Results for the year ended 30 September 2010

6 December 2010

Lonrho Plc

("Lonrho" or the "Company")

Results for the year ended 30 September 2010

Lonrho (AIM:LONR), the conglomerate focused on investing in and building businesses in Africa, is pleased to publish its audited results for the year ended 30 September 2010. These are broadly in line with the quarterly report and trading update released on 2nd November 2010.

Lonrho has continued to develop its investments in agribusiness, infrastructure, transportation, hotels and support services.

Financial review

The trading results remain in line with the Company's expectations. The year has seen strong growth in the existing businesses and Lonrho made several complementary strategic acquisitions to further develop its core divisions.

·; Turnover on continuing operations increased by 20% to £107.8m (up from £89.7m in 2009)

·; Net assets increased to £127.7m (up from £81.1m in 2009)

·; Profit before tax on continuing operations was £0.5m (2009: loss of £5.9m)

David Lenigas, Executive Chairman of Lonrho commented:

"This has been a strong year for Lonrho. The foundations are already in place in each Group division to deliver the budgeted expansion in the coming year. We are seeing growing demand for our core services across all the seventeen countries in which Lonrho operates.

Africa is making real progress, stimulated by a population that has reached one billion people and the booming oil and mineral industries that are driving economic growth and the concerns about global food shortages that are stimulating the agriculture sector. "

LONRHO ENQUIRIES

Lonrho Plc +44 (0)20 7016 5105

David Lenigas, Executive Chairman +44 (0)7881 825378

Geoffrey White, Chief Executive Officer +44 (0)7717 307 308

David Armstrong, Finance Director +44 (0)7833 054 693

Pelham Bell Pottinger

Charles Vivian +44 (0)20 7861 3126

+44 (0)7977 297 903

James MacFarlane +44 (0)20 7861 3864

+44 (0)7841 672 831

Beaumont Cornish Limited (Nomad)

Rosalind Hill Abrahams +44 (0)20 7628 3396

Roland Cornish +44 (0)20 7628 3396

Statutory accounts

The financial information set out in this announcement does not constitute the Company's statutory accounts for the years ended 30 September 2010 or 2009. The financial information for the year ended 30 September 2009 is derived from the statutory accounts for that year. The audit of statutory accounts for the year ended 30 September 2010 is complete. The auditors reported on those accounts, their report was unqualified and did not include references to any matters to which the auditors drew attention to by way of emphasis without qualifying their report.

Lonrho's full annual report and financial statements are published on its website (www.lonrho.com) today and are being posted to shareholders next week.

Chairman's Statement

David Lenigas

Executive Chairman

3 December 2010

I am delighted to report to shareholders that Lonrho is making excellent progress. Lonrho is specific in that it is exclusively focused on the growth opportunities relating to the emerging African economy.

We are tremendously proud of the Lonrho legacy of more than one hundred years of building real businesses across the continent. Hundreds of thousands of people have had their lives improved by Lonrho over the years, and the Group continues to create employment and prosperity where it operates.

Private sector investment is a real driver of sustainable economic development in Africa. Lonrho operates in seventeen countries and our portfolio of businesses is strategically focused on business sectors that are an integral part of the growth of Africa.

Lonrho's five core philosophies continue to be clearly defined as:

·; 100% focus on Africa.

·; Geographical diversity across the continent to mitigate risk.

·; Operations in five separate divisions, each independent of the other.

·; Focus on servicing the requirements of the oil, agriculture and mineral sectors, the drivers of economic growth in Africa.

·; Build the highest quality management teams and operate to international standards.

In Africa the opportunities for responsible businesses are significant. The continent today has over one billion people. By 2050 it will have doubled to two billion, equating to 22% of the global population (UN population division). According to a McKinsey report in 2010, Africa is forecast to have 128 million households with disposable income by 2020.

Gross domestic product (GDP) in Africa between 2000 and 2010 increased on average at 5.5% per year, with many countries delivering double digit growth. External debt has decreased from 65% of GDP to 23% and investment has grown from 17% of GDP to 23%. A 2010 McKinsey report on Africa forecast that Africa's collective GDP will reach US$ 2.6 trillion (£1.67 trillion) by 2020.

Africa now has some of the fastest growing economies in the world primarily driven by the expanding oil, gas and mineral industries. As a result, Africa is seeing growing attention from the global investment community, which is gradually becoming more aware of the economic potential of the continent.

Increasing political stability, growing foreign direct investment and improving levels of transparency are all assisting economic growth. The increasing number of success stories in Africa, such as Angola, Ghana, Equatorial Guinea and Mozambique, are delivering real economic progress and offer some of the most exciting growth opportunities globally. However, the continent continues to suffer from a widely portrayed international perception that is outdated and years behind the reality of progress on the ground.

Lonrho is successfully working with the growing economies in Africa and is helping to deliver the infrastructure and service related industries that are essential to support growth.

Chief Executive's Statement

Geoffrey White

Director and Chief Executive Officer

3 December 2010

Lonrho has had a good year. The Group is showing growth across all divisions and, importantly, the management teams across the Group operations have delivered on the objectives set by management for the past twelve months.

Financial highlights for the year include: 

·; Turnover on continuing operations increased by 20% to £107.8m.

·; EBITDA of £9.4m, a £7.2m increase on 2009. 

·; Full year profit before tax on continuing operations was £0.5m, compared with a loss of £5.9m for the financial year to 30 September 2009.

·; Net assets at year end stood at £127.7m compared with £81.1m as at 30 September 2009. 

·; Cash balances in the Group at year end were £7.8m. 

The Group is in a strong position with each division performing well, with sound management teams in place to continue to drive development and further growth. The Group remains focused on prudent investment in the emerging African market. With geographical and industry diversity, the Group significantly mitigates risk from both a political and commercial perspective.

Lonrho has continued to focus on its five current divisions: agribusiness, infrastructure, transportation, hotels and support services. Each of these has clear opportunity for organic growth. The foundations of the businesses in each divisional sector are established and successful, and the corporate strategy for the coming year is to develop and replicate existing businesses to increase turnover and profitability and to build a wider geographical spread.

Margins are constantly reviewed for each division and compared with industry standards. As individual businesses expand, margins often have the ability to be increased as scale reduces operational costs and greater volumes improve purchasing and logistics overheads.

Quality human resources are key to success in any market, but especially in an emerging market. Lonrho makes great efforts to ensure that its divisional and operational management are of the highest possible calibre and are top of their industry sectors. This is fundamental to the corporate aim of meeting international standards of operations in all of Lonrho's businesses. As the Group develops, so its ability to retain and develop existing management and to attract quality new management for growth improves.

The Group focuses on servicing the requirements of the oil, mineral and agriculture sectors in Africa. The countries that have significant oil, mineral or agricultural output are those where the strongest growth can be seen. As a consequence of this policy, Lonrho's businesses typically operate in an environment that is delivering strong market growth.

