Share Name Share Symbol Market Type Share ISIN Share Description
Lonrho LSE:LONR London Ordinary Share GB0002568813 ORD 1P
  Price Change % Change Share Price Shares Traded Last Trade
  +0.00p +0.00% 10.00p 0 06:30:08
Bid Price Offer Price High Price Low Price Open Price
0.00p 0.00p - - -
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
General Financial 206.5 -6.3 -0.1 - 170.17

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kibu: Lonrho imminently sinks below the public waves yet the scandals remain. What fun are PIs going to miss now debate will be curtailed? Cambria (formerly Lonrho Zimbabwe) has just settled with Lonrho's new owners for a fraction of their claim. Yet this was for far more than Bruiser and Slasher acknowledged. [Er, didn't Bruiser and Slasher set up Lonrho Zimbabwe aka LonZim and then run down the share price by 90% before resigning and "selling" out to LONR?] Meanwhile, the Rollex and LONR smuggling story [and, of course, this does not involve fastjet, where any people doing anything bad were not involved at anytime whenever that was] rolls on. From the first public Rollex posting I have been (predictably?) negative and critically questioned the asset purchase value, especially Rollex's De Robillard's incentive to sell. Some posts were, perhaps, squashed or openly mocked. This article gives more detail hxxp:// Lonrho kept a bunch of Rollex models (Corgi?) in the boardroom at Arlington Street. There were no cigarettes in the ones I handled there. Their preferred lawyer, Mischon de Reya, took me to lunch but didn't smoke. Then again, that was years ago. And then again, Lonrho used to be a LSE-listed share and then again the directors promised a dividend in 2013 and then again David Lenigas was the Executive Chairman and then again he used to angrily wave a little stick at me claiming he had my mobile (still awaiting proof) and then again he and "Oryx White" lost many SA miners' significant equity while personally enriching themselves and then again that made me a little angry. Meanwhile, in Blighty, many gullible PIs lost thousands. A few nimble opportunists made a quick buck. The BoD's profiteering is evidenced by a straightforward 2006 comparison with their 2012 salaries, benefits and waist measurements. Whether Lonrho, whether FSAfrica, whether investment, whether politics; weather affects peaches, pilchards and profits. Evidence of any has proved as elusive as fresh khat on Edgware Road and that times change. Something Lonrho has never been is a bellwether. kibu with a nod to Tiny [RIP]
kibu: 'Maybe "buccaneering" was the right word?' 14.3.13 "A buccaneering stock for adventurous investors" was how MoneyWeek headlined a feature on Lonrho a year ago. Calculating an "intrinsic worth of more than 15p a share" they wrote "BUY at 10.25p." At the time I criticised the article as being top-heavy on the hubris of African statistics and showing little insight into Lonrho's financials. The writer quoted "(2011) operating profits soaring to £12.2m" adding that they "were slightly flattered by a £17m 'book' gain from 200,000 fruit trees yet to mature." Slightly? Lonrho's management has had seven years of fruitless adventure: an enormous hole in the P&L (expanded annually by 'extraordinary' figures); share price lower than in 2005; no prospect of dividends; damaged management credibility; and a far from healthy cash position. It's an unattractive body corporate kept alive through regular equity placing transfusions. MoneyWeek wrote that February 2012 was a "cheap entry point." One wonders about the present worth of the "intrinsic 15p." At 5.95p on the bid, a price 45% lower now, it's still not cheap but certainly more realistic. kibu
kibu: "Easysquat, Easyerror, Investment stutter?" 14 January 2013 It seems that parts of the building where Lonrho/Easyhotel plan to establish their first African hotel were more damaged than expected. The landmark site, built in 1893, and occupied at street level by McDonalds has not been officially occupied for a decade. Squatters earlier stripped parts of the building according Renney Plit, COO of Afhco Group, the owner. Yet "Lonrho has signed a 30 year lease on the Stuttafords site" was reported on BB posters' cherished website proactiveinvestors on 3 April 2012 with the headline 'Lonrho to open first easyHotel in Africa by the end of 2012.' It didn't happen. Afhco's website has been as quiet about the matter as Lonrho's, and Easyhotel's, since the end of May 2012. The Easyhotel saga is part of an established pattern in the Lonrho chain of ventures that includes Fastjet. Discussion about the runway lengths and quality of African airports is, thankfully, underway. These are relevant to the future direction of Fastjet/Fly540. Will the routes unsuitable for A319s be sold or retained with different aircraft? No doubt the BoD has considered these issues. However, the BoD of Fastjet is comprised of "experts" who have been losing money for SEVEN years running an airline in Africa and others who have success in Europe. It's a curious mix and ripe for hubris. Fly540's issues with fuel costs and pilot recruitment have been commented on via CAPA (quoting Lonrho), Fly540 managers in the press and various articles on ETN. Litigation threats against Fly540 could well affect Fastjet. Clearly there are interests ranged in heating up the share price that reject cold facts and discussion in public forums.. Lonrho has announced other Fly540 launches since 2006 that never reached the end of the runway. (Two never left the hangar.) When you get to your destination, you need somewhere to sleep. Easyhotel? A leatherette seat at OR Tambo would presently appear to be the best Lonrho can offer or a bench at the corner of Rissik and Pritchard. The BoD has made teasing comments about a dividend. Present developments at Fastjet and Easyhotel will not help clear the P&L deficit anytime soon. kibu
