27th Jun 2008 07:00
27 June 2008
Lonrho Plc
("Lonrho" or the "Company")
Interim results for the 6 months ended 31 March 2008
Lonrho Plc (AIM: LONR), the conglomerate with a structured portfolio of African investments, announces its Interim Results for the sixth months ended 31 March 2008.
Lonrho remains focused on investing in and developing opportunities across the continent, where it operates five strategic divisions in fourteen countries.
Financial Highlights:
The results for the six months to 31 March 2008 reflect that Lonrho continues to invest in and grow businesses across Africa.
For the six months to 31 March 2008:
Turnover has increased to £17.8m (2007: £4.6m).
A loss of £4.0m (2007: £3.3m) which is as expected given the ongoing development of the Group's investments. - Primarily due to a loss of £6.1m in SAILS which reflects the substantial costs of developing new routes in the
shipping industry. These reflect one off deployment and establishment costs for four new ships. In addition, although
Fly540 Kenya was profitable, costs of £1.7m on the ongoing roll out of Fly540 Africa in Uganda, Tanzania,
Angola and Ghana have been incurred.
Lonrho received shares in LonZim Plc with a value of £7.3m in respect of a non-compete agreement.
Cash held in the United Kingdom at 31 March 2008 was £18.3m.
These are the first results prepared by the Company in accordance with International Financial Reporting Standards. The comparative figures have been restated accordingly. In addition, the figures for 31 March 2007 have been restated following the reclassification of Norse Air Limited as an associate as disclosed in the Annual Report and Accounts for the year ended 30 September 2007.
Operational Highlights:
Ports and Infrastructure:
Luba Freeport - Development of a further 83m of quay is due for completion in September 2008
KwikBuild - Acquisition of KwikBuild delivering prefabricated building solutions across Africa
Transportation:
Fly540 - Now operating in six countries in Africa
SAILS - Increased SAILS fleet from two to six vessels, introduced 1,000 'reefer' chilled containers and increased stake to
67%
Support Services:
Lonrho Springs - Constructing new water bottling plants in Angola, DRC and South Africa
CES - Established new operations in South Africa to provide turnkey network solutions, hardware and maintenance
support across the African marketplace
Hotels - 23% increase in revenue at Hotel Cardoso - Build Operate Transfer contract to redevelop the Karavia hotel in Lubumbashi in the DRC
Natural Resources:
Completed airborne magnetic and radiometric survey on the Lulo concession in Angola with exceptional results
Zimbabwe:
Listed LonZim Plc on AIM raising £29.0m, Lonrho receiving a 20% free carried interest
Geoffrey White, Lonrho CEO commented:
"During the period, we have continued to build a strong foundation for the business through strategic investments. Our investments have been selected on the basis of significant potential for growth both locally and across the African continent.
"The future of Lonrho lies in expanding existing businesses across the continent. Over the next year we will focus on strengthening synergies between our group of companies and divisions to assist in this process. We remain extremely positive about Lonrho's prospects in Africa."
LONRHO ENQUIRIES
|
Lonrho Plc |
+44 (0)20 7016 5105 |
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David Lenigas, Executive Chairman |
+44 (0)7881 825 378 |
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Geoffrey White, Chief Executive Officer |
+44 (0)7717 307 308 |
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Emma de Borchgrave, Executive Director |
+44 (0)7867 785 177 |
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Pelham PR |
|
|
Charles Vivian |
+44 (0) 20 7743 6672 |
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+44 (0) 7977 297903 |
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James MacFarlane |
+44 (0) 20 7743 6375 |
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+44 (0) 7841 672831 |
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Collins Stewart Europe : NOMAD to Lonrho |
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Hugh Field |
+44 (0) 20 7523 8350 |
Chief Executive's Statement
During the six month period to the end of March 2008 Lonrho has continued to implement its business strategy across Africa. The Company remains focused on investing in and developing opportunities across the continent, where it operates five strategic divisions in fourteen countries. This diversity seeks to mitigate risk geographically, politically and across sectors, whilst bringing commercial benefits to each of Lonrho's divisions.