Outlook

Lonrho has reached an important point in its development. Having moved into pre-tax profitability for the financial year and following on from its successful bond issue after the financial year end, the Group is entering the new financial year well funded with several new projects coming on stream to deliver further growth. 

During the financial year Lonrho continued with its investment program in a number of new projects across the Group that the Directors believe will be reflected in further growth for the 2011 financial year.

Chief Executive's Review

New Lonrho businesses

New businesses within the Group include:

Grand Karavia Hotel

The Grand Karavia hotel in Lubumbashi, the centre of the Democratic Republic of Congo copper province, was opened by President Kabila on 15 June 2010. The only international standard hotel in the centre of the burgeoning copper region, the Grand Karavia has seen immediate strong demand for the hotel and its conference facilities. The hotel commenced official trading after the Presidential opening and will be a significant addition to the revenue and profitability of the Group for the coming year.

Oceanfresh

In June 2010 Lonrho acquired a 51% stake in Oceanfresh, a leading vertically integrated producer and supplier of premium, sustainable seafood sourced from Southern Africa, including Mozambique, Namibia and South Africa. As a result of synergies in processing and handling with existing Lonrho agricultural businesses, significant operational cost efficiencies have been achieved. As a result of joining the Lonrho Group, Oceanfresh has been able to expand its core business outside of its traditional South African retail markets and post year end has commenced volume deliveries into the European and US markets.

The demand for wild (not farmed) sustainable sourced fish is growing globally. Oceanfresh fulfils this requirement. There is grave concern about sustainable fishing practices in many traditional fishing grounds, with claims of overfishing, quota abuse and depletion of fish stocks threatening the long term survival of many species. Oceanfresh operates within, and supports, the World Wildlife Foundation SASSI (Southern Africa Sustainable Seafood Initiative).

Lonrho is committed to helping to ensure that wild fish stocks are managed responsibly and that stocks will continue for the benefit of generations to come. The scheduled roll-out of Oceanfresh products to the international markets in the USA and Europe during 2011 will establish Oceanfresh as one of the leading international seafood brands.

John Deere

The investment that was made during 2010 in the John Deere distributorship in Angola will allow the new facility, incorporating sales, servicing and training, to open early in 2011. The Angolan Government is funding the rapid rebuilding of the agricultural sector across Angola. Historically, agriculture was a very successful economic sector for Angola. The abundant water, land and the ideal climate gives Angola an enormous agricultural potential for serving both the domestic and export market. The availability of quality equipment, servicing and training from Lonrho's John Deere operations in Angola are an essential element of the support necessary for the growth in this sector.

Trak Auto

In April 2010 the Group acquired 100% of Trak Auto, the John Deere and Komatsu equipment dealership in Mozambique. During the year, Trak Auto started to supply highly competitively priced John Deere tractors manufactured in their Indian factory to the Mozambique market.

Fly540 Angola

The demand for an international standard domestic and regional airline in the booming Angolan economy is clearly evident. The establishment of Fly540 Angola and the process of launching the first private sector International Civil Aviation Organisation (ICAO) registered airline for Angola has been a long and difficult procedure. This has involved the training and education of staff to the standards required for an international airline. Fly540 Angola should commence commercial operation by the end of 2010.

Post year end bond issue

In October 2010 the Company completed the issue of US$70m (£44.3m) Guaranteed Convertible Bonds due 2015 ("Bonds"). The bond issue was significantly oversubscribed and was approved at a shareholder meeting on 29th October 2010. The proceeds of the Bonds will be used to restructure some expensive debt within the Lonrho divisions and provide the capital necessary for the agribusiness division to meet the targeted development schedules for 2011 into the US and European markets.

A review of the five divisions follows:

Agribusiness

Lonrho's Agribusiness division remains the Group's largest division, providing 51% of Group turnover.

The division focuses on the vertical integration of the Southern African agricultural sector, providing the production, sourcing, logistics, processing and distribution of agricultural products from Southern Africa to the consumer, both to the domestic market and globally.

Lonrho Agribusiness focuses on the fruit, vegetable, fish and meat sectors, working closely with a wide range of the leading retailers in South Africa and internationally in Europe, the USA, Middle East, and Scandinavia.

Agro-economic forecasts are raising growing concerns regarding the worldwide capabilities for the global agricultural industry to meet future demand. The United Nations Food and Agriculture Organisation predict that global agriculture will have to increase 70% to meet food demand forecasts by 2050. The situation is being made worse by the continual depletion of historic water supplies available for traditionally agriculturally productive regions, changing global climate patterns and increasing desertification.

Southern Africa is seen as a partial solution to the pending threat. Southern Africa has abundant under-utilised land, a willing labour force and the ideal climatic conditions (rainfall and heat units) to become a significant global source of food. Africa has more than a quarter of the world's arable land yet only generates 10% of global agricultural production (UNFAO). The potential is tremendous.

Lonrho focuses operations on what it believes is the strongest potential production belt across the continent, from Angola across to Mozambique, including Zimbabwe, Zambia, and the south of the DRC and Kenya. This region, including South Africa, not only has the correct elements in place to be productive, it also has a strong domestic consumer market and efficient logistic access to highly competitive air freight capabilities out of Johannesburg to deliver to the international marketplace.

The Southern African region is becoming an important agricultural producer for the world, and Lonrho Agriculture is aligned with this growth opportunity with operations in South Africa, Mozambique, Zimbabwe, Zambia and Angola. The division is well positioned to benefit from the forecast growth across the region.

Agribusiness highlights

·; Agribusiness divisional turnover for the full year increased 19% to £55.3m.

·; In May 2010 the Group increased its holding in Rollex to 100% by acquiring the remaining 49% not previously owned. In August 2010 the Group also increased its holding in Fresh Direct to 100% by acquiring the remaining 49% not previously owned.

·; Irrigation equipment has been installed on 200 hectares of land and approximately 119,000 fruit trees were planted during the year. These will be delivering volume commercial fruit crops during the coming financial year and have already started yielding produce for Tesco, Sainsburys and Waitrose in the UK.

·; An agreement has been reached with Xstrata for Lonrho to establish a community based commercial farming and agri-processing project site, which is a template project that has significant future potential. Directly aligned with President Zuma's Comprehensive Rural Development Programme (CRDP), the project, funded by Xstrata, will develop community based farms that act as cooperatives. Through the existing Lonrho logistics cold chain the farms will have access to both domestic and international commercial markets. 

·; During the year, Rollex made good progress on improving margins by increasing processing efficiencies, rationalising costs where possible and negotiating better terms from customers. Gross margins for the final quarter stood at 15%, compared to 13% for the final quarter in the previous year.

·; Following an eight month evaluation period, Oceanfresh is now supplying Costco with hake fillets throughout Los Angeles, San Diego and Texas with a phased roll-out starting in Chicago and the Northwest regions, building to all US stores by mid-2011. Following on from the success of the hake fillet product, Costco has now agreed to include six new lines commencing delivery in early 2011.

