29th Jun 2007 16:15
Lonrho PLC29 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 ofinvestments ranging from infrastructure, transportation, support services, andnatural resources announces its interim results for the six months ended 31March 2007. Operational Highlights Since the year end the Company has continued to implement the clear mandate thatwas agreed at the Extraordinary General Meeting on 24 February 2006. Lonrho isbuilding a Group that operates throughout Africa focusing on the core businessopportunities of infrastructure, transportation, support services and naturalresources 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 factthat 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 at31 March 2006 to £10.4m for the six month period to 31 March 2007. TheCompany's share price has also performed positively with a rise of 51% from 1October 2006 to date. In May 2007 the Company issued 51,449,381 ordinary shares of 1p each at a priceof 32p per share, raising £16.46m. Currently, Lonrho has £16.7m cash at bank andin addition holds shares in Nare Diamonds and Brinkley Mining, which arepublicly 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 stronglyacquisitive with a number of key investments being made in the Africaninfrastructure and transport sectors. We are building a portfolio of assets thatwhen restructured and developed offer significant growth potential and synergywith positive exposure to a number of key African markets. We are well on ourway to rebuilding Lonrho's presence in Africa, with a new vision and a newfocus." "We are committed to improving the business climate of Africa and stronglybelieve that our current agenda puts us in an excellent position to contributeto 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 tostimulate the growth of the African economy." Enquiries: Lonrho +44 (0) 20 7016 5105David Lenigas, Chief Executive +44 (0) 7881 825 378Emma Priestley, Executive Director +44 (0) 7867 785 177 Pelham PRCharles Vivian +44 (0) 20 7743 6672 +44 (0) 7977 297 903James MacFarlane +44 (0) 20 7743 6375 +44 (0) 784 167 2831Collins Stewart Limited +44 (0) 20 7523 8700NomAd - Simon Atkinson +44 (0) 20 7523 8350Broker - Paul Compton +44 (0) 20 7523 8426 Chairman's Statement Since the year end the Company has continued to implement the clear mandate thatwas agreed at the Extraordinary General Meeting on 24 February 2006. Lonrho isbuilding a Group that operates throughout Africa focusing on the core businessopportunities of infrastructure, transportation, support services and naturalresources that offer significant potential for growth across the continent. The importance of infrastructure in Africa is vital to its future economicgrowth. For this reason Lonrho's focus is with investing in infrastructurerelated businesses throughout Africa. The underdeveloped nature of thecontinent's infrastructure presents Lonrho with a significant businessopportunity across a range of sectors and geographical regions. Africa is aburgeoning society that will only become viable through economic growth. Thebasic infrastructure must be put in place to facilitate economic growth thatwill support trade via ports, transportation and support services. Through thedevelopment of these fundamentals Africa will emerge as a major participant inthe global markets. During this period we have achieved major accomplishments by investing inAfrican business within the core sectors. The Company has seen an increase inturnover from £0.6m as at 31 March 2006 to £10.4m for the six month period to 31March 2007. The Company's share price has also performed positively with a riseof 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 priceof 32p per share. At the date of this report the Company held £16.7m cash atbank. CHANGE OF NAME On the 10 May 2007, Lonrho Africa Plc formally changed its name to Lonrho Plc tocapitalise on the character and strength of the Lonrho brand in Africa. MANAGEMENT In order to support this rapid progress, and ensure that the correct corporatestructure and governance is in place, we have expanded the managementcapabilities of the Company, and have recruited a new Finance Director, JeanEllis, and a new Chief Operating Officer, Geoffrey White. Both bring extensiveexperience of operating in the African marketplace. Jean Ellis is a Chartered Accountant and Chartered Tax Adviser, and holds anInsolvency Practioner's licence. Whilst undertaking the role of FinanceDirector, she will remain as a partner in the regional firm of