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17/05/2012

Lonrho CEO says 2012 is all about delivering strong growth across the business

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Additional Information
Market: AIM
Sector: Travel, Leisure & Hospitality
EPIC: LONR
Latest Price: 10.25p  (3.54% Ascending)
52-week High: 21.25p
52-week Low: 8.10p
Market Cap: 160.82M
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Lonrho PLC
www.lonrho.com

Lonrho is a pan-African company with a diverse portfolio of investments focusing on Africa.  Its investments range from primary infrastructure to transportation, support services, hotels and natural resources. The Company is focused on servicing Western investment and African business by investing in emerging sectors across Africa, creating hubs of business through key investments. Lonrho is re-establishing a significant presence on the African Continent through strategic investments across sectors in fast-growing African economies.

Full Lonrho PLC profile here
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Lonrho geared to US consumer recovery, suggests broker

23rd Jan 2012, 1:53 pm by Philip Whiterow The acquisition of businesses particularly in Agri-division has allowed Lonrho to control the supply chain more effectively

Africa-focused conglomerate Lonrho (LON:LONR) is in a prime position to benefit from growth in the continent’s economy and as US consumers regain their confidence, says broker Daniel Stewart.

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.

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