kibu: TSK 1 has, regrettably, yet understandably, gone quiet of late. There's nothing positive about Lonrho at the moment. But if fastjet booms Lonrho's holding will benefit. Nothing positive on Lonrho? Well, not true, but energy costs are putting the screw on logistics and there's been rough weather that didn't suit the peaches. BTW, how come African countries don't figure as peach producers but Lonrho suddenly becomes a major producer? Two extra questions about Lonrho are a) when will operating cash flow turn positive (only placings have put logs on the fire since 2006); b) will the retained earnings deficit be eliminated in 2013 or 2014 allowing dividends to be paid in 2014 or 2015? Lonrho's share price is 400% up on 4 years ago yet little has changed. From the present high valuation, there's an awfully long way to fall. No wonder it's down 30% in the last 8 months. Another 50% fall would still leave some investors with 150% profit. There's the risk. kibu
esteenfeldt: Below are some useful selected numbers copied and pasted from the latest Daniel Stewart's research note on LONRHO. It should be noted that Daniel Stewart& Company have a formal business relationship with Lonrho. Please refer to the company's disclaimer in the full report issued by Daniel Stewart& Company. Valuation ~ Very Attractive Sum Of The Parts (SOTP) ~ Implies 2x current price Our SOTP valuation is based on multiples applied to profits in the core divisions (Agribusiness, Infrastructure, Support Services and Hotels). We use EBITDA multiples for 2013 from Emerging Market indices. For the Agribusiness we use the MSCI Emerging Markets Index which points to 10.3x 2013 EBITDA, for Infrastructure we use MSCI World Infrastructure Index multiple of 7.7, for Support Services we use the MSCI Emerging Markets Support Services Index multiple of 9.6x and finally for Hotels we use the 2013 EBITDA multiple of 10.3x for City Lodge which is a consumer friendly priced chain of hotels in South Africa and listed on the Johannesburg Stock Exchange (JSE). The separation of FastJet (Transportation) where Lonrho holds 67.4% of the market value provides a standalone market valuation. Lonrho sold its stake in both LonZim (now Cambria Africa) where it had a c.23% holding and Lonrho Mining where it held c.14% of the share capital and these holdings are therefore omitted from our SOTP valuation below. Our EBITDA forecasts for 2013 below excludes gain on biological assets within the Agribusiness instead we include what we believe the book value of the biological assets should be on the balance sheet at the end of 2013. Finally, our SOTP points to a value of 21p per share however our understanding is that £44m of convertible bonds is triggered at a share price of 15.8p. Therefore after including 278m additional shares from bonds converting we arrive at a price of 20.1p a share. This is our new target price for the business and implies c.60% upside from the current share price
kibu: At the risk of dissing anyone's party, look at LONR's 7 year chart. This covers the period since David Flatulence (aka Lenigas) belched onto the scene. Any of the colic 'bulls' presenting views here should compare the current share price with that before David Lenigas first broke wind. The 'hot air' behind Lonrho's share price has been "known" by the cogniscenti since Feb 2011. Ho! The share price since has fallen 50%. There is little to stop the inexorable fall in LONR. Not so long ago LONR was at 1.9p. The current 9p+ price is a) an opportunity b) an over-priced risk that relies on a consistently non-achieving management Anyone that has posted positively on this BB about LONR is 'cordially invited' to explain their rationale in a "non-PR" way. Please diss me if you can. I've correctly made many big calls about LONR since 2008. ki blah blah blah since then. expressed. the time that the present management
skintvestor: Article taken from the iii website "Stock to Watch" A recent bounce into profit marks AIM-listed emerging conglomerate Lonrho (LONR) as a means of exposure to African investment - itself reflecting a global bull market in hard and soft commodities. This could have a good few years to run, despite profit-taking being likely along the way. While Africa involves political risks, the Chinese for example are committed investors to secure supplies of raw materials for their own development priorities. Such activity will help boost transport and hotels hence the logic for re-creating Lonrho with a spread of interests, quite in the mould of founder Tiny Rowland's original vision. Lonrho was broken up during the mid-nineties corporate fashion for "focus" but is again pursuing diversity with zeal. The art for investors is being involved during the growth rather than consolidation phase. Agriculture is the main contributor, tying in usefully with a bull market in soft commodities: seafood, fruit and vegetables serving healthier lifestyles in Western end-markets. Transport involves domestic airlines, a useful niche in Africa with load factors up 19% on the year. Infrastructure is ports and related building services. There is also a Hotels division and Support Services, mainly IT. A 2 November trading update cited £2.9 million pre-tax profit on £33.6 million turnover for Lonrho's fourth quarter to end-September, marking a break into profit after losses since the 2005/06 year. Company REFS shows Panmure Gordon, the joint company broker, projecting normalised pre-tax profit of about £18 million in Lonrho's current year to September 2011 equating to earnings per share of about 1.2p. At 17p a share currently, the market capitalisation is near £200 million. No dividend is anticipated although the kind of investor here would probably prefer cash flow retained, to maximise capital growth. So you face quite a speculative price-earnings multiple in the mid-teens, for an emerging markets business with above average risks. The re-rating is indicative however, that enough buyers ready to take "Africa/commodities" seriously to judge the potential rewards as worthwhile. Being AIM-listed with a normal market size of about 20,000 shares, possibly there has been a bit of squeeze up, anticipating further news. This kind of share is prone to be more volatile than the wider market, in particular being sensitive to changes in investors' risk appetite. So if you believe the general pattern is likely to continue - of market rises punctuated with sudden falls, amid occasional global jitters - then Lonrho is worth monitoring to buy when the wider market takes a hit. REFS also shows Lonrho's ownership register as mainly enterprising international investors; indeed the company has quite a maverick chairman in David Lenigas, the Australian miner who has promoted various quoted companies internationally. UK institutions would