·; Checkers, a leading South African retailer, has recently awarded Oceanfresh the title of 'supplier of the year' and added a further two new Oceanfresh product lines to their buying list. Shoprite has also become a new customer for Oceanfresh.

Infrastructure

West Africa is seeing a spate of exploration projects for the oil industry, and indicated oil and gas reserves and proven resources for the region are growing fast. West Africa's traditional oil producer, Nigeria, is now only one of several economies seeing rapid economic development on the back of oil revenues. Angola became the Chair of OPEC and has increased production to over 2 million barrels a day, arguably becoming Africa's largest producer. Equatorial Guinea, Ghana, Gabon and the DRC all have growing oil industries and some estimates indicate that up to 25% of global oil resources may be in Africa.

The USA currently sources 18% of its oil imports from Africa and 30% from China. Both are forecast to increase these levels as Africa develops the oil sector further. The oil industry is stimulating significant foreign direct investment ("FDI"), such that oil producing states received 80% of total African FDI inflows of US$59 billion (£37.8 billion) in 2009. The oil industry is now the pre-eminent economic driver in West Africa.

Luba Freeport, the Lonrho oil services terminal in the Gulf of Guinea which is a private public partnership with the Government of Equatorial Guinea, has seen increases in the number of vessels using the port and the number of tenants based there. Revenues are growing month on month and the returns from operating an oil service terminal are higher than a standard port due to the long term contracts with tenants (generally ten years for oil companies and five years for service companies) and the economic strength of the oil sector. Lonrho has invested heavily in building the infrastructure for the port and the returns on the investment are now tangible. The initial phase of the development of the port is now complete per the original business plan and the right to the concession granted by the Equatorial Guinea government is now capable of being valued and recognised. Vessel movements at Luba Freeport have grown to an average of 107 a month from 67 last year as the port has developed into the centre for the oil industry in Equatorial Guinea.

e-Kwikbuild's prefabricated buildings are an ideal solution to meet the growth of the emerging African marketplace. Fast to deliver and install, e-Kwikbuild's buildings provide cost effective solutions for schoolrooms, clinics, offices, workers' camps and general purpose buildings in Africa. Designed to a quality standard that meets a 30 year product life, the company is seeing growing demand for its products in South Africa and in the rest of Africa.

Infrastructure highlights

·; The continuing growth in the number of tenants and vessel movements resulted in the annual turnover for the port growing to £11.0m, up from £8.0m in the prior year.

·; New tenants and further oil blocks being released by the Government will continue to build future port revenues.

·; Tenaris, a world leading supplier of pipes, tubular products and related services for the world's energy industry, has established a new logistics facility, which will provide products and services to the oil companies operating from Luba Freeport and in the Gulf of Guinea.

·; Dickerman, one of the world leaders in surface preparation and coating activities both offshore and onshore for 30 years, has established a new base at Luba Freeport.

·; In December 2009 the Group increased its holding in Kwikbuild, the holding company of e-Kwikbuild, to 70%.

·; e-Kwikbuild's turnover has doubled year on year and margins have improved as a result of investment in the manufacturing process and improved raw material pricing. As the business develops, further margin improvements are expected as volumes grow. 

Transportation

International standard regional aviation is a fundamental requirement for any emerging market. Africa has over one billion people hampered by poor infrastructure, a lack of roads and railways, and long distances between urban populations. Regional aviation is a market that is growing rapidly as the requirement for people to travel around the continent expands with economic development.

The number of passengers flying into Africa has seen strong growth, and the continent is serviced by an expanding number of global carriers such as BA, Virgin, Delta, Air France, Emirates, Qatar, and Singapore. In 2009, 31 million international air passengers travelled to Africa.

Lonrho's regional airline, Fly540, is building an international standard regional carrier operation that will be the first airline to address two markets, the regional movement of passengers within Africa, East to West and North to South, and the regional distribution of passengers arriving in Africa from intercontinental flights.

This market is currently underserved and Fly540 is already well established in the roll-out of the first pan-African network centred around three strategic hubs in Kenya, Angola and Ghana. Fly540's East African hub is showing strong growth and has built market share to 15% of the domestic market in Kenya. The services into Tanzania, Uganda and Burundi further expanded the network during the year.

Transportation highlights

·; Turnover in the transportation division was £21.5m and the Fly540 network is building towards carrying half a million passengers per year. This will grow significantly once the Angolan and Ghanaian hubs are operational and the objective for the network remains to be connecting eighteen countries by the end of 2012.

·; Fly540 Angola, after a long drawn out process, is nearly ready to commence commercial operations. The operations have undergone an extensive ICAO audit and Fly540 Angola will be the only private sector airline in Angola that is ICAO registered. The Angolan regional and domestic market remains significantly underserved and the demand for Fly540 Angola to meet this latent demand is clear. 

·; Fly540 Ghana is expected to commence operations in 2011.

Hotels

Hotels are an important fundamental to building an economy in an emerging market. The ability for businessmen and investors to meet, stay and transact in a safe and quality environment has a direct correlation with their propensity to transact, invest, build businesses and to drive economic development.  Lonrho focuses on management contracts for third party owners and its own hotel portfolio.

Lonrho Hotels is a long established and recognisable brand name in Africa. The hotel management team is actively sourcing new hotel projects for the Group where it is believed that Lonrho can add real brand value. The hotel sector in Africa accommodates an estimated 45 million international visitors a year.

Hotels highlights

·; The hotel division, driven by the continued strong performance of Hotel Cardoso and the opening of the Grand Karavia in June 2010, has increased turnover 74% year on year. 

·; A new CEO for Lonrho Hotels has been recruited who has worked with some of the world's strongest hotel brands such as InterContinental, Holiday Inn, LeMeridian, Grosvenor House and Crowne Plaza.

·; The Hotel Cardoso in Maputo has seen occupancy levels remain over 80% all year. Room rates have increased 24% on the prior year following the completion of the refurbishment program and the opening of the new restaurant and conference facilities.

·; The Grand Karavia hotel, opened by President Kabila in June 2010, is seeing occupancy and conference business building strongly since its inauguration. The only international standard hotel in Lubumbashi, the centre of the copper region of the DRC, the property has established itself as a centre for Government, business and social events.

·; The Leopard Rock hotel (management contract) has continued to attract conferences, tourists and golfers to the superb resort and golf course. Having completed the refurbishment program, the resort is seeing growing occupancy levels. The resort is in the process of organising a Pro-Am event to be held early in 2011, which will attract some of the top South African PGA professionals.

Support Services

Lonrho IT (comprising Bytes & Pieces, CES and Indit)

The requirement for quality corporate IT services in Africa is stimulated by foreign direct investment as companies develop projects across the continent. The Lonrho strategy to focus on the oil, mineral and agriculture sectors that drive economic growth in Africa implicitly means that these sectors require complementary IT infrastructure as they develop. Lonrho IT has, as a result, seen strong growth during the year and continued growing demand for its services.