CharteredAccountants, Duncan Sheard Glass, a role she has held since 2002. Prior to thisshe was Group Financial Controller and Tax Manager with the Company and holds anumber of directorships for its subsidiary companies. Geoffrey White has held senior management roles with Thomas Tilling Plc, BTR Plcand Dee Corporation Plc. During the past four years he has worked for theprivate office of His Highness Sheikh Khalifa Al Thani, the Ex-Emir of Qatar, inLondon. He has worked with Hilton International, Ford Motors (PAG), PratonInternational GmbH, FFS Refiners (Pty) Ltd, Sengamines Sarl, Oryx NaturalResources, African Mining Investments Limited and Pegasus Energy Limited. Gerard Holden, who was the joint Chairman of the Company resigned in March 2007to spend more time on his other business commitments. He remains available tothe Company on specific projects as and when deemed appropriate. Donald Strang was appointed as a Non-Executive Director on 19 December 2006. Heis a Chartered Accountant with over 15 years experience in financial managementpredominantly within the natural resources sector. He is currently an ExecutiveDirector of Brinkley Mining Plc. REVIEW OF OPERATIONS A review of the current business profile can be demonstrated in four keyactivity areas: TRANSPORTATION Five Forty Aviation Limited ("Fly540") (49% investment) Lonrho has, together with its partners in Nairobi, established the first lowcost airline in East Africa, Fly540. This pioneering company has grown rapidlyand is now the second largest passenger carrier in Kenya behind the nationalairline. Fly540 is providing domestic services throughout Kenya, which alsooffer practical feed and connectivity for intercontinental airlines flying intothe Nairobi hub. Nairobi continues to build on its historic strength as Africa'smost logical aviation interchange having an ideal geographic and regionallocation. Firm plans are in place for regional and pan African expansion with furtheraircraft under evaluation to meet Fly540's growth strategy which include up tofour new regional destinations by Q4 2007. The present fleet consists of twoFrench manufactured ATR 42-320 aircraft and two Dash 8-100 aircraft offering 46and 37 seat capacities. Fly540 is 49% owned by Lonrho and 51% by the management of the company. Lonrhocontrols the board. Norse Air Limited ("Norse Air") (43% investment) Norse Air is a charter, leasing and maintenance company that operates from abase in South Africa. Lonrho owns a 43% stake in Norse Air and holds Boardcontrol. The company has grown significantly since becoming part of the LonrhoGroup and provides charter and leasing services to a wide range of clientsincluding the South African Government and AngloGold Ashanti, for whom Norse Airprovides a regular contracted schedule service for transporting its staff andequipment 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 aircraftand entered into a back-to back lease purchase agreement whereby the aircraftare leased on a dry lease basis to Fly540. Angolan Airline In June 2007 Lonrho signed an exclusive Memorandum of Understanding with one ofthe largest internal investment companies in Angola to develop a new airline inAngola 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 thatwould 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 itsannual oil requirements from this region within the next five years due to thesignificantly lower political risk for the Gulf of Guinea when compared with theMiddle East. Luba Freeport is owned 63% by Lonrho and 37% by the Government of EquatorialGuinea and is perfectly located to service the growing Gulf of Guinea oil andgas sector. Anchor tenants who are utilising the port for their operationsinclude ExxonMobil, Schlumberger, Baker Hughes, MI Fluids, Nalco, Marathon,Noble Energy and Amerada Hess. ExxonMobil, already in production and producing250,000 barrels of crude a day from the Gulf of Guinea, has a ten year contractat Luba Freeport and is expanding its facility to 60,000 square metres, which isdue for completion in August this year. The Freeport business grows monthly assubcontractors and service companies arrive or relocate to Luba to support theirlargest clients. To meet the growing demand for ship movement and access at the port, two quayextensions are being implemented. The first, a US$10.38m contract, is beingbuilt by Danish marine specialists Pihl and will extend the current quay by afurther 70 metres. This expansion has commenced and is on budget and scheduledto be completed by