probably want more by way of a financial record than swallow a hefty profit projection linked to a group being put together quite quickly, and after a few years' losses. While Lonrho has always been a share for enthusiasts among British private investors, perhaps some recall the risks with this kind of business model. Various conglomerates imploded after the 1980's boom, as the early 1990's downturn exposed managers who had bitten off more than they could chew by way of acquisitions and debt. Even the more conservatively managed diversified firms saw their share prices linger at a stubborn discount to intrinsic value. But if a management is adept, economic history also shows conglomerates playing a successful role in developing countries, for example post-war Korea and Japan. That it has been possible to put together a US$70 million convertible bond financing just recently for Lonrho shows enough investors reckon risk/reward favours the upside. I drew attention a year ago at about 10p a share and the price has bumped along in a sideways-volatile, 10-14p range, until October when they re-rated from 12p above 18p. It looks as if the profit turnaround got into the market before it was announced, as the shares barely changed in reaction to the 4 November news. An announcement on 8 October, as Lonrho commenced its bond offering, cited "an increase in demand from the US retail market for fish and other produce from Southern Africa" which had boosted Lonrho's agricultural division. Management was seeking "to take advantage of new opportunities to significantly enhance shareholder value...logistical, processing and delivery requirements..." It effectively signalled "Game on" to investors who understand African risks. Mind that the shares' rise has coincided also with investors' risk appetite becoming generally keener this autumn. Up until September, markets fretted over a double-dip recession but the mood has since improved and Lonrho been fortunate to release good news into it. This will always be a twitchy share. So watch in the near term for what is announced by way of acquisitions and development. With fresh money there should be another buying opportunity, especially when markets take a dive, which is starting to look due with plenty of financial risks at large. Conservative investors won't like Lonrho as it remains quite a speculation and will always be relatively high risk; but it may suit those looking for a more specific play on Africa and agriculture than the typical emerging markets fund (and its fees). For private investors, Lonrho's diversity can be seen as a virtue in this respect, spreading risk such that owning an individual share becomes palatable. While it is hard to set a specific share price target, hopefully this helps you appreciate why "new Lonrho" has economic justification and should have plenty of scope to build value. For more information see and there is an interview with Geoffrey White, Lonrho's chief executive on YouTube, which is taken from
skintvestor: From UK - Analyst today. Buy Lonrho (LONR) at 16.25p From The Small Cap Shares Team Lonrho (LONR) was originally tipped in last month's issue of Small Cap Shares. Since then, the share price has increased by an impressive 25%! But with strong recent trading and ambitious growth plans, the team continues to rate Lonrho a buy. In the latest issue of Small Cap Shares, out this Thursday, the team will reveal 3 brand new recommendations on small cap companies they believe have fantastic potential, as well as providing updates on previously tipped stocks and lots more. To see these brand new tips on the website on Thursday, and receive the latest issue of the newsletter by first class post shortly after - join Small Cap Shares now. Background Once described by former UK Prime Minister Ted Heath as the "unpleasant and unacceptable face of capitalism", Lonrho has had a chequered history. Having built up a conglomerate empire, mainly in Africa, the firm often hit the headlines for the wrong reasons in the 1970s and 80s. Well known in the UK for its ownership of the Observer newspaper and tussle with Mohammad Al Fayed over department store Harrods, today Lonrho is a completely different business. Following, the de-merger of the company's mining assets in 1998 (which now trade as FTSE 100 listed Lonmin) the firm, then known as Lonrho Africa, went on a disposal spree and by the end of 2005 it was left with only a stake in the Hotel Cardoso in Mozambique, an industrial property in South Africa and GBP20 million of cash. But under the stewardship of controversial entrepreneur David Lenigas the firm has re-established itself on the continent in the past five years. Lonrho's current strategy is focused on investing in and growing businesses within the core African economic drivers of mining, oil and agriculture. As it stands today, the business has operations in 17 countries, primarily in Sub-Saharan Africa, and trades through the five divisions of Agribusiness, Hotels, Transportation, Support Services and Infrastructure. The Business By revenues, Agribusiness is currently the largest of the five divisions, it contributing just over half of sales in the 12 months to September 2010. At the core of the business is food processor Rollex which sources, packs and delivers fresh fruit, vegetable, meat and fish produce from across Africa, and delivers to retail clients including the likes of Woolworths, Shoprite, Marks & Spencer and many others. Rollex operates from a 3 hectare site next to OR Tambo International Airport in Johannesburg, South Africa, which includes 4,600 square metres of chilled warehouse and cold room facilities. Also in Agribusiness, the LonAgro subsidiary owns John Deere, a supplier of agricultural equipment based in Angola and Trak-Auto, the existing holder of the John Deere dealership in Mozambique. The division is completed by the sustainable seafood producer and supplier, Oceanfresh Seafoods. In Hotels, Lonrho still has a 59% stake in the 4 star, 130 room Hotel Cardoso in Mozambique, as well as a contract for the management of the hotel. The firm also owns a 50% stake and a management contract in the 5 star Grand Karavia Hotel in the Democratic Republic of Congo. The hotel was opened in June this year after undergoing a $20 million refurbishment programme. Finally, Lonrho Hotels Management Services