The Lonrho corporate objective is to establish sound businesses, either through investment in new ventures or acquisitions, and then grow each across the continent. The majority of the strategic investments made to date are now beginning to demonstrate their potential.
Lonrho's core market sectors remain those fundamental to supporting economic growth in Africa, and revolve around providing the services and industry needed for economic development.
Africa has become one of the World's new emerging market economies, and the opportunities for economic development of the Continent are tangible. The driving force behind the substantial growth in GDP in sub-Saharan Africa is largely due to the burgeoning natural resources sector. This has led the way for developments and growth in other sectors and is stimulating the foreign direct investment needed to encourage, develop and drive the economy as a whole.
The Group has seen an increase in turnover from £4.6m for the six months period to 31 March 2007 to £17.8m for the six months period to 31 March 2008 (the March 2007 figures having been restated following the reclassification of Norse Air Limited as an associate as disclosed in the Annual Report and Accounts for the year ended 30 September 2007).
The loss for the period of £4.0m (£3.3m for the period to 31 March 2007, the figures having been restated following the reclassification of Norse Air Limited as an associate as disclosed in the Annual Report and Accounts for the year ended 30 September 2007) reflects the ongoing development phase of the Group's investments.
During the period SAILS incurred a loss of £6.1m on turnover of £6.7m which reflects the substantial costs of developing new routes in the shipping industry. These reflect one off deployment and establishment costs for four new ships. In addition, although Fly540 Kenya was profitable, costs of £1.7m on the ongoing roll out of Fly540 Africa in Uganda, Tanzania, Angola and Ghana have been incurred.
The Group received shares with a value of £7.3m in LonZim Plc during the period to reflect the non-compete agreement which Lonrho Plc has entered into. This is shown as a 'Gain on sale of intangible fixed asset' in the Consolidated Interim Income Statement.
Cash held in the United Kingdom at 31 March 2008 was £18.3m.
The Group continues in an investment and growth phase. During the period, Lonrho raised £40.85m (net of expenses) from institutions to continue the development of the business.
This is the first report prepared by the Group in accordance with International Financial Reporting Standards ("IFRS") which are required for all AIM listed companies for accounting periods commencing on or after 1 January 2007. The comparative figures have been restated accordingly. An IFRS Restatement Report, which explains the effects on the financial statements of the adoption of IFRS, can be found on the Company's website at www.lonrho.com.
There has been no change in the Group's position with regard to its investment in Norse Air Limited as reported in the Annual Report and Accounts for 2007. Legal action is ongoing.
A review of the major operations, by division, follows.
Transportation
Five Forty Aviation Limited ("Fly540") (49% holding)
The business concept of Fly540 was to establish a safe and reliable African airline operating to international standards. Initially operating out of Kenya, the successful business model is now being rolled out across Africa. A regional hub is currently being established in Angola, with initial flights expected to commence in August 2008, and plans to open a West African hub in Ghana in the second half of 2008 are advanced. A subsidiary hub is operational in Uganda and feasibility studies for further subsidiary hubs in Zimbabwe, Djibouti, Mozambique, Tanzania, Mauritius and Equatorial Guinea are in process. Each hub will eventually be linked delivering the first true pan-African airline, flying passengers East to West and North to South.
Fly540 Kenya has now been flying for 18 months and has operated profitably in Kenya since December 2007. Domestic passenger numbers have reached up to 20,000 a month making Fly540 Kenya the second largest carrier next to the national carrier. At the start of 2008, as planned, Fly540 Kenya started international flights to adjacent countries including Uganda, Somalia and Southern Sudan.
Lonrho Air (B.V.I.) Limited ("Lonrho Air") (100% holding)
Lonrho Air, established in the British Virgin Islands, owns the aircraft assets used by Fly540. In this structure, the aircraft are financed centrally and asset security is maximized as the aircraft are not owned by the Fly540 operating companies but owned offshore and leased to them. This provides the ability to recover aircraft if appropriate and re-deploy to other operations thus mitigating political and country risks.