A full systems integrator and manager, Lonrho IT designs, builds, develops and integrates IT solutions for large corporate clients, banks and Governments and then undertakes management contracts to run and manage installations. Lonrho IT is a top tier distributor for Cisco, Microsoft, Dell and Hewlett Packard systems and equipment and is strategically building a pan-African network of IT companies.

Already the market leader in Mozambique, Lonrho IT has successfully established further operations in South Africa and Zambia and will open in three further countries in the coming year.

Lonrho Water

The demand for clean, potable, water to be available to the one billion people living across Africa is immense. From both a social development and a health perspective the requirement for the continent to build the ability to provide safe drinking water to the population is fundamental.

Lonrho's water division develops and operates water bottling plants and this year has further utilised the technology from these plants to develop a stand alone, solar powered, containerised water purification plant. These are suitable for a myriad of applications where a local water source (river, borehole, lake) is used for water supply. The Lonrho Water unit will take any local water source and treat the water to ensure it is potable and safe. The interest in the unit has been significant from corporates, municipalities, central governments and the agricultural sector.

Support services highlights

·; The support services division has seen annual turnover increasing 22% in the division to £11.1m. 

·; The Lonrho IT company, Bytes & Pieces, won the tender to implement the IT infrastructure for Riversdale Mozambique (a coal mining operation in Tete, Mozambique). The project involves implementation of a turnkey solution over three sites, supplying, installing and configuring the Riversdale servers, storage and workstations. Bytes & Pieces also won the managed services contract for Riversdale IT and continues to provide ongoing support and service.

·; Tribunal Adminstrativo, the organisation which handles contracts for the Government of Mozambique, has awarded Bytes & Pieces the contract for the installation of their Wide Area Network (WAN). The project involves designing and implementing the IT network infrastructure, WAN optimisation and post-installation services.

LonZim Plc

LonZim is an investment company that is focused on investments in Zimbabwe and the Beira corridor of Mozambique and is quoted on the AIM market of the London Stock Exchange. Lonrho Plc owns 24.61% of LonZim and holds a management contract to manage it. LonZim has acquired a number of companies in Zimbabwe and has invested in restructuring and recapitalising them to prepare for economic recovery in the country. The opportunities for growth in the Zimbabwe market are significant, and the beginning of an economic recovery is evident across the LonZim Group. LonZim has invested £29m in creating a portfolio in Zimbabwe that is well placed for growth. During the year, each company has reported progress and become financially independent. Businesses acquired include: the iconic Leopard Rock hotel; a leading commercial security printing company; a chemical distribution company; a microfinance company; and the foremost electronic funds transfer platform for payroll and interbank transfers. LonZim also holds the rights to FMNA, an instant messaging software package for cell phones that permits users to send and receive data and emails on a standard mobile. FMNA has seen significant interest from cell phone companies across Africa and is building a large footprint with carriers such as Econet, Glo, Safraicom, Warid and others.

Lonrho Mining Limited

Lonrho held a 13.16% interest in ASX listed Lonrho Mining at the year end. Lonrho Mining holds the Lulo diamond concession in Angola that covers a total area of about 3,000km2 and is located in the Cuango River Basin within the Lunda Norte Province of north-eastern Angola. The project area is situated approximately 630km from Angola's capital city of Luanda and can be accessed via sealed road.

The project is operated as a joint venture with the Government-owned diamond company, Endiama, the exclusive concessionary for Angolan diamond mining rights. Under the joint venture arrangement, Lonrho Mining holds a 39% interest in the concession, with Endiama holding a 51% interest and the remaining 10% owned by a private Angolan interest. Lonrho Mining is the manager and operator on the concession and funds all exploration activities.

The Lulo Project, which covers both an extensive alluvial diamond field and more than 200 kimberlite targets, has commenced sampling on the concession, operating a Dense Media Separation plant. Early results have been very positive with the recovery of large, quality diamonds from the initial sampling, including a 22.25ct gem quality diamond post year end.

Corporate Social Responsibility

Lonrho Group companies make a strong contribution to development by supporting economic growth in Africa. Each of the five industry sectors in which the Lonrho Group operates: Agribusiness, Infrastructure, Transportation, Hotels and Support Services, are important to Africa's economic growth and create employment and prosperity in the communities where Lonrho works. Lonrho's core philosophy is building long term sustainable businesses in Africa.

Operational: Employee Health and Safety and Training

Responsible business practices are important within the Group's operations. This includes the health and safety of staff and their training and skills development. Examples include:

·; Luba provides work experience opportunities for students and has an extensive ongoing training programme for employees, which includes internationally recognised qualifications.

·; In the Lonrho Hotels division, the Hotel Cardoso in Mozambique provides an in-house clinic for staff and immediate families, with a full time nurse and a qualified doctor who visits the clinic twice daily, whilst employees at the Grand Karavia Hotel in the Democratic Republic of the Congo are offered free medical treatment for themselves, their spouses and up to five children. Staff members at the Grand Karavia are benefiting from training in information technology, first aid and CPR.

·; Rollex complies with international standards such as BRC Global Standards and the Hazard Analysis Critical Control Point.

·; e-Kwikbuild is a level 1 Broad Based Black Economic Empowerment company and seeks to promote the transfer of skills and creation of work opportunities for people local to their projects. The company is working towards ISO 18001 certification for their Occupational Health and Safety Management System.

Strengthening the Local Economy and Protecting the Environment

The Group is mindful of the impacts its businesses have on their environment. Examples of the initiatives taken by Lonrho Group companies include:

·; Complete Enterprise Solutions is encouraging staff to use less paper in their work and to recycle where possible and are now looking to gain ISO 14001 on Environmental Management Systems.

·; The town of Luba currently has no means of disposing household waste so Luba Freeport supplies waste skips throughout the town and collects and disposes local waste daily.

·; Oceanfresh has a Sustainable Seafood Policy and actively participates in the World Wildlife Fund's South African Sustainable Seafood Initiative. The company works closely with other stakeholders to improve practices and to attain Marine Stewardship Council certification on its products.

·; Hotel Cardoso separates and recycles hotel waste, has low energy bulbs across the hotel and wherever possible uses recycled paper for stationary and consumables.

·; e-Kwikbuild's buildings are energy efficient and resistant to extreme weather conditions

·; Fly540 donated tree seedlings which were planted at the Kenya National Park.

·; Luba Freeport supports an open air market in the town by supplying floodlighting and sponsors an English language night school for the local community to help them access job opportunities in the oil and gas industry.

·; Rollex provides support to farms in terms of advice on new farming techniques and quality inputs.