manages the Leopard Rock Hotel in Zimbabwe and is working on a development in Beira, the second largest city in Mozambique. The Transportation business owns a 49% stake in airline Fly540. Operating from hubs in Kenya, Angola and Ghana the airline connects the north of Africa to the south and the east to the west. Fly540 also provides international standard regional distribution for intercontinental carriers such as British Airways, Emirates and Virgin. Lonrho is looking to develop this business in order to take advantage of increased business travel and rising demand from the growing African middle classes. At the core of the Support Services business is Bytes & Pieces, Mozambique's largest commercial information technology provider. The business, which is 65% owned by Lonrho, supplies its services to a number of blue-chip clients including banks, businesses and government organisations. Also in support services, Complete Enterprise Solutions (CES) is trying to replicate the success of Bytes & Pieces but outside of Mozambique. CES currently operates in Zambia and South Africa and further office openings are planned. The division is complimented by Lonrho Water, which via the operations of Swissta Holdings has three water bottling plants in operation which provide bottled water to communities in Africa, as well as water delivery systems such as water treatment plants and desalination units. Finally, the core of the Infrastructure buiness is Luba Free Port, a logistics centre located in the Gulf of Guinea which mainly serves the burgeoning African oil and gas industries. Clients include the likes of ExxonMobil, Noble Energy and Baker Hughes, firms which usually sign long-term deals for use of the port facilities. The port is a joint venture between the Government of Equatorial Guinea, which has a 37% stake, and Lonrho which owns the remainder and operates the port. The second part of the infrastructure division is Kwikbuild, a business which manufacturers and supplies prefabricated buildings suitable for classrooms, medical clinics, accommodation units, low cost housing, workers camps and offices. Outside of the five core divisions, Lonrho owns a 24.61% stake in LonZim, a company which owns a portfolio of investments primarily in Zimbabwe, and a 15.06% holding in Lonrho Mining, which has a highly prospective diamond mining concession in Angola. Current Trading In a recent trading update, Lonrho revealed that trading for Q4 was up 13% on the same period last year at GBP33.6 million, bringing total revenue for the year to 30th September up to GBP107.7 million, which represents a 20% increase on the last financial year. While all business units contributed to this increase, it was the Hotels division which showed the largest growth, with turnover for the year up 71% on 2009 at GBP5.9 million, due in part to the opening of the Grand Karavia in June. Meanwhile, Agribusiness also showed significant progress, with Q4 turnover increasing by 28% to GBP17.7 million as its fish distributor, Oceanfresh, increased its supply to US retailer Costco following an 8 month trial period. EBITDA for Q4 of GBP5.1 million helped bring the figure for the full year up to GBP9.4 million, an increase of GBP7.2 million on 2009. Meanwhile, profit before tax for the 12 months to 30th September 2010 was GBP0.5 million, which is a significant improvement on the GBP4.5 million loss sustained in 2009. Lonrho also boosted its financial position recently by raising $70 million via the issue of new convertible bonds. The bonds are due by 2015, have an interest rate of 7% a year and are convertible at 15.59p - a 25% premium to the market price in the days before the bond issue was announced. The net proceeds will be used to repay certain borrowings, to fund general working capital and to accelerate growth across the operations. Opportunities and Risks Executive Chairman David Lenigas has told the financial press that he wants Lonhro to be making $1 billion of revenues within the next three years or so. We believe the company certainly seems to be in the right place at the right time to do this. A recent report from the International Monetary Fund entitled "Sub-Saharan Africa, Back to High Growth?" suggests that economic conditions within Sub-Saharan Africa are now improving following a dip seen during the global recession. The organisation expects output in the region to rise by 4.75% this year, up from 2% in 2009, rising to 5.75% in 2011. What's more, we believe that the significant investment made in the past five years has aligned Lonrho's assets to the underlying growth drivers of Sub-Saharan Africa. For example, the Agribusiness and Kwikbuild operations should benefit directly from expectations of further population growth in the coming years. The United Nations expects the population of Sub-Saharan Africa to rise from 863 million in 2010 to 1.75 billion by 2050 - these people will obviously need to be fed, housed and sheltered - boding well for Lonrho. Elsewhere in the business, the recent expansion of the African oil industry is likely to boost the infrastructure operations. Africa is estimated at holding around a quarter of the world's oil reserves and is an attractive area for countries such as the US, which is looking to reduce its reliance on the Middle East for energy. The support services business, especially Bytes & Pieces, should benefit from the growing economy and the airline and hotels should prosper from the general economic growth as well as an increase in the African middle classes. Evaluation With growth across all divisions, and particularly strong progress at Agribusiness and Hotels, Lonrho continues to perform well and is in a stronger financial position following its recent bond issue. Based on Panmure Gordon's estimates, the shares trade on a multiple of around 7.5 times next year's earnings. We believe that looks good value given the company's track record to date, strong financial position following the recent bond offering and the growth opportunities which it has on the continent. We understand that the firm has also started the process to move up to the Main Market of the London Stock Exchange. This, along with a rumoured listing in Hong Kong, should increase demand for the shares. As an interesting play on the fast growing emerging African markets, shares in Lonrho are a BUY.