In January 2008, Lonrho Air signed an agreement with Avions de Transport Regional, GEI (ATR) to purchase eight of the latest specification, new, ATR 72-500 aircraft. Four of the aircraft are scheduled for delivery later in 2008, with the remaining four to be delivered in 2009. All the aircraft will be branded Fly540. A further agreement with ATR was signed in February 2008 for the purchase of a further two ATR 72-500 aircraft for delivery in 2010 to meet projected demands. These aircraft are new turboprops and one of the most fuel efficient passenger airliners available, permitting Fly540 to provide low cost services across Africa. Lonrho Air is seeking SACE/COFACE guarantees provided by the Governments of Italy and France, which will assist with obtaining finance for the purchase of the aircraft.
SA Independent Liner Services ("SAILS") (67% holding)
SAILS, registered in South Africa, is a scheduled containerised shipping line operating along the West Coast of Africa from South Africa to Europe and return. Lonrho initially acquired 45% of the company with Board control in July 2007 and then a further 6% in October 2007, taking its holding to 51%. Subsequently Lonrho invested a further £5.4m into SAILS to acquire another 16% taking its holding to 67%. Lonrho's investment in SAILS allowed the company to grow its fleet from two to six vessels and introduce 1,000 new 'reefer' chilled containers. SAILS' fleet is now one of the largest reefer container shippers in the region and is a major carrier of chilled goods from South Africa to Europe.
The new ships which were deployed in the first quarter of 2008 are now beginning to establish regular and reliable scheduled routes. Scheduled arrivals and departures need to be demonstrated to potential clients, and load factors are now increasing substantially as the line demonstrates its regularity.
Following the deployment of the four new vessels, further routes will be analysed and, if appropriate, established providing shipping services along the East Coast of Africa, to the Middle East and India, and potentially a Far Eastern service.
Ports and Infrastructure
Luba Freeport Limited ("Luba Freeport") (63% holding )
Luba Freeport, a venture with the Government of Equatorial Guinea, is an oil services and logistics terminal that services not only the oil industry in Equatorial Guinea but also the entire Gulf of Guinea. Luba has two key advantages in this market. Firstly it is a natural deep water port, with depths of up to 18 metres facilitating the largest vessels, and, secondly, the port is a true 'free port', permitting suppliers to land goods and re-export them without duties being levied.
Lonrho has already developed 70 metres of new quay, which was completed on time and on budget in November 2007 at a cost of US$10.8m (£5.4m), and is currently developing a further 83 metres of quay to be completed in September 2008 at a cost of €7.9m (£6.3m).
The clients of the Freeport include Amerada Hess, Mobil Equatorial Guinea, Baker Hughes, Marathon, LOTEG, Schlumberger, Nalco, SBM, Ophir, Petronas, Noble Energy and MI (Equatorial Guinea).
Kwikbuild Corporation Limited ("Kwikbuild") (52.2% holding)
In October 2007, Lonrho acquired a 52.2% shareholding in Kwikbuild providing access to the rapidly growing low cost housing market, with plans to roll the Kwikbuild business model out across Africa.
Kwikbuild provides an economic, cost effective and rapid solution for buildings. Kwikbuild, through its investment in e-Kwikbuild Housing (Pty) Limited provides quality building solutions through the design and development of a range of prefabricated buildings for the school, office and housing sectors. Providing schooling solutions for the Government of South Africa, Kwikbuild expects to build in excess of five hundred class rooms over each of the coming two years.
Support Services
Lonrho Springs Limited ("Lonrho Springs") (100% holding)
Lonrho Springs is focused on the development of international standard water bottling plants. The bottled water market is rapidly growing across Africa with major shortages in most countries for clean bottled water. Many African countries remain importers of bottled water and the high costs associated with this make drinking water an expensive and exclusive commodity.
Lonrho has made significant gains in the African bottled water market with plants currently operating in Maputo, Mozambique and Kinshasa, Democratic Republic of Congo. Since acquiring the technology and brand name of Swissta Water the company has become one of the market leaders in Mozambique.
In December 2007, Lonrho announced that its wholly owned subsidiary, Lonrho Springs B.V.I. ("Lonrho Springs") had signed an agreement to develop a US$9.0m (£4.5m) water bottling plant in Luanda, Angola.
