Monday, 27 July 2009

Lonrho reports continued strong growth across all businesses in third quarter

Pan-African investment group Lonrho PLC (AIM: LONR) said the the third quarter of its 2008/09 financial year has seen continued growth in its core businesses despite depressed global markets, with turnover from continuing operations up 16 percent on a like-for-like basis.

Turnover in the quarter to end-June from continuing operations came in at £18.5 million, the company said in a trading statement, noting that the period is traditionally the slowest in trading terms due to seasonal effects.

Year to date turnover for the first nine months was £60.0 million, up 44 percent on a like-for-like basis.

Pretax loss for the first nine months on a reported basis narrowed to £3.9 million compared to a loss of £15.9 million in the previous year. EBITDA in the third quarter was a loss of £2.4 million, compared to a loss of £8.8 million a year earlier.

Each of Lonrho’s core businesses continued to perform to expectations during the third quarter. The impact of the global recession on the African continent is less severe and the majority of economic forecasts expect sub Saharan growth in GDP to continue in 2009 albeit at a slower rate, it said.

The fourth quarter is set to be positive for the group with Fly540 Angola commencing flight operations, Fly540 Ghana's establishment, agriculture unit Rollex's continued expansion and the addition of major new clients to Luba Freeport. However trading conditions remain challenging as a result of the global economic climate and fluctuations in the currency markets.

Executive chairman David Lenigas commented: “Our investment philosophy of five strategic industries operating in seventeen countries is a sound approach to the emerging African market. We remain extremely positive about Lonrho's prospects in our chosen countries of operation and specific market sectors across Africa.”

www.proactiveinvestors.co.uk

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