boonboon: I've tried to make a breakdown of everything the company holds. Does anyone know if I'm missing something? Angola; Angola is currently the largest exporter of oil in Africa and is using its oil wealth to develop its infrastructure and to diversify the economy. Lonrho has various assets and developments in Angola. Lonrho has a 25.59% stake in Lonrho mining, which is developing a diamond mine in Angola. At the current share price this stake is worth around £0.7million in the current depressed markets and it has some substantial upside. Lonrho is developing a $9 million bottled water plant 35km from the Angolan capital of Luanda. Lonrho has a 55% stake and will invest $2million into the project as 40% of the funding will be in equity and 60% in debt. The plant will be capable of producing 4 million liters of water a month. Lonrho has a 51% stake in Enditrade Logistics Terminal. A bonded 'dry port' logistics centre in Luanda. The logistics centre is being developed to ease congestion at Luanda Seaport. Containers will be unloaded and shipped to the dry-port where customs clearance will occur. This operation has the potential to be highly successful as the some ships have to wait months for their cargo to be cleared and unloaded. The total development cost is $9million and after all loans have been paid back Lonrho is entitled to dividends of 40%. Lonrho has a 51% stake in Lonrho Aggregates Angola a company setup to develop a 75 hectare aggregate site to supply materials to the ongoing construction boom in Angola. The total project will take $5million to develop and will be funded by bank loans and shareholder loans. Lonrho Agriculture has signed a deal with the Angolan government to develop 25,000 hectares of agricultural projects in Angola. Lonrho Agriculture has signed an agreement to become the John Deere tractor and agricultural equipment distributor for Angola. They will run this in joint venture with Agromundo Assessoria Agricola Lda, a well established company in the Angolan agricultural sector. Lonrho will have a 51% stake in the joint venture. LonAgro has purchased a 20,000m2 site to be the initial John Deere branch in Catete, in the Bengo Province, 80km east of Luanda and plans to have this head office branch open and stocked by July 2009. At least two further branches are planned to be developed throughout the country in 2010 and 2011. Each branch will have full showroom, sales, administration, training and servicing facilities. The development cost will be $6million, the majority funded by bank loans, but Lonrho will invest $1.5million in equity. Lonrho is developing a Pan African airline called fly540 and recently it has received an AOC which will allow it to offer passenger services in the domestic Angolan market. It will initially base 2 aircraft in Angola. DRC Lonrho has won a contract to redevelop and manage the 'KARAVIA', a 250 room hotel in Lumbashi. A new company, Karavia 2008, was established to be owned as to 30% by the Government of the DRC, 35% by Lonrho and 35% by De Moerloose Group, a large Belgian group operating in the DRC in the automotive, distribution and airlines business. Karavia 2008 will hold a 25-year lease on the property for a peppercorn rent, renewable for a further period of 25 years. Karavia 2008 will invest up to US$ 20 million in the refurbishment project to bring the hotel back to an international five star standard. The funds will be raised as a combination of equity and debt finance. The Karavia hotel is currently the only potential large-scale accommodation facility in Lubumbashi, the burgeoning centre of the copper and cobalt industry in the DRC. The hotel, originally a Sheraton Hotel, has been derelict for over ten years and requires a complete refurbishment. Lonrho owns 51% of Lonrho Springs RDC Sprl which is developing a water bottling plant in Lumbashi. The total project will cost $5.3million to develop and Lonrho will inject $2million of this. The plant will produce 1.3million litres of water a month. Lonrho also own 21.4% of a water bottling plant in Kinshasa: The size of the existing plant is currently being doubled to meet demand. Equatorial Guinea; LOHNRO currently has one investment in Equatorial Guinea, which is a 63% stake in Luba Freeport on the island of Bioko, in the Gulf of Guinea. Luba Freeport acts as a logistics centre for the burgeoning oil and gas industries in the Gulf of Guinea and services major oil companies in the region. It provides a sheltered deep water environment in the bay of Luba on the southern side of Bioko Island. Luba Freeport is a one-stop shop facility - vessels come into the quay and receive their fuel, bulk chemicals, water and any other cargo without any need to change berths. The company paid $2million for its stake in the port, and has also invested $60 million to date developing the port. The port serves the growing oil industry in the Gulf of Guinea and as it's located on an island it provides some security from unrest that regularly occurs on the mainland. The Gulf of Guinea is now regarded as one of the world's top oil and gas exploration hotspots and the US has announced that they expect 25% of their oil imports to come from the region. The port therefore has the potential to be a significant infrastructure asset and should provide excellent returns in the years to come. Kenya; Lonrho has a 49% stake in Fly540 Kenya which is a regional air carrier flying to domestic and international destinations. According to the latest statements from Lonrho this airline is operating profitably. Malawi Lonrho is to develop an agri-processing and cold store facility and a 100 hectare agriculture project at Lilongwe. The agri-processing facility will be based at Kamuzu International Airport. Mozambique Lonrho own 59.04% of Hotel Cardoso which is located in Maputo. They also have the management contract for the hotel and it is also running profitably Lonrho own 65% of Bytes and Pieces a provider of IT solutions to corporate clients. Lonrho own 100% of a water bottling plant capable of producing 300,000 liters a month South Africa Lonrho Springs SA Pty Ltd 100% owned by the Lonrho has acquired the rights to the Aquamarine brand as well as the water source. It will invest $2million in a $5.3 million project (the rest of the funding coming from bank loans) to build a state of the art bottling plant capable of producing 800,000 litres per month. Lonrho owns 51% of the Rollex Group an agri-processing and Logistics Company. It bought its stake for $5million. Rollex operates from a three hectare site, strategically positioned with international airside access to OR Tambo Airport in Johannesburg, South Africa. The operations include 3000 sqm of cooled warehouse and cold room facilities for perishable produce and 1500 sqm for general storage warehousing and consolidation purposes. Rollex uses its own fleet of refrigerated motorised units to ensure express pull back and delivery from the cargo handling terminals of all the major airlines at OR Tambo, Johannesburg's international airport, including British Airways, Emirates, Virgin and South African Airways. As a fully bonded facility it provides for seamless and quick handling. The state of the art facility is operational 24 hours a day, 365 days a year and provides 38 blast chilling bays controlled via a sophisticated Danfoss computerised temperature management and logging system. Rollex develops and packs specialized combination and pre-prepared vegetable and fruit packs to specifications set by its clients. The site is approved by all the South African regulatory authorities. This Includes the Perishable Produce Export Control Board (PPECB) and National Department of Agriculture for Fruit, vegetables, and flowers. Rollex also operates a fish export division situated at Cape Town International Airport. Lonrho owns 100% of Cool Maintenance which was acquired for $3.1million. Cool Maintenance specialises in the manufacture and erection of cold storage units for the food processing, storage and other Industries. Lonrho own 55.6% of Kwikbuild it paid £2.1 for its stake. KwikBuild has subsidiary businesses in South Africa, Mozambique and Zambia to meet the growing demand for rapid build developments. Structures can be erected on any terrain by semi-skilled labour, using a dry building process, without the need for costly steel or wooden frames. The building materials are weatherproof, fire resistant, provide excellent insulation and are durable. KwikBuild has focussed on large scale public sector projects. In South Africa these include providing social housing to the Ministry of Housing, and accommodating 5,000 students across different schools for the Ministry of Education. Medical clinics and laboratories have been built for the Department of Health, and KwikBuild has supplied materials for the construction of worker camps for the oil and gas sector in Angola. Lonrho own 50% Complete Enterprise Solutions a provider of IT solutions to corporate clients and based in Johannesburg Tanzania Lonrho own 90% of Fly540 Tanzania which is currently awaiting receipt of its Air Operators Certificate in the mean time they are operating premium business charters. Uganda Lonrho own 90% of Fly540 Uganda, which is currently operating cargo flights and will soon commence passenger flights. Zambia Lonrho opened a branch of Complete Enterprise Solutions (see South Africa section) Zimbabwe For Zimbabwe Lonrho holds 24.25% of Lonzim plc an AIM listed company that was set up to make investments in Zimbabwe. The stake is currently valued at about £3million.