In February 2008, Lonrho announced that it had acquired the rights to Aquamine (Proprietary) Limited in South Africa with the intention of developing this into a substantial South African water bottling company. Also in February 2008 Lonrho announced that it had signed an agreement to develop a new water bottling factory in Lubumbashi in the Democratic Republic of Congo, which will be owned 51% by Lonrho Springs.
Further plants are being investigated for Nigeria, Ethiopia, Libya, Sudan and Kenya.
Combined Enterprise Solutions Limited ("CES") (50% holding) Sociadade Comercial Bytes & Pieces Limitada ("Bytes & Pieces") (65% holding)
Lonrho completed the acquisition of 65% of Bytes and Pieces, one of the leading IT suppliers in Mozambique, in September 2007, which was subsequently rated as the top IT company in Mozambique in KPMG Mozambique's 2007 report.
During the period, Lonrho successfully expanded outside of Mozambique under the name of CES, which currently has an operations office and sales force in Johannesburg. CES holds a master franchise for Dell servers and also distributes HP and Microsoft products. Recent agreements with Tata IT have launched the company as a significant force in the African IT marketplace.
Hotels
Hotel Cardoso SARL ("Hotel Cardoso") (59% holding)
Revenues in the Hotel Cardoso in Maputo have risen by 23% over the comparable period and profits have risen to US$250,000 (£125,000) for the six months to 31 March 2008 from a profit of US$37,000 (£18,500) for the six months to 31 March 2007. Hotel Cardoso is on budget to achieve revenues of US$4.0m (£2.0m) in 2008, earning US$1.0m (£500,000) in profit before tax.
The hotel is currently undergoing a US$1.5m (£750,000) refurbishment of its rooms, which is due for completion at the end of September 2008. This will further increase average revenue per room in 2009 and forecast profits for 2009.
The Grand Karavia Hotel (proposed 50% holding and exclusive management contract)
In February 2008, Lonrho announced that it had been awarded the redevelopment and subsequent management contract for the Karavia Hotel in Lubumbashi, Democratic Republic of Congo.
The refurbishment of the old Sheraton Hotel that has been derelict since 1985 is expected to cost US$20.0m (£10.0m) and will be completed mid-2009. Funding for the development has been sourced from the Development Bank of South Africa and Standard Bank.
Lonrho has a ten year, exclusive, renewable management contract.
Lubumbashi is chronically underserviced with hotel accommodation, and the projections for the hotel, given the quantum of foreign direct investment into the Katanga region, are very promising.
New hotel projects are under consideration in Equatorial Guinea, Angola and Mozambique.
Natural Resources
Lonrho Mining Limited ("Lonrho Mining") (24.16% holding)
Lulo Diamond Concession - Angola
Lonrho Mining's key exploration project, the Lulo Diamond Concession in the Lunda Norte Province in North-Eastern Angola is a highly prospective 3,000km2 diamond concession. On 31 March 2008 Lonrho Mining announced that it had completed an airborne magnetic and radiometric survey covering 1,000km2 within the Concession. The interpretation, by Lonrho Mining's independent geophysical consultant, gave exceptionally encouraging results. The diamond potential of this region is likely to be very high given the activity of an estimated 6,000 artisanal diamond miners within the Cacuilo River terraces. A drilling programme and a bulk sampling operation will commence later this year.
Schmidtsdrift - South Africa
Production for the six months was 2,801 carats from 556,939 tonnes at an average grade of 0.50 carats per hundred tonnes. The production included 42 stones in excess of 5 carats in size.
A total of 4,797 carats were sold during the six months at an average price of US$509 (£254) raising a total of US$2.4m (£1.2m). All sales were made to Unitrade 1266 CC.
Zimbabwe
LonZim Plc ("LonZim") (20% holding and management contract)
During the period Lonrho established LonZim, which was listed on AIM in December 2007 and raised £29.0m to invest in opportunities in Zimbabwe and those related to the Zimbabwean economy.
Lonrho has been appointed by LonZim to provide management support services on the terms of a management services agreement.
Lonrho, on behalf of itself and any of its subsidiaries or companies in which Lonrho has majority control of the board, has agreed not to make investments in Zimbabwe, or an area of Mozambique known as the Beira Corridor, during the period of the management services agreement.