Supporting Communities

All Lonrho companies have a strong tradition of supporting local communities. In some cases financial support is given, in others the support is in kind. For example:

·; Hotel Cardoso has supported the repainting of the local high school and regularly supports Imagine Mozambique to cover costs of food support and distribution to vulnerable families and children. The hotel also donates soap to campaigns that highlight the importance of hand washing to poor communities.

·; Fly540 has supported numerous local community organisations by providing free return flight tickets. It has also supported a community service project of Médicins Sans Frontières by airlifting, free of charge, doctors and medicines in Kenya and has supported the Imani Childrens' Home and the Terry Hope Centre, a children's orphanage.

·; Rollex donates vegetables, fruit and salad to a local old age home and supports the education of children at Churchill farm while their parents work.

·; Luba Freeport sponsors a pre-school in Luba, supplies medicines to the local hospital and provides emergency response services for fires in the Luba area through a qualified fire fighting unit.

·; e-Kwikbuild has supported two day care centres for children from disadvantaged communities in Cape Town.

The Company has established a Board Committee on Corporate Social Responsibility (CSR). The Committee is developing a strategic approach to CSR across the Lonrho Group.

Executive Directors

David Lenigas Executive Chairman

David Lenigas was appointed to the Board of Lonrho on 21 December 2005 and holds a Bachelor of Applied Science in Mining Engineering. He has extensive experience operating in the public company environment and is currently the Executive Chairman of LonZim Plc, Leni Gas & Oil Plc and Solo Oil Plc. Mr Lenigas is also a Non-Executive Chairman of Lonrho Mining Limited and is a Director of Vatukoula Gold Mines Plc and Reef Resources Ltd.

Geoffrey White Director & Chief Executive Officer

Geoffrey White holds a BSc in Economics andManagement Science and joined the Board of Lonrho Plc on 5 October 2007, having been Chief Operating Officer from 1 May 2007. . During his 29 year career he has held senior management roles with Thomas Tilling Plc, BTR Plc, Dee Corporation Plc, Asda Plc and latterly worked for five years for a private investment firm based in London. He has been responsible for the planning, financing, development and management of a range of projects in the leisure, industrial and natural resource sectors. These projects include establishing joint ventures with international corporations such as Hilton Hotels International, Ford Motors (PAG), Praton International GmbH and FFS Refiners (pty) Ltd. Prior to joining Lonrho he had direct experience with the natural resources, distribution and logistics sectors in Africa. He is also an Executive Director and the Chief Executive Officer of LonZim Plc.

David Armstrong Finance Director

David Armstrong (FCA) joined Lonrho Plc as Finance Director on 1 December 2008 and brings with him extensive experience of operating across Africa having been, until October 2004, the Commercial Director of Diageo Africa with combined functional responsibility for finance, information systems, strategy and business development. He contributed to the successful deployment of Diageo's pan-African growth strategy, encompassing over 50 countries, and was also the COO of McArtherGlen in the UK and Europe. He is also the Finance Director of LonZim Plc.

Emma Priestley Executive Director

Emma Priestley was appointed Executive Director on 24 February 2006, having worked in investment banking for the previous five years following a career as a mining engineer. She has a background in mining and financial services having worked with consultants IMC Mackay & Schnellman, investment bank CSFB, advisors VSA resources and Ambrian Partners, where she worked as a corporate broker and advisor. Emma is a graduate of Camborne School of Mines, a Chartered Mining Engineer and Chartered Mineral Surveyor. She is also an Executive Director of LonZim Plc.

Non-Executive Directors & General Counsel

 Jean Ellis Non-Executive Director

Jean Ellis is a Chartered Accountant and Chartered Tax Advisor, and holds an Insolvency Practitioner's license. She is the senior partner in the regional firm of Chartered Accountants, Duncan Sheard Glass, having been a partner there since 2002. Prior to this, she was Group Financial Controller and Tax Manager with Lonrho Plc and holds a number of directorships for its subsidiary companies. Jean has a Bachelor of Arts Degree in Pure Mathematics from Liverpool University. She was formerly Finance Director of Lonrho Plc, having been appointed on 1 June 2007, and became a Non-Executive Director on 1 December 2008. She was also formerly Finance Director of LonZim Plc and is now a Non-Executive Director of LonZim Plc.

Ambassador Frances Cook Non-Executive Director

A former U.S. ambassador to Burundi, to Cameroon and to the Sultanate of Oman, Ambassador Cook also held numerous senior positions in the Department of State, including Deputy Assistant Secretary of State for Refugee Programs, and Deputy Assistant Secretary of State for Political-Military Affairs, Consul General in Alexandria, Egypt, and Director for West Africa. She transitioned to the private sector in May 1999, where she runs an international business consulting firm, The Ballard Group llc. Ambassador Cook is also a Director of Global Options Group (NASDAQ), and the Corporate Council on Africa. She is a Senior Fellow at the Center for Naval Analyses, and a member of the Council on Foreign Relations. She was educated at the Universities of Virginia and Harvard, and resides in Washington, D.C.

Kiran Morzaria Non-Executive Director

Mr Morzaria holds a Bachelor of Engineering (Industrial Geology) from the Camborne School of Mines and an MBA (Finance) from CASS Business School. He has eight years of experience in the mineral resource industry covering gold and diamonds. Mr Morzaria spent his first four years in exploration, mining and civil engineering and in 2004 was appointed Finance Director of Vatukoula Gold Mines Plc. In this role, Mr Morzaria has been active in corporate acquisitions, joint venture agreements, valuations, qualified persons reports and due diligence. Mr. Morzaria is also currently a non-executive director of Solo Oil Plc and Hot Tuna (International) Plc.

Michael Bennett General Counsel

Michael Bennett has a BA LLB degree from Rhodes University in South Africa and was admitted as a legal practitioner in the Republic of Zimbabwe in 1996. He practised law at one of the biggest firms in Zimbabwe before moving to the United Kingdom in 2000 where he joined a corporate law firm in Central London specialising in mergers and acquisitions and AIM related transactional work. He qualified as an English solicitor in 2001 becoming a partner in 2004. Michael has specialised in the acquisition and disposal of companies across a variety of sectors and in jurisdictions ranging across Africa, Europe, the former Soviet Union and North America.

Statement of Directors' responsibilities in respect of the Annual Report and Accounts

The Directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the Directors to prepare Group and parent company financial statements for each financial year. As required by the AIM Rules of the London Stock Exchange they are required to prepare the Group financial statements in accordance with IFRSs as adopted by the EU and applicable law and have elected to prepare the parent company financial statements on the same basis.

Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and parent company and of their profit or loss for that year. In preparing each of the Group and parent company financial statements, the Directors are required to:

·; select suitable accounting policies and then apply them consistently;

·; make judgments and estimates that are reasonable and prudent;

·; state whether they have been prepared in accordance with IFRSs as adopted by the EU; and

·; prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group and the parent company will continue in business.