skintvestor: RNS Number:3657Z Lonrho PLC 29 June 2007 29 June 2007 LONRHO Plc ("Lonrho" or the "Company") Interim Results for the Six Months Ended 31 March 2007 Lonrho (AIM: LONR), the African conglomerate with a diverse portfolio of investments ranging from infrastructure, transportation, support services, and natural resources announces its interim results for the six months ended 31 March 2007. Operational Highlights Since the year end the Company has continued to implement the clear mandate that was agreed at the Extraordinary General Meeting on 24 February 2006. Lonrho is building a Group that operates throughout Africa focusing on the core business opportunities of infrastructure, transportation, support services and natural resources that offer significant potential for growth across the continent. * Transportation: * Five Forty Aviation Limited ("Fly540"): acquired 49% and Board control of Fly540, which has subsequently grown to become one of the largest low cost airlines in East Africa. The company operates French ATR 42-320 turbo-prop 42 seat passenger aircraft. Further regional expansion is planned with the recent addition of Dash 8-100 turbo-prop aircraft. * Norse Air Limited ("Norse Air"): acquired 43% and Board control of Norse Air, a charter and leasing business which operates contracts for Governments and businesses throughout Africa. * Lonrho Air (BVI) Limited: 100% owned by Lonrho, the company has agreed to acquire two French made ATR 42-320 aircraft which will be leased to Fly540. * Angolan Airline: Lonrho has signed an exclusive Memorandum of Understanding to develop a new airline in Angola for the passenger, freight, leasing and charter markets. * Infrastructure: * Luba Freeport Limited ("Luba Freeport"): acquired 63% of Luba Freeport in The Gulf of Guinea which is perfectly located to service the growing Gulf of Guinea oil and gas sector. The company is expanding the extension of the port's quay and is building a 60,000m2 new facility to accommodate ExxonMobil and other subcontractors and service companies arriving in or relocating to Luba. * Support Services: * Hotel Cardoso SARL ("Hotel Cardoso"): Lonrho owns 59% of Hotel Cardoso in Mozambique which posted its best trading for eight years. Lonrho has committed to upgrade and further develop the property this year and is reviewing a number of other potential hotel acquisitions in Mozambique and elsewhere in Africa. * Swissta Holding Limited ("Swissta Holdings"): acquired 100% of Swissta Holdings, a water technology company that builds and operates modular water bottling plants which will be rolled out across the continent. * Sociedade de Aguas de Mocambique, Lda ("Aguas de Mozambique"): agreed to aquire 34% of Aguas de Mozambique, the extractor, bottler and distributor of mineral water. * Lonrho Springs: this new division of Lonrho has been established to apply the Swissta model of water bottling across Africa. * Countermine Plc ("Countermine"): acquired 1.28% and entered into a joint venture with Countermine to evaluate landmine clearance opportunities in Sub-Saharan Africa. It is planned that the first site test of the Oracle 2 mine clearance machine will take place later this year. * Sociedade Comercial Bytes & Pieces, Limitada: agreed to acquire 65% of one of Mozambique's largest information technology solution providers which offers network solutions and maintenance support to busineses, NGO's and Government organizations. Lonrho plans to expand into other African countries. * Natural Resources: * Nare Diamonds Limited ("Nare Diamonds"): acquired 21.45% of Nare Diamonds which has a strong inferred resource at Schmidtsdrift in South Africa and cash positive operations. * Brinkley Mining Plc ("Brinkley Mining"): acquired 3.91% but despite the current strong market for uranium Lonrho does not believe that this minority investment fits strategically with its investment plans and as such reduced its investment from 10.04%. * Consolidated Africa Mining Plc: acquired 6.71% in this mining resource investment company with activities in the Cameroon. * SouthWest Energy (BVI) Limited: acquired 2.41% in this oil and gas exploration company with activities in Ethiopia. * The Company announced its intention to change its name to Lonrho Plc from Lonrho Africa Plc to capitalise on the character and strength of the Lonrho brand in Africa. Financial Review The financial results for the six months ended 31 March 2007 reflect the fact that the increase in acquisitions has led to an operating loss of #3.0m (2006: #0.9m). However, the Company has seen an increase in turnover from #0.6m as at 31 March 2006 to #10.4m for the six month period to 31 March 2007. The Company's share price has also performed positively with a rise of 51% from 1 October 2006 to date. In May 2007 the Company issued 51,449,381 ordinary shares of 1p each at a price of 32p per share, raising #16.46m. Currently, Lonrho has #16.7m cash at bank and in addition holds shares in Nare Diamonds and Brinkley Mining, which are publicly traded and can be realised at market value. David Lenigas, Executive Chairman and Chief Executive commented: "The implementation of the new strategy has allowed Lonrho to become strongly acquisitive with a number of key investments being made in the African infrastructure and transport sectors. We are building a portfolio of assets that when restructured and developed offer significant growth potential and synergy with positive exposure to a number of key African markets. We are well on our way to rebuilding Lonrho's presence in Africa, with a new vision and a new focus." "We are committed to improving the business climate of Africa and strongly believe that our current agenda puts us in an excellent position to contribute to African growth as one of the world's most promising emerging markets." "Our goals are two fold and interlinked: to create value for shareholders and to stimulate the growth of the African economy." Enquiries: Lonrho +44 (0) 20 7016 5105 David Lenigas, Chief Executive +44 (0) 7881 825 378 Emma Priestley, Executive Director +44 (0) 7867 785 177 Pelham PR Charles Vivian +44 (0) 20 7743 6672 +44 (0) 7977 297 903 James MacFarlane +44 (0) 20 7743 6375 +44 (0) 784 167 2831 Collins Stewart Limited +44 (0) 20 7523 8700 NomAd - Simon Atkinson +44 (0) 20 7523 8350 Broker - Paul Compton +44 (0) 20 7523 8426 Chairman's Statement Since the year end the Company has continued