October 2007. The second phase of extension, a further 110metres of quay, is planned to commence in November 2007. Lonrho is assessing various other infrastructure projects throughout Africa inthe 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 toretain the property and management has been empowered to focus on improving andexpanding the hotel. Hotel Cardoso has seen significant increases in occupancylevels and revenue per available room has risen by more than 50% over the last18 months. The hotel is to undergo a US$1.5m refurbishment in the latter part of 2007 tomodernise the rooms and the exterior of the building to position it as thedestination 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 SwisstaHoldings. This provided a building block of tried and tested modular technologyfor entering the African bottled water market. This technology and the modularconcept facilitates the rapid growth of a water bottling network throughoutAfrica utilising the same technology and business model on a repeat basis fromcountry to country. The company has a 100% owned water bottling and distributionoperation in Mozambique and a 22% share of a plant in the Democratic Republic ofthe Congo. Sociedade de Aguas de Mocambique, Lda ("Aguas de Mozambique") In April 2007 Lonrho agreed to acquire a 34% interest in Aguas de Mozambiquewhich is an extractor, bottler and distributor of mineral water, whose principalbrand, Agua de Namaacha, currently has an overall share of approximately 30% inthe Mozambique water market. Lonrho Springs A new division, Lonrho Springs, has been established to apply the Swissta modelof water bottling plants across Africa. Countermine plc ("Countermine") (1.28% investment) Lonrho entered into a joint venture with Countermine to evaluate landmineclearance opportunities in sub-Saharan Africa. Land mines remain a severeproblem in Africa, with an estimated 15,000 to 20,000 new casualties every yearand an estimated 40,000,000 uncleared landmines. The Oracle 2 is the result of a seven year test and development process that hasresulted in a state of the art landmine clearance machine. The machinefacilitates the faster, safer and less expensive removal of all types oflandmines. It is planned to establish a first site test in conjunction with theGovernment in Angola later in 2007. It is estimated that in Angola alone there are approximately 2,900 suspectedlandmine 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 presencecan 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 largestcommercial Information Technology Solution Providers, Bytes & Pieces, whichprovides turnkey network solutions and maintenance support to Mozambiquebusinesses, NGO's and Government Organisations. Upon completion of the acquisition, Lonrho plans to expand into other countriesin Africa using the Bytes & Pieces model with a distribution division for highquality networking products. NATURAL RESOURCES Nare Diamonds Limited ("Nare Diamonds") (21.45% investment) Nare Diamonds is an Australian listed company of which Lonrho currently owns21.45% (19.05% at 31 March 2007) and is the largest single shareholder.Operationally the company has a strong inferred resource at Schmidtsdrift inSouth Africa, and the recent investment in new earth moving equipment isbeginning to show in the results. The operations are now cash positive, and itis expected that this will develop further as better mining procedures and moreearth moving equipment comes on line in the latter part of 2007. Inferredresources have been increased to 47.7 million tonnes and the mine is nowproducing an average grade of 0.51 carats per hundred tonnes. This is forecastto improve when the new final treatment and recovery plant is commissioned inAugust 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 fromtenders. Brinkley Mining Plc ("Brinkley Mining") (3.91% investment) Brinkley Mining was one of Lonrho's first acquisitions. The current market foruranium and uranium prospecting companies remains strong, however, Lonrho hasdeveloped its own market strategies moving forward, and does not believe aminority investment in companies such as Brinkley is strategically fitting withLonrho's investment plans. The stake in Brinkley has been reduced from 10.04% to3.91%. Consolidated Africa Mining Plc ("Consolidated Africa Mining") (6.71%investment) During the period the Group invested £0.4m in Consolidated Africa Mining, amining 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 andgas exploration company with activities