Lonrho’s (LSE: LONR) trading update pleasantly surprised Edison Investment Research, which said its full year figures were ahead of forecasts as all of the group’s five trading divisions performed in line with expectations.
The Africa focused conglomerate reported a 312% hike in Q4 turnover to £29.6 million, while like for likes soared 88% year on year. Revenues for the year to date increased 55% on a reporting basis and 266% on a like for like basis to £90.8 million. The company’s EBITDA (earnings before interest, tax, depreciation and amortisation) turned positive, amounting to £9.3 million compared to a loss of £7 million for the equivalent period of the previous year, while the pre-tax loss for the year ending 30 September narrowed to £4.5 million from a loss of £38.7 million.
The full year revenue of £90.8 million was 2% ahead of Edison’s forecast, while EBITDA of £2.3 million beat projections by £5 million, or almost 20%.
The group’s largest division, Agribusiness, accounted for 62% of the total revenues. The Kwikbuild business, which was badly affected by the recession with its revenues halving compared to the previous year, started picking up with a fourfold increase in the number of projects released for tender in the final quarter of the year, making for revenues of £0.3 million, double the turnover for the previous quarter, while new orders worth £1.5 million were secured.
Edison said it would not revisit its valuation of Lonrho until February, when preliminary full year figures are released and the group will have commented on Q1 trading.
Shares in Lonrho last traded at 8.43 pence per share.