to implement the clear mandate that was agreed at the Extraordinary General Meeting on 24 February 2006. Lonrho is building a Group that operates throughout Africa focusing on the core business opportunities of infrastructure, transportation, support services and natural resources that offer significant potential for growth across the continent. The importance of infrastructure in Africa is vital to its future economic growth. For this reason Lonrho's focus is with investing in infrastructure related businesses throughout Africa. The underdeveloped nature of the continent's infrastructure presents Lonrho with a significant business opportunity across a range of sectors and geographical regions. Africa is a burgeoning society that will only become viable through economic growth. The basic infrastructure must be put in place to facilitate economic growth that will support trade via ports, transportation and support services. Through the development of these fundamentals Africa will emerge as a major participant in the global markets. During this period we have achieved major accomplishments by investing in African business within the core sectors. The Company has seen an increase in turnover from #0.6m as at 31 March 2006 to #10.4m for the six month period to 31 March 2007. The Company's share price has also performed positively with a rise of 51% from 1 October 2006 to date. FINANCIAL POSITION In May 2007 the Company issued 51,449,381 ordinary shares of 1p each at a price of 32p per share. At the date of this report the Company held #16.7m cash at bank. CHANGE OF NAME On the 10 May 2007, Lonrho Africa Plc formally changed its name to Lonrho Plc to capitalise on the character and strength of the Lonrho brand in Africa. MANAGEMENT In order to support this rapid progress, and ensure that the correct corporate structure and governance is in place, we have expanded the management capabilities of the Company, and have recruited a new Finance Director, Jean Ellis, and a new Chief Operating Officer, Geoffrey White. Both bring extensive experience of operating in the African marketplace. Jean Ellis is a Chartered Accountant and Chartered Tax Adviser, and holds an Insolvency Practioner's licence. Whilst undertaking the role of Finance Director, she will remain as a partner in the regional firm of Chartered Accountants, Duncan Sheard Glass, a role she has held since 2002. Prior to this she was Group Financial Controller and Tax Manager with the Company and holds a number of directorships for its subsidiary companies. Geoffrey White has held senior management roles with Thomas Tilling Plc, BTR Plc and Dee Corporation Plc. During the past four years he has worked for the private office of His Highness Sheikh Khalifa Al Thani, the Ex-Emir of Qatar, in London. He has worked with Hilton International, Ford Motors (PAG), Praton International GmbH, FFS Refiners (Pty) Ltd, Sengamines Sarl, Oryx Natural Resources, African Mining Investments Limited and Pegasus Energy Limited. Gerard Holden, who was the joint Chairman of the Company resigned in March 2007 to spend more time on his other business commitments. He remains available to the Company on specific projects as and when deemed appropriate. Donald Strang was appointed as a Non-Executive Director on 19 December 2006. He is a Chartered Accountant with over 15 years experience in financial management predominantly within the natural resources sector. He is currently an Executive Director of Brinkley Mining Plc. REVIEW OF OPERATIONS A review of the current business profile can be demonstrated in four key activity areas: TRANSPORTATION Five Forty Aviation Limited ("Fly540") (49% investment) Lonrho has, together with its partners in Nairobi, established the first low cost airline in East Africa, Fly540. This pioneering company has grown rapidly and is now the second largest passenger carrier in Kenya behind the national airline. Fly540 is providing domestic services throughout Kenya, which also offer practical feed and connectivity for intercontinental airlines flying into the Nairobi hub. Nairobi continues to build on its historic strength as Africa's most logical aviation interchange having an ideal geographic and regional location. Firm plans are in place for regional and pan African expansion with further aircraft under evaluation to meet Fly540's growth strategy which include up to four new regional destinations by Q4 2007. The present fleet consists of two French manufactured ATR 42-320 aircraft and two Dash 8-100 aircraft offering 46 and 37 seat capacities. Fly540 is 49% owned by Lonrho and 51% by the management of the company. Lonrho controls the board. Norse Air Limited ("Norse Air") (43% investment) Norse Air is a charter, leasing and maintenance company that operates from a base in South Africa. Lonrho owns a 43% stake in Norse Air and holds Board control. The company has grown significantly since becoming part of the Lonrho Group and provides charter and leasing services to a wide range of clients including the South African Government and AngloGold Ashanti, for whom Norse Air provides a regular contracted schedule service for transporting its staff and equipment to its international mine sites. Lonrho Air (BVI) Limited ("Lonrho Air") (100% investment) In June 2007 Lonrho Air agreed to acquire two French made ATR 42-320 aircraft and entered into a back-to back lease purchase agreement whereby the aircraft are leased on a dry lease basis to Fly540. Angolan Airline In June 2007 Lonrho signed an exclusive Memorandum of Understanding with one of the largest internal investment companies in Angola to develop a new airline in Angola for the passenger, freight, leasing and charter markets. Lonrho is constantly evaluating further opportunities in the transport business, including further aviation markets, shipping, road and rail opportunities that would expand or bring synergistic business value to the current portfolio. INFRASTRUCTURE Luba Freeport Limited ("Luba Freeport") (63% investment) The Gulf of Guinea has become a significant source of the world's oil supplies. The United States of America has announced that it expects to source 25% of its annual oil requirements from this region within the next five years due to the significantly lower political risk for the Gulf of Guinea when compared with the Middle East. Luba Freeport is owned 63% by Lonrho and 37% by the Government of Equatorial