LONDON - Lonrho reports 37 percent growth in revenue in Q2 and profit improvement of 4.2m at the half year. (Pictured: The Rt. Hon. Sir Richard Needham joins Lonrho)
The company this week announced its un-audited results for the second quarter to March 31, 2011 and said it was delighted that it had been admitted to the Main Market of the London Stock Exchange as a Premium Listing with effect from April 26, 2011. The Directors believe that a listing of the Company’s ordinary shares on the Official List is the most appropriate platform for the continued growth of the Company. Specifically, the Company’s Board anticipates that trading on the London Stock Exchange’s Main Market will raise the Company’s profile and provide the ability for a broader range of institutional and other investors from around the world to have the ability to participate in the Company.
On admission to the Main Market, the Rt. Hon Sir Richard Needham joined the Board as an independent Non-Executive Director. Sir Richard has had a distinguished career in Parliament culminating in his time as Britain’s longest serving Minister in Northern Ireland from 1985 – 1992 and as Minister of Trade from 1992 – 1995. Sir Richard left politics in 1997 and has since focused on the private sector, and has been a director of GEC Plc, Meggitt Plc, and currently is the Vice Chairman of NEC Europe Ltd. He has been on the Board of Dyson Ltd for over 15 years, and is currently the Senior Independent Director. He has been Non-Executive Chairman of Avon Rubber Plc since January 2007.
During the quarter the Group also announced the completion of the purchase of the AFEX group of companies. AFEX’s main focus of operations is in supplying services and secure accommodation in Juba, Southern Sudan. This infrastructure is in great demand from corporate clients, NGO’s and Government Aid Agencies working in Southern Sudan. Juba is forecast to be one of the fastest growing cities globally following the referendum establishing Southern Sudan as an independent country. Lonrho has purchased 100 percent of AFEX for an initial cash consideration of US$3 million and an EBIT related, capped earn-out payment. The existing management of AFEX will remain in place to develop and grow the company during the transitional period.
Financial highlights for the second quarter include:
Group turnover from continuing operations in the quarter has increased 37% ahead of the same quarter in the prior year to reach 33.5m. For the half year the turnover of 61.1m is 29% ahead of the first half of FY10.
In the second quarter of 2011 the Group has achieved EBITDA of 1.9m, a 2.7m improvement on the second quarter of 2010. The six months to March have seen EBITDA rise to 3.6m, 6.1m ahead of the same point in the prior year.
In the first half, the loss before tax was 2.9m. When compared to the prior year, and after excluding an exchange gain of 5.7m in that year (current year nil), this represents an underlying improvement of 4.2m.
Net assets at March 31, 2011 stood at 123.7m, compared with 124.5m as at 31 December 2010.
Cash balances in the Group at March 31, 2011 were 17.8m.
Post published in: Manufacturing