in Ethiopia. David Lenigas Executive Chairman & Chief Executive 29 June 2007 Consolidated profit and loss account 6 months 6 months 6 months 6 months 12 months to 31.3.07 to 31.3.07 to 31.3.07 to 31.3.06 to 30.9.06 Continuing operations Acquisitions Total Total Total As restated As restated Note £m £m £m £m £m Turnover 3.7 6.7 10.4 0.6 3.4 Net operating costs (6.2) (7.2) (13.4) (0.9) (4.3)Charge in respect of share options - - - (0.6) (0.8)issued(See note below) Operating loss (2.5) (0.5) (3.0) (0.9) (1.7) Non-operating exceptional items 2 - - 0.4Interest payable (0.5) - (0.2)Interest receivable 0.2 0.4 0.7 Loss on ordinary activitiesbefore taxation (3.3) (0.5) (0.8)Taxation - - - Loss on ordinary activitiesafter taxation (3.3) (0.5) (0.8)Minority interests 0.7 - (0.1) Loss for the period (2.6) (0.5) (0.9) Loss per share (1.2) p (0.3) p (0.4) p Loss per share before exceptional (1.2) p (0.3) p (0.6) pitems Earnings per share Loss per share of 1.2p (2006 as restated - loss 0.3p) has been calculated usingthe loss after taxation and minority interest of £2.6m (2006 as restated - loss£0.5m) applied to 224,229,090 shares (2006: 157,572,088 shares) Loss per share excluding exceptional items of 1.2p (2006 as restated - loss0.3p) has been calculated on the loss after taxation and minority interest butbefore exceptional items applied to 224,229,090 shares (2006: 157,572,088shares) There is no dilution per share in respect of the current year or preceding yearas the Group has made a loss. Prior year adjustment As required under current UK accounting standards, the Group has adopted FRS 20'Share-based Payment'. The adoption of this standard represents a change inaccounting policy and the comparative figures have been restated accordingly.The adjustments to previous periods have resulted in an additional charge to theprofit and loss account of £0.5m (previously £0.1m) in respect of share optionsissued in the six months to 31 March 2006 and a further £0.2m in respect ofshare options issued in the six months to 30 September 2006. A separate reserve('Other reserve') has been created in respect of this charge in the balancesheet. There has been no change to the net asset value of the Group in respectof this adjustment. Group balance sheet 31 March 31 March 30 September 2007 2006 2006 As restated As restated £m £m £m Fixed assetsIntangible - goodwill 6.0 - 3.3Tangible 34.7 2.6 19.8 40.7 2.6 23.1Current assetsStocks 0.8 0.3 0.2Debtors Amounts falling due within one year 5.5 1.2 2.3Investments 6.2 - 7.1Cash at bank 8.4 20.9 20.7 20.9 22.4 30.3 Creditors: amounts falling due within one year (16.4) (0.8) (13.4) Net current assets 4.5 21.6 16.9 Total assets less current liabilities 45.2 24.2 40.0 Creditors:amounts falling due after one year (6.7) - -Provisions for liabilities and charges 0.2 (2.2) - Net assets 38.7 22.0 40.0 Capital and reservesCalled up share capital 2.2 1.6 2.2Share premium 17.4 - 17.4Merger reserve - 96.1 -Revaluation reserve 1.6 0.9 1.6Other reserve (see note below) 0.8 0.6 0.8Profit and loss account 14.9 (78.3) 17.5 Shareholders' funds 36.9 20.9 39.5Minority interests 1.8 1.1 0.5 38.7 22.0 40.0 Prior year adjustment As required under current UK accounting standards, the Group has adopted FRS 20'Share-based Payment'. The adoption of this standard represents a change inaccounting policy and the comparative figures have been restated accordingly.The adjustments to previous periods have resulted in an additional charge to theprofit and loss account of £0.5m (previously £0.1m) in respect of share optionsissued in the six months to 31 March 2006 and a further £0.2m in respect ofshare options issued in the six months to 30 September 2006. A separate reserve('Other reserve') has been created in respect of this charge in the balancesheet. There has been no change to the net asset value of the Group in respectof this adjustment. Consolidated cash flow statement 6 months 6 months 12 months to 31.3.07 to 31.3.06 to 30.9.06 Note £m £m £m £m £m £m Net cash flow from operating activities- continuing operations (0.6) 0.2 (0.5)- acquisitions (0.3) - 0.5 1 (0.9) 0.2 - Return on investments and servicing of finance- interest received 0.2 0.4 0.7- interest paid (0.3) - - Net cash (outflow)/inflow before investing (1.0) 0.6 0.7activities Purchasing of tangible fixed assets (9.5) - (1.8)Purchase of investments (2.6) - (7.1)Sale of investments 3.5 - -Loan advance received 1.9 - -Loan repayment (0.6) - (0.2)Net cost of acquisition of subsidiaries (3.9) - (1.7)Loan