Guinea and is perfectly located to service the growing Gulf of Guinea oil and gas sector. Anchor tenants who are utilising the port for their operations include ExxonMobil, Schlumberger, Baker Hughes, MI Fluids, Nalco, Marathon, Noble Energy and Amerada Hess. ExxonMobil, already in production and producing 250,000 barrels of crude a day from the Gulf of Guinea, has a ten year contract at Luba Freeport and is expanding its facility to 60,000 square metres, which is due for completion in August this year. The Freeport business grows monthly as subcontractors and service companies arrive or relocate to Luba to support their largest clients. To meet the growing demand for ship movement and access at the port, two quay extensions are being implemented. The first, a US$10.38m contract, is being built by Danish marine specialists Pihl and will extend the current quay by a further 70 metres. This expansion has commenced and is on budget and scheduled to be completed by October 2007. The second phase of extension, a further 110 metres of quay, is planned to commence in November 2007. Lonrho is assessing various other infrastructure projects throughout Africa in the port and airport sectors. SUPPORT SERVICES Hotel Cardoso SARL ("Hotel Cardoso") (59% investment) The Hotel Cardoso has gone from strength to strength since it was decided to retain the property and management has been empowered to focus on improving and expanding the hotel. Hotel Cardoso has seen significant increases in occupancy levels and revenue per available room has risen by more than 50% over the last 18 months. The hotel is to undergo a US$1.5m refurbishment in the latter part of 2007 to modernise the rooms and the exterior of the building to position it as the destination hotel of choice in the Maputo market. Swissta Holdings Limited ("Swissta Holdings") (100% investment) In April 2007, Lonrho acquired 100% of the water technology company Swissta Holdings. This provided a building block of tried and tested modular technology for entering the African bottled water market. This technology and the modular concept facilitates the rapid growth of a water bottling network throughout Africa utilising the same technology and business model on a repeat basis from country to country. The company has a 100% owned water bottling and distribution operation in Mozambique and a 22% share of a plant in the Democratic Republic of the Congo. Sociedade de Aguas de Mocambique, Lda ("Aguas de Mozambique") In April 2007 Lonrho agreed to acquire a 34% interest in Aguas de Mozambique which is an extractor, bottler and distributor of mineral water, whose principal brand, Agua de Namaacha, currently has an overall share of approximately 30% in the Mozambique water market. Lonrho Springs A new division, Lonrho Springs, has been established to apply the Swissta model of water bottling plants across Africa. Countermine plc ("Countermine") (1.28% investment) Lonrho entered into a joint venture with Countermine to evaluate landmine clearance opportunities in sub-Saharan Africa. Land mines remain a severe problem in Africa, with an estimated 15,000 to 20,000 new casualties every year and an estimated 40,000,000 uncleared landmines. The Oracle 2 is the result of a seven year test and development process that has resulted in a state of the art landmine clearance machine. The machine facilitates the faster, safer and less expensive removal of all types of landmines. It is planned to establish a first site test in conjunction with the Government in Angola later in 2007. It is estimated that in Angola alone there are approximately 2,900 suspected landmine areas covering a total area of some 1,300 to 1,400 square kilometres. The presence of two or three landmines or even the suspicion of their presence can result in a large patch of land being avoided and left derelict. Sociedade Comercial Bytes & Pieces, Limitada ("Bytes & Pieces") In June 2007, Lonrho agreed to acquire 65% of one of Mozambique's largest commercial Information Technology Solution Providers, Bytes & Pieces, which provides turnkey network solutions and maintenance support to Mozambique businesses, NGO's and Government Organisations. Upon completion of the acquisition, Lonrho plans to expand into other countries in Africa using the Bytes & Pieces model with a distribution division for high quality networking products. NATURAL RESOURCES Nare Diamonds Limited ("Nare Diamonds") (21.45% investment) Nare Diamonds is an Australian listed company of which Lonrho currently owns 21.45% (19.05% at 31 March 2007) and is the largest single shareholder. Operationally the company has a strong inferred resource at Schmidtsdrift in South Africa, and the recent investment in new earth moving equipment is beginning to show in the results. The operations are now cash positive, and it is expected that this will develop further as better mining procedures and more earth moving equipment comes on line in the latter part of 2007. Inferred resources have been increased to 47.7 million tonnes and the mine is now producing an average grade of 0.51 carats per hundred tonnes. This is forecast to improve when the new final treatment and recovery plant is commissioned in August 2007. The sale of product has been taken out of a previous exclusive sale contract, and it is envisaged that this will result in a rise of up to 20% in revenue from tenders. Brinkley Mining Plc ("Brinkley Mining") (3.91% investment) Brinkley Mining was one of Lonrho's first acquisitions. The current market for uranium and uranium prospecting companies remains strong, however, Lonrho has developed its own market strategies moving forward, and does not believe a minority investment in companies such as Brinkley is strategically fitting with Lonrho's investment plans. The stake in Brinkley has been reduced from 10.04% to 3.91%. Consolidated Africa Mining Plc ("Consolidated Africa Mining") (6.71% investment) During the period the Group invested #0.4m in Consolidated Africa Mining, a mining resource investment company with activities in Cameroon. SouthWest Energy (BVI) Limited ("SouthWest Energy") (2.41% investment) Since the period end the Group invested US$1.0m in SouthWest Energy, an oil and gas exploration company with activities in Ethiopia. David Lenigas Executive Chairman & Chief Executive 29 June 2007 Consolidated profit and loss account
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