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the parent company's transactions and disclose with reasonable accuracy at any time the financial position of the parent company and enable them to ensure that its financial statements comply with the Companies Act 2006. They have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Group and to prevent and detect fraud and other irregularities.

Report of the Directors

For the year ended 30 September 2010

The Directors of Lonrho Plc are pleased to submit their report, together with the audited financial statements for the year ended 30 September 2010.

The Company number is 2805337.

Principal activities

The Group has a diverse portfolio of investments across Sub-Saharan Africa in five key sectors: agribusiness, transportation, infrastructure, hotels and support services. In order to create maximum value for shareholders the management is implementing the investment strategy outlined in the Chairman's Statement.

Business review and development

The year has seen strong growth in the existing businesses and Lonrho made several complementary strategic acquisitions to further develop its core divisions. The Chairman's statement and the Chief Executive's review of operations contain information on developments during the year and key potential future developments.

The requirements of the enhanced business review in relation to strategy and progress thereon are contained in the Chairman's statement and the Chief Executive's review of operations. The principal risks and uncertainties relate to the revenue generation in the Group's businesses, which being located in Africa are subject to respective government policies, political stability and general economic conditions in the relevant country. Other risks to which the Group is exposed are the lack of suitably experienced management and exposure to foreign currency movements.

The Group monitors cash flow as its primary key performance indicator. Given the current global financial situation, the Directors are carefully monitoring cash resources within the Group and have instigated a number of initiatives to ensure funding will be available for planned projects. The operating cash outflow for the year to 30 September 2010 was £16.0 million (2009: £14.5 million). If such funding cannot be secured, the projects will be delayed or cancelled to ensure that the Group can manage its cash resources for the foreseeable future and hence the financial statements have been prepared on a going concern basis. The Group has raised additional capital since the year end by way of an issue of US$70 million (£44.3 million) guaranteed convertible bonds due 2015 (note 35). The primary use of the proceeds will be to restructure existing expensive debt and provide capital for the fish and agricultural division to maximise current opportunities.

The Group also uses a number of other key performance indicators which are measured at different tiers in the operation. At the top level the Group tracks turnover, gross margin, contribution to overheads, cash generation and performance against budget. The Group uses a number of specific, non-financial, key performance indicators at individual business levels. For example passenger numbers and load factors for Fly540, occupancy levels at Hotel Cardoso, and ship movements at Luba Freeport.

The Directors wish to mitigate risk by proper evaluation of every investment that is made and follow a risk analysis reporting procedure, which links into the Company's Corporate Governance procedures. The Group is continuing to strengthen its management team by the recruitment of highly experienced individuals.

Further information concerning the Group's policies and exposure to financial risk can be found in note 29 to the financial statements.

Post balance sheet eventsDetails of the significant events since the balance sheet date are contained in note 35 to the financial statements.

 DividendThe Directors do not recommend the payment of a dividend (2009: £nil).

Corporate governance

Compliancewith the Combined Code

The Directors recognise the value of the Combined Code on Corporate Governance and, whilst under AIM rules full compliance is not required, the Directors have considered the recommendations and applicability insofar as is practicable and appropriate for a public company of its size.

Board of Directors

The Board of Directors currently comprises four Executive Directors, one of whom is the Chairman, and three Non-Executive Directors. The Directors are of the opinion that the Board comprises a suitable balance to enable the recommendations of the Code to be implemented to an appropriate level. The Board, through the Chairman and Chief Executive Officer in particular, maintains regular contact with its advisors, public relations consultants and institutional investors in order to ensure that the Board develops an understanding of the views of the major shareholders of the Company.

The Board meets quarterly and is responsible for formulating, reviewing and approving the Company's strategy, financial activities and operating performance. Day to day management is devolved to the executive management who are charged with consulting the Board on all significant financial and operational matters. Consequently decisions are made promptly following consultation amongst the Directors and managers concerned where necessary and appropriate.

All necessary information is supplied to the Directors on a timely basis to enable them to discharge their duties effectively, and all Directors have access to independent professional advice, at the Company's expense, as and when required.

The Chairman is available to meet with institutional shareholders to discuss any issues and concerns regarding the Group's governance. The Non-Executive Directors may also attend meetings with major shareholders if requested.

The participation of both private and institutional investors at the Annual General Meeting is encouraged by the Board.

Internal controls

The Directors acknowledge their responsibility for the Company's and the Group's systems of internal control, which are designed to safeguard the assets of the Group and ensure the reliability of financial information for both internal use and external publication. Overall control is ensured by a regular detailed reporting system covering the state of the Group's financial affairs. The Board has implemented procedures for identifying, evaluating and managing the significant risks that face the Group.

Any system of internal control can provide only reasonable, and not absolute, assurance that material financial irregularities will be detected or that the risk of failure to achieve business objectives is eliminated.

Committees

The Board has devolved duties to the following committees:

Executive Committee

The Executive Committee ("the Committee") comprises the Executive Directors and senior managers including the Group's General Counsel, Group Financial Controller and the Business Development Manager. The Chairman of the Committee is David Lenigas or, in his absence, Geoffrey White. Its terms of reference indicate at least eight regular meetings per year. The Committee's primary responsibilities are to review the operating performance of each Group operating company, manage the Group's strategic planning process and corporate acquisition and disposal programme, monitor and approve capital expenditure and contracts entered into by the Group and to manage the Group's HR policies.

Audit Committee

The Audit Committee ("the Committee") comprises two Directors, both of whom are Non-Executive Directors. The current members are Jean Ellis (Chairperson), and Kiran Morzaria. Until his resignation, Donald Strang chaired the Committee with Jean Ellis and Geoffrey White as Committee members. Its terms of reference indicate at least three regular meetings per year. The Committee's primary responsibilities are to review the effectiveness of the Company's systems of internal control and financial reporting systems (including financial, operational, compliance and risk management), to review with the external auditors the nature, scope and results of their audit, to evaluate and select external auditors ensuring their independence and objectivity, and to review the Company's financial statements.

Remuneration Committee

The Remuneration Committee ("the Committee") comprises two Directors, both of whom are Non-Executive Directors. The current members are Ambassador Frances Cook (Chairperson), and Kiran Morzaria. Until his resignation, Donald Strang chaired the committee with Ambassador Frances Cook and David Armstrong as Committee members. Its terms of reference indicate at least two regular meetings per year. The Company's policy is to remunerate senior executives fairly in such a manner as to facilitate the recruitment, retention and motivation of staff. The Committee will agree with the Board a framework for the remuneration of the Chairman, the Executive Directors and the senior management of the Group.

The principal objective of the Committee is to ensure that members of the executive management of the Company are provided incentives to encourage enhanced performance and are, in a fair and responsible manner, rewarded for their individual contributions to the success of the Group bearing in mind inter alia the size, profitability, market capitalisation of the Company, its reputation and performance relative to other companies, the performance of individuals and the best interests of shareholders. Non-Executive Directors' fees are considered and agreed by the Board as a whole.