paid on acquisition of subsidiary - - (6.1)Bank overdraft acquired with subsidiary (0.1) - (0.1)Net costs from closure/disposal of subsidiaries - - (1.8)Net proceeds from sale of properties - - 0.4Share issue - - 18.0 (Decrease)/Increase in cash (12.3) 0.6 0.3 Movement in net cashfor the six months to 31 March 2007 1 October Net cash 31 March 2006 flows 2007 £m £m £m Cash 20.7 (12.3) 8.4 Statement of total recognised gains and losses 6 months 6 months 12 months to 31.3.07 to 31.3.06 to 30.9.06 As restated As restated £m £m £m Loss for the period (2.6) (0.5) (0.9)Increase arising on revaluation of assets - 0.1 0.9Exchange adjustments - (0.1) (0.1)Total recognised gains and losses in the (2.6) (0.5) (0.1)period Reconciliation of movements in shareholders' funds 6 months 6 months 12 months to 31.3.07 to 31.3.06 to 30.9.06 As restated As restated £m £m £mRecognised gains and losses relating tothe period (2.6) (0.5) (0.1)Shares issued in the period - - 18.0Credit in respect of share options - 0.6 0.8Net (decrease)/increase in shareholders' (2.6) 0.1 18.7fundsAt beginning of period 39.5 20.8 20.8At end of period 36.9 20.9 39.5 Historical cost profits and losses 6 months 6 months 12 months to 31.3.07 to 31.3.06 to 30.9.06 As restated As restated £m £m £mHistorical cost loss before taxationReported loss before taxation (3.3) (0.5) (0.8) Historical cost loss after taxation and (2.6) (0.5) (0.9)minority interest Basis of preparation of the interim financial information With the exception of the adoption of FRS 20 'Share-based Payment' which isdiscussed in detail below, the interim financial information has been preparedon the same basis and using the same accounting policies as were applied indrawing up the statutory accounts for the year ended 30 September 2006. Thefigures for the six months to 31st March 2007 and 31st March 2006 are unaudited.The comparative figures for the financial year ended 30th September 2006 are notthe Group's statutory accounts for that year. Those accounts have been reportedon by the Group's auditors and delivered to the registrar of companies. Thereport of the auditors was (i) unqualified, (ii) did not include a reference toany matters to which the auditors drew attention by way of emphasis withoutqualifying their report and (iii) did not contain a statement under section 237(2) or (3) of the Companies Act 1985. Prior year adjustment As required under current UK accounting standards, the Group has adopted FRS 20'Share-based Payment'. The adoption of this standard represents a change inaccounting policy and the comparative figures have been restated accordingly.The adjustments to previous periods have resulted in an additional charge to theprofit and loss account of £0.5m (previously £0.1m) in respect of share optionsissued in the six months to 31 March 2006 and a further £0.2m in respect ofshare options issued in the six months to 30 September 2006. A separate reserve('Other reserve') has been created in respect of this charge in the balancesheet. There has been no change to the net asset value of the Group in respectof this adjustment. Notes to the half year accounts 1. Consolidated cash flow statement 6 months 6 months 6 months 6 months 12 months to 31.3.07 to 31.3.07 to 31.3.07 to 31.3.06 to 30.9.06 Continuing Operations Acquisitions Total Total Total As As restated restatedNet cash flow fromoperating activities Note £m £m £m £m £m Operating loss for the period (2.5) (0.5) (3.0) (0.9) (1.7)Depreciation charge 0.6 0.1 0.7 0.1 0.3Amortisation 0.1 - 0.1 - 0.1Charge in respect of share options - - - 0.6 0.8grantedIncrease in stocks - (0.3) (0.3) - -(Increase)/decrease in debtors (0.1) (2.3) (2.4) 0.4 0.2Increase in creditors 1.3 2.7 4.0 - 0.3Net cash (outflow)/inflow fromoperating activities (0.6) (0.3) (0.9) 0.2 - 6 months 6 months 12 months to 31.3.07 to 31.3.06 to 30.9.06Reconciliation of net cash flow to movement in net borrowings £m £m £m (Decrease)/increase in cash in the period (12.3) 0.6 0.3Loan acquired on acquisition of subsidiaries (4.7) - (4.2)Loan advance received in period (1.9) - -Loan repayments 0.6 - 0.2Other non cash 0.1 - (0.2)Movement in net cash (18.2) 0.6 (3.9)Balance at beginning of period 16.4 20.3 20.3Net (debt)/cash (1.8) 20.9 16.4 2. Non-operating exceptionals 6 months 6 months 12 months to 31.3.07 to 31.3.06 to 30.9.06 Total Total Total £m £m £m Profit on disposal of properties - - 0.4 Total - - 0.4 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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