabilities and add further to revenues and margins. 

“We believe that in an increasingly turbulent global economic environment, Africa is a very attractive investment opportunity," said chairman David Lenigas at the time of the last results.

Lonrho (LON:LONR) moved to re-assure investors on current trading as it said there had been no “material change” in its prospects.

It issued a brief stock exchange statement following a sharp dip in the share price towards the end of business yesterday.

The short message to shareholders also revealed: “Lonrho is currently in the process of meeting with its major shareholders and other current and new institutional investors to explore ways to fund exciting new growth opportunities that are available for the company and will only proceed with a funding providing such terms are acceptable to the board.”

Lonrho is an Africa-focused conglomerate whose interests span agriculture, hotels and transportation.

Its focus is sub-Saharan Africa where gross domestic product is forecast to grow at over 5.8 percent in 2012. 

In its last update earlier this month the company revealed it was making strong progress as it reported a 190 per cent jump in pre-tax profit for the six months to September 30 to £5.8 million.

"During the period, Lonrho has completed five synergistic and strategic acquisitions to further develop our core capabilities and add further to revenues and margins. 

“We believe that in an increasingly turbulent global economic environment, Africa is a very attractive investment opportunity," said chairman David Lenigas at the time of the last results.