Lonrho received a free carry interest of 20% of the current issued share capital of LonZim, which has resulted in a £7.3m credit to the Consolidated Interim Income Statement in the six months to 31 March 2008, and charges a fee of 2% of funds invested.
In January 2008 LonZim made its first investment through the acquisition of 80% of Blueberry International Services Limited ("Blueberry International"). In March LonZim acquired the remaining 20% of Blueberry International. Blueberry International controls 60% of Celsys, a Zimbabwe Stock Exchange listed company in the security printing and IT business sectors, and 100% of Millpal, an industrial chemical manufacturer and distributor. In March 2008, LonZim announced that it had agreed to acquire 100% of Paynet Limited. Since the period end, LonZim signed an option agreement to acquire a 51% controlling stake in ForgetMeNot Africa Limited and has completed the acquisition of a hotel development site in Beira, Mozambique.
Lonrho Plc
Consolidated interim income statement
For the six months ended 31 March 2008
|
Unaudited 6 months 31 March 2008 |
Unaudited 6 months 31 March 2008 |
Unaudited 6 months 31 March 2008 |
Unaudited 6 months 31 March 2007 |
Unaudited 12 months 30 September 2007 |
||||||
|
Note |
Continuing operations £m |
Acquisitions £m |
Total £m |
Total £m As restated |
Total £m |
|||||
|
Revenue |
17.8 |
- |
17.8 |
4.6 |
11.2 |
|||||
|
Cost of sales |
(20.0) |
- |
(20.0) |
(3.4) |
(11.0) |
|||||
|
Gross (loss)/profit |
(2.2) |
- |
(2.2) |
1.2 |
0.2 |
|||||
|
Other operating income |
- |
- |
- |
- |
0.4 |
|||||
|
Operating costs |
2 |
(11.3) |
(0.4) |
(11.7) |
(4.3) |
(14.7) |
||||
|
Operating loss before financing costs |
(13.5) |
(0.4) |
(13.9) |
(3.1) |
(14.1) |
|||||
|
|
||||||||||
|
Finance income |
0.2 |
- |
0.2 |
0.2 |
0.5 |
|||||
|
Finance expenses |
- |
- |
- |
(0.4) |
(0.9) |
|||||
|
Net financing costs |
0.2 |
- |
0.2 |
(0.2) |
(0.4) |
|||||
|
Share of profit of associates |
- |
0.1 |
0.1 |
- |
(0.1) |
|||||
|
Write off of goodwill and investment in associates |
- |
- |
- |
- |
(3.4) |
|||||
|
Gain on sale of intangible fixed asset |
3 |
- |
7.3 |
7.3 |
- |
- |
||||
|
(Loss)/profit before tax |
(13.3) |
7.0 |
(6.3) |
(3.3) |
(18.0) |
|||||
|
Income tax |
2.3 |
- |
2.3 |
- |
0.6 |
|||||
|
(Loss)/profit for the period |
(11.0) |
7.0 |
(4.0) |
(3.3) |
(17.4) |
|||||
|
Attributable to: |
||||||||||
|
Equity holders of the parent |
(0.8) |
(2.6) |
(14.7) |
|||||||
|
Minority interests |
(3.2) |
(0.7) |
(2.7) |
|||||||
|
Loss for the period |
(4.0) |
(3.3) |
(17.4) |
|||||||
|
Basic and diluted loss per share |
(0.2)p |
(1.2)p |
(6.1)p |
|||||||
Note
The figures in respect of the period ended 31 March 2007 have been restated following the reclassification of the Group's investment
in Norse Air Limited as an associate as disclosed in the Annual Report and Accounts for the year to 30 September 2007.