Nomination Committee

The Nomination Committee ("the Committee") comprises three Directors, two of whom are Non-Executive Directors. The current members are Jean Ellis (Chairperson), Ambassador Frances Cook and Geoffrey White. Its terms of reference indicate at least two regular meetings per year. The Committee's primary responsibility is to identify candidates to fill Board vacancies as and when they arise, give consideration to succession planning, review the structure, size and composition of the Board and to review the leadership needs of the organisation.

Corporate Social Responsibility ("CSR") Committee

The CSR Committee ("the Committee") comprises three Directors, two of whom are Non-Executive Directors. The current members are Ambassador Frances Cook (Chairperson), Jean Ellis and Geoffrey White, and the Committee is supported by Julia Lewis, Commercial Manager - Corporate Projects. The Committee meets at least twice a year and is responsible for reviewing and approving policies and initiatives relating to CSR matters.

Directors

The following Directors have held office during the year: Mr D A Lenigas (appointed 21 December 2005); Mr G T White (appointed 5 October 2007); Mr D J Armstrong (appointed 1 December 2008); Ms E K Priestley (appointed 24 February 2006); Ambassador F D Cook (appointed 23 October 2007); Mrs J M Ellis (appointed Finance Director 1 June 2007 and became a Non-Executive Director 1 December 2008); Mr D I G L Strang (appointed 19 December 2006 and resigned 30 June 2010); and Mr K C Morzaria (appointed 28 September 2010).

At the next Annual General Meeting, Mr D A Lenigas and Ambassador F D Cook will retire by rotation. Mr K C Morzaria, having been appointed since the last Annual General Meeting, will also retire. Being eligible, they will all offer themselves for re-election. Biographical details of all Directors are set out on pages 12 and 13.

Directors' share interests

The Directors at the year-end are set out below. All Directors served throughout the year unless otherwise indicated.

All of the above interests are recorded in the Company's Register of Directors' Share and Debenture Interests. No Director has a beneficial interest in the shares or debentures of any of the Company's subsidiary undertakings. There have been no changes in Directors' share interests since 30 September 2010.

Share options

Following shareholder approval at the Company's Annual General Meeting on 31st March 2010, unapproved share options were granted to Directors over ordinary shares, as set out below. These options are embodied in an individual contract between the Company and the individual and have been granted under The Lonrho Plc Unapproved Share Option Plan.

Insurance

The Company has offered Directors and Officers Liability insurance cover for Group Directors.

Substantial shareholdings

The Directors have been advised of the following shareholdings at 2 December 2010 in 3 per cent. or more of the Company's issued share capital:

Share price performance

Between 1 October 2009 and 30 September 2010 the share price in London varied between a high of 14.5p and a low of 7.7p and in Johannesburg a high of Rand 1.8 and a low of Rand 0.85. At 30 September 2010 the mid-market price of the shares was 11.0p in London and Rand 1.8 in Johannesburg. At 2 December 2010, the mid-market price of the shares was 16.5p in London and Rand 1.53 in Johannesburg.

Political and charitable donations

No political or charitable donations, save for those disclosed on pages 10 and 11, have been made by the Group during the year. The Group is involved in a number of charitable projects through its subsidiaries and investments, details of which are set out on pages 10 and 11.

Payment to suppliers

The Group does not follow any code or standard with regard to the payment of its suppliers. The Group's policy is to agree terms and conditions with suppliers in advance; payment is then made in accordance with the agreement provided the supplier has met the terms and conditions. Amounts due to suppliers at the balance sheet date are contained in note 27.

City Code on Takeovers and Mergers

The Panel on Takeovers and Mergers confirmed that, at the date the Listing Particulars were issued in May 1998, Lonrho was subject to the City Code on Takeovers and Mergers (the "Code"). The Directors believe that, so far as is practicable, they have operated and will continue to operate the Group so that it will continue to be subject to the Code.

Auditors

A resolution to re-appoint KPMG Audit Plc and to authorise the Directors to fix their remuneration will be proposed at the Annual General Meeting in accordance with section 489 of the Companies Act 2006.

The Directors who held office at the date of approval of this Directors' Report confirm that, so far as they are each aware, there is no relevant audit information of which the Company's Auditors are unaware; and each Director has taken all the steps that he/she ought to have taken as a Director to make himself/herself aware of any relevant audit information and to establish that the Company's Auditors are aware of that information.

By order of the BoardJ. Hughes

Company Secretary

3 December 2010

Consolidated income statement

For the year ended 30 September 2010

The notes on pages 25-65 are an integral part of these financial statements.

Consolidated and Company statements of comprehensive income

For the year ended 30 September 2010

Consolidated statement of changes in equity

For the year ended 30 September 2010

The Company had total equity brought forward of £93.9m (2009: £83.8m), and during the year issued shares of £37.0m (2009: £16.8m) with share options of £2.2m (2009: £0.3m) and a loss for the year of £10.1m (2009: £7.0m).

(¹) The transfer represents the amount of losses previously not allocated to non-controlling interests now allocated following additional capital contribution by the non-controlling interests.

Consolidated and Company statements of financial position

As at 30 September 2010

The notes on pages 25-65 are an integral part of these financial statements.

These financial statements were approved by the Board of Directors and authorised for issue on 3 December 2010. They were signed on its behalf by:

David Lenigas

Director

Consolidated and Company cash flow statements

For the year ended 30 September 2010

Notes to the financialstatements

1 Reporting entity

Lonrho Plc (the "Company") is a company incorporated and domiciled in the United Kingdom. The consolidated financial statements of the Company for the year ended 30 September 2010 comprise the Company and its subsidiaries (together referred to as the "Group") and the Group's interest in associates and jointly controlled entities.

The financial statements were authorised for issue by the Directors on 3 December 2010.

2 Basis of preparation

Statement of compliance

Both the parent Company and the consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union (Adopted IFRS). On publishing the parent Company financial statements here together with the Group financial statements, the Company is taking advantage of the exemption in section 408(4) of the Companies Act 2006 not to present its individual income statement and related notes that form a part of these approved financial statements. The loss of the Company is disclosed in note 23 to the accounts.

Going concern

Given the current global financial crisis, the Directors are carefully monitoring cash resources within the Group and have instigated a number of initiatives to ensure funding will be available for planned projects. As described in note 35, the Group has raised US$70 million (£44.3 million) in October 2010 through the issue of convertible bonds.

Following the capital raise, and after making due enquiries, the Directors have a reasonable expectation that the Group has adequate resources to continue operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the accounts.

Functional and presentation currency

The financial statements are presented in pounds sterling which is the Company's functional currency. All financial information presented has been rounded to the nearest £0.1 million.

Basis of measurement

The financial statements have been prepared on the historical cost basis except for the revaluation of certain long leasehold properties, and the recognition of available-for-sale financial assets at fair value.

