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Lonrho unveils strong Q1 financials, group revenue up 21 pct

Last updated: 15:04 03 Feb 2011 GMT, First published: 16:04 03 Feb 2011 GMT

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Lonrho (LON:LONR) revealed a strong set of first quarter results, driven by a 21 percent year-on-year increase in group turnover.

The company is essentially a growing Africa-focused conglomerate with assets spanning agriculture, infrastructure, transport, support services, its own airline and a chain of hotels.

In the three months to 31 December 2010, Lonrho’s turnover increased to £27.6 million

The improved performance saw the company grow earnings by £2.7 million. It reported first quarter earnings (EBITDA) of £1.4 million, compared to a £1.3 million loss in the same period of the previous year.

It ended the period with (net) assets worth £124.5 million and £34.3 million cash in the bank.

Most notably the company’s value has risen substantially during the period, with its market capitalisation now 63.6 percent higher than at the start of the quarter (30 September 2010).

"Lonrho has delivered a 21 percent growth in turnover for the period and continues to see strong, growing, market demand for each division,” chairman David Lenigas said.

“Within the portfolio of businesses there have been some excellent performances.” 

He adds: “Africa is a strong emerging market that has real opportunities and is delivering real GDP growth and exceeding economic expectations. Lonrho is well positioned to continue to grow during the year."

Lonrho’s agribusiness division led the way in the first quarter with particularly strong revenue growth, 31.6 percent better than the same period in the previous year.

The top performing business units were the Oceanfresh seafood business and the John Deere dealership in Mozambique, Trak-Auto.

Rollex, the produce packaging and distribution unit, also saw increased volumes but its growth was hampered during the quarter by a number of external issues - the strong Rand, unseasonal rains in South Africa and blocked distribution routes (December’s closure of Heathrow airport due to snow).

Lonrho’s infrastructure businesses also performed well. The Luba Freeport business stood out with a 30 percent increase in turnover, as the port continued to add new clients and revenue streams. Similarly the hotel also had a strong quarter, across all its businesses. 

The Mozambique-based IT firm Bytes & Pieces was the strongest in Lonrho’s support services division, with an 11.6 percent increase in turnover.

Overall the company said it has continued to show strong growth with the continuation of trends shown throughout 2010. It also stressed that a number of exciting developments will further improve the group's performance in the coming quarters.

“During the coming quarters the Group will continue developing all of its businesses in order to meet demand. In addition to this, the Group will continue to look at strategic acquisitions which will strengthen the business divisions”, the company said.

 

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