www.cambriaafrica.com
Cambria Africa plc is a long term, active investment company, building a portfolio of investments primarily in Zimbabwe.
The name of the Company is inspired by the Cambrian period in the earth's development, also referred to as the "Cambrian explosion".
It represents an anticipated period of rapid development and a promising new era for the Company, its shareholders and employees – alongside the current economic renaissance of Zimbabwe.
It has been listed on the AIM market of the London Stock Exchange since 2007. Until February 2012 the Company was known as LonZim plc.
LonZim has the foundations to profit from Zimbabwe recovery, says WH Ireland
LonZim (LON:LZM), which holds diversified assets in Zimbabwe, has the foundations in place to profit from a recovery in the country, says house broker WH Ireland.
The broker rates the stock a "speculative buy" in a note, following the release of the firm's final results on Friday (November 11).
"The shares currently stand at a 46 per cent discount to tangible NAV (net asset value) of 41p per share.
"Should the economic recovery in Zimbabwe continue, and the political situation were to remain relatively stable or improve, this gap stands to narrow, and the value of the underlying assets should appreciate," said analyst Derren Nathan.
But the analyst concedes that whilst the asset backed valuation is attractive, the geopolitical and economic outlook is subject to volatility.
All divisions, except aviation, showed revenue growth and group turnover increased 21 per cent to £5.9 million. However, the loss before tax widened from £5.7 mln to £6.6 mln.
"The Zimbabwe economy is experiencing strong growth, albeit from a weak base, and GDP grew 8.1 per cent in 2010. Government forecasts project growth of up to 9 per cent in 2012 but the global outlook and a heavy reliance on imports are amongst the key risks to future growth," added Nathan.
The company's core investments include the Leopard Rock hotel, a commercial and security printing company and ForgetMeNot Africa, which provides ‘message optimiser’ applications for mobile phones.
There is also Paynet, which provides financial software and services and the Aviation division which is yet to start operating its own routes.
"The divisions are all positively geared to a continuing recovery. LonZim has invested in the appropriate infrastructure and management teams to optimise performance," said the broker.