Lonrho Plc
Consolidated interim balance sheet
As at 31 March 2008
|
Unaudited 31 March 2008 |
Unaudited 31 March 2007 |
Unaudited 30 September 2007 |
|||
|
Total £m |
Total £m As restated |
Total £m |
|||
|
Assets |
|||||
|
Goodwill |
10.5 |
5.9 |
6.5 |
||
|
Intangible assets |
1.4 |
0.3 |
1.2 |
||
|
Property plant and equipment |
45.7 |
25.4 |
36.9 |
||
|
Investments in associates |
1.4 |
1.2 |
- |
||
|
Other investments |
12.7 |
- |
5.0 |
||
|
Deferred tax assets |
4.0 |
- |
2.2 |
||
|
Total non-current assets |
75.7 |
32.8 |
51.8 |
||
|
Inventories |
2.2 |
0.3 |
1.4 |
||
|
Trade and other receivables |
12.3 |
10.3 |
4.0 |
||
|
Cash and cash equivalents |
19.4 |
8.2 |
15.2 |
||
|
Total current assets |
33.9 |
18.8 |
20.6 |
||
|
Total assets |
109.6 |
51.6 |
72.4 |
||
|
Equity |
|||||
|
Called up share capital |
3.8 |
2.2 |
2.8 |
||
|
Share premium account |
73.0 |
17.4 |
33.2 |
||
|
Revaluation reserve |
1.6 |
1.6 |
1.6 |
||
|
Share option reserve |
2.2 |
0.8 |
2.2 |
||
|
Foreign currency reserve |
0.3 |
- |
0.1 |
||
|
Retained earnings |
2.3 |
14.5 |
3.0 |
||
|
Total equity attributable to equity holders of the parent |
83.2 |
36.5 |
42.9 |
||
|
Minority interests |
0.4 |
0.3 |
(0.2) |
||
|
Total equity |
83.6 |
36.8 |
42.7 |
||
|
Liabilities |
|||||
|
Interest bearing loans and borrowings |
- |
- |
1.1 |
||
|
Deferred tax liabilities |
0.7 |
0.6 |
0.7 |
||
|
Obligations of finance leases |
2.1 |
- |
- |
||
|
Other financial liabilities |
3.2 |
1.5 |
1.8 |
||
|
Total non-current liabilities |
6.0 |
2.1 |
3.6 |
||
|
Bank overdraft |
0.5 |
0.1 |
4.3 |
||
|
Interest-bearing loans and borrowings |
3.4 |
3.9 |
0.2 |
||
|
Obligations under finance leases |
0.5 |
- |
8.8 |
||
|
Trade and other payables and accruals |
15.6 |
8.7 |
12.8 |
||
|
Total current liabilities |
20.0 |
12.7 |
26.1 |
||
|
Total liabilities |
26.0 |
14.8 |
29.7 |
||
|
Total equity and liabilities |
109.6 |
51.6 |
72.4 |
||
Note
The figures in respect of the period ended 31 March 2007 have been restated following the reclassification of the Group's investment
in Norse Air Limited as an associate as disclosed in the Annual Report and Accounts for the year to 30 September 2007.
Lonrho Plc
Consolidated interim statement of recognised income and expenses
|
For the six months ended 31 March 2008 |
Unaudited 31 March 2008 |
Unaudited 31 March 2007 |
Unaudited 12 months 2007 |
|
|
Total £m |
Total £m As restated |
Total £m |
||
|
Foreign exchange translation differences |
0.4 |
- |
0.1 |
|
|
Loss for the period |
(4.0) |
(3.3) |
(17.4) |
|
|
Total recognised income and expenses for the period |
(3.6) |
(3.3) |
(17.3) |
|
|
Attributable to: |
||||
|
Equity holders of the parent |
(0.6) |
(2.6) |
(14.6) |
|
|
Minority interest |
(3.0) |
(0.7) |
(2.7) |
|
|
Total recognised income and expenses for the period |
(3.6) |
(3.3) |
(17.3) |
Note
The figures in respect of the period ended 31 March 2007 have been restated following the reclassification of the Group's investment
in Norse Air Limited as an associate as disclosed in the Annual Report and Accounts for the year to 30 September 2007.
Lonrho Plc
Consolidated interim statement of cash flows
|
|
||||||
|
For the six months ended 31 March 2008 |
Unaudited 6 months 31 March 2008 |
Unaudited 6 months 31 March 2007 |
Unaudited 12 months 30 September 2007 |
|||
|
Total £m |
Total £m As restated |
Total £m |
||||
|
Cash flows from operating activities |
(12.5) |
(2.5) |
(9.6) |
|||
|
Cash paid for inventories Cash receipts from customers |
(0.7) (7.8) |
(1.3) (0.1) |
(1.3) (0.6) |
|||
|
Cash paid to suppliers |
1.1 |
0.6 |
4.1 |
|||
|
Cash expensed from operations |
(19.9) |
(3.3) |
(7.4) |
|||
|
Interest paid |
- |
(0.3) |
(1.2) |
|||
|
Net cash from operating activities |
(19.9) |
(3.6) |
(8.6) |
|||
|
Cash flows from investing activities |
||||||
|
Acquisition of property, plant and equipment |
(8.7) |
(6.9) |
(18.6) |
|||
|
Acquisition of investments |
(0.4) |
(2.6) |
- |
|||
|
Net proceeds from sale of investments |
- |
3.5 |
1.9 |
|||
|
Interest received |
0.2 |
0.2 |
0.5 |
|||
|
Acquisition of subsidiary, net of cash acquired |
- |
(3.9) |
(2.1) |
|||
|
Net proceeds from closure / disposal of subsidiaries |
- |
- |
1.0 |
|||
|
Acquisition of associates |
(2.1) |
- |
(4.4) |
|||
|
Net cash from investing activities |
(11.0) |
(9.7) |
(21.7) |
|||
|
Cash flows from financing activities |
||||||
|
Proceeds from the issue of share capital |
32.8 |
- |
15.8 |
|||
|
Funds received in advance of future share issue |
- |
- |
8.0 |
|||
|
Loan advance |
2.5 |
0.8 |
1.3 |
|||
|
Loan repayment |
(0.2) |
- |
(0.3) |
|||
|
Net cash from financing activities |
35.1 |
0.8 |
24.8 |
|||
|
Net increase/(decrease) in cash and cash equivalents |
4.2 |
(12.5) |
(5.5) |
|||
|
Cash and cash equivalents at 1 October 2007 |
15.2 |
20.7 |
20.7 |
|||
|
Cash and cash equivalents |
19.4 |
8.2 |
15.2 |
|||
Note
The figures in respect of the period ended 31 March 2007 have been restated following the reclassification of the Group's investment
in Norse Air Limited as an associate as disclosed in the Annual Report and Accounts for the year to 30 September 2007.
Notes
1. Note of preparation
1.1 These interim financial statements for the period ended 31 March 2008, which are neither audited or reviewed have been prepared for the first time consistent with International Financial Reporting Standards ("IFRS") and do not comprise full accounts within the meaning of S240 of the Companies Act 1985. Results for the comparative periods have been restated under IFRS. The changes in accounting polices resulting from the IFRS restatement, together with the financial impacts of these changes and the full IFRS accounting polices of the Group are set out in the document entitled 'IFRS Restatement Report', which can be found on the Group's website at www.lonrho.com.
1.2 This unaudited interim report does not comprise the Group's statutory accounts. The financial information in respect of the year ended 30 September 2007 is extracted from the statutory accounts under UK GAAP for this period and amended by adjustments arising from the implementation of IFRS. The statutory accounts for this period have been filed with the Registrar of Companies. The auditors report on these accounts was qualified in respect of the limitation in audit scope in respect only of the information relating to the analysis and disclosure of the results of the Group's associate undertaking for the period.
1.3 Basic earnings/(loss) per share is arrived at by the dividing profit/(loss) for the period by the weighted average number of shares in issue during the period. Diluted earnings/(loss) per share is arrived by dividing the profit/(loss) by the weighted average number of shares in issue throughout the period, adjusted for the dilutive effect of potential ordinary shares.
2. Operating costs
Included within total Group operating costs of £11.7m (2007: £4.3m) is an amount of £4.5m (2007: £2.1m) relating to head office administrative expenses.
3. Gain on sale of intangible fixed asset
The Group received shares in LonZim Plc worth £7.3m during the period. In return for this Lonrho Plc has entered into a non-compete agreement with LonZim Plc and hence this gain is reported as a sale of an intangible fixed asset for the period in the Consolidated Interim Income Statement.
Related Shares:
Lonrho