The following standards and interpretations have been applied during the period:

Revised IAS 1 Presentation of Financial Statements (2007)

Revised IAS 1 introduces the term total comprehensive income, which represents changes in equity during a period other than those changes resulting from transactions with owners in their capacity as owners. Total comprehensive income may be presented in either a single statement of comprehensive income (effectively combining both the income statement and all non-owner change in a single statement), or in an income statement and a separate statement of comprehensive income.

Revised IFRS 3 Business combinations (2008)

Revised IFRS 3 incorporates the following changes that are relevant to the Group's operations:

·; The definition of a business has been broadened, which is likely to result in more acquisitions being treated as business combinations.

·; Contingent consideration will be measured at fair value, with subsequent changes therein recognised in the income statement.

·; Transaction costs, other than share and debt issue costs, will be expensed as incurred.

·; Any pre-existing interest in the acquiree will be measured at fair value with the gain or loss recognised in the income statement.

·; Any non-controlling (minority) interest will be measured at either fair value, or at its proportionate interest in the identifiable assets and liabilities of the acquiree, on a transaction-by-transaction basis.

Revised IFRS 3, which is mandatory in these consolidated financial statements, has been applied prospectively and therefore there is no impact on prior periods.

Amended IAS 27 Consolidated and separate financial statements (2008)

Amended IAS 27 requires accounting for changes in ownership interests by the Group in a subsidiary, while maintaining control, to be recognised as an equity transaction. When the Group loses control of a subsidiary, any interest retained in the former subsidiary will be measured at fair value with the gain or loss recognised in the income statement. The amendments to IAS 27, which are mandatory in these consolidated financial statements, have impacted minority interests in the consolidated financial statements.

The following standards have been effective during the year but are not deemed to have had a significant impact on the Group, other than minor disclosure effects where applicable.

·; IFRS 2 - Share based payments

·; IFRS 7 - Financial Information Disclosure

·; Amendments to IAS 32 - Financial Instruments Presentation

·; IFRIC 13 - Customer Loyalty Programmes

·; IFRIC 14 - IAS 19 - Limit of a Defined Benefit Asset

·; IFRIC 15 - Agreement of Construction Real Estate

·; IFRIC 16 - Hedges of a Net Investment in a Foreign Operation

At the date of authorisation of the financial statements, the following Standards and Interpretations are issued but not yet effective which have not been applied to these financial statements:

·; IFRIC 19 Extinguishing financial liabilities with equity instruments

·; Revised IAS 24 Related Party Disclosures

·; Amendments to IFRS 2 Group Cash-settled Share-based payment transactions

·; Amendment to IAS 32 Financial Instruments: Presentation: Classification of Rights Issues

·; Amendments to IFRIC 9 and IAS 39 Embedded Derivatives

·; Amendments to IFRS 5 - Non-current assets held for sale and discontinued operations

·; Amendment to IAS 7 - Classification of expenditures on unrecognised assets

·; Amendment to IAS 17 - Classification of leases of land and buildings

Use of estimates and judgements

The preparation of financial statements in conformity with Adopted IFRS requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

Estimates made by management in the application of Adopted IFRS that have significant effect on the financial statements with a significant risk of material adjustment in the next year are discussed in the following notes:

·; valuation of intangible assets (note 13)

·; valuation of associates and joint ventures (note 17)

·; valuation of biological assets (note 15)

Judgements made by management in the application of Adopted IFRS that have significant effect on the financial statements are:

·; the determination of the functional currencies of subsidiaries (see below)

·; the determination of the accounting treatment in respect of the acquisition of investments as either associates, joint ventures or subsidiaries (note 3(a)).

The timing of revenue recognition is not subject to significant uncertainty.

Luba Freeport Limited

Luba Freeport Limited, a Jersey registered company, uses US dollars as its functional currency as the significant transactions of the business are denominated in US dollars.

2 Significant accounting policies

The accounting policies set out below have been applied consistently to all periods presented in these consolidated financial statements and in preparing an opening adopted IFRS balance sheet as at 1 October 2006 for the purposes of the transition to Adopted IFRS. The accounting policies have been applied consistently by Group entities.

(a) Basis of consolidation

Subsidiaries

The consolidated financial statements incorporate the financial statements of Lonrho Plc and entities controlled by Lonrho Plc (its subsidiaries). Control is achieved where Lonrho Plc (the Company) has the power to govern the financial and operating policies of an investee entity so as to obtain benefits from its activities.

The portion of a non-controlling interest is stated at the non-controlling interest's proportion of the fair values of the assets and liabilities recognised. Subsequently, losses applicable to the non-controlling interest in excess of the non-controlling interest in the subsidiary's equity are allocated against the interests of the Group except to the extent that the non-controlling interest has a binding obligation and is able to make an additional investment to cover the losses. Future profits attributable to the non-controlling interest are not recognised until the unrecognised losses have been extinguished.

The results of entities acquired or disposed of during the year are included in the consolidated income statement from the effective date of acquisition or up to the effective date of disposal, as appropriate.

All intra-Group transactions, balances, income and expenses are eliminated on consolidation.

Associates and Joint Ventures

An associate is an entity in which the Group has the ability to exercise significant influence but not control over the financial and operating policies. A joint venture is an entity where the Group jointly controls its financial and operating policy together with other parties. Associates are accounted for using the equity method and are initially measured at cost as adjusted by post- acquisition changes in the Group's share of the net assets of the associate, less any impairment of the individual investments, from the date that significant influence commences until the date it ceases.

Losses of the associates in excess of the Group's interest in those associates are not recognised except to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of its investee. The Group's investment includes goodwill identified on acquisition, net of any impairment losses. Any excess of the cost of acquisition over the Group's share of the fair values of the identifiable net assets of the associate at the date of acquisition is recognised as goodwill. Any deficiency of the cost of acquisition below the Group's share of the fair values of the identifiable net assets of the associate at the date of acquisition (i.e. discount on acquisition) is credited to the income statement in the period of acquisition.

The Company records interests in associate and joint ventures initially at cost and thereafter at cost less provisions for impairment.

Business combinations

The acquisition of subsidiaries and businesses is accounted for using the purchase method. The cost of the acquisition is measured at the aggregate of the fair values, at the date of exchange, of assets given, liabilities incurred or assumed, and equity instruments issued by the Group in exchange for control of the acquiree. The acquiree's identifiable assets, liabilities and contingent liabilities that meet the conditions for recognition under IFRS 3 are recognised at their fair values at the acquisition date, except for non-current assets that are classified as held for sale in accordance with IFRS 5, which are recognised and measured at fair value less costs to sell.

Goodwill arising on acquisition is recognised as an asset and initially measured at cost, being the excess of the fair value of the consideration over the Group's interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised.

If, after reassessment, the Group's interest in the net fair value of the acquiree's identifiable assets, liabilities and contingent liabilities exceeds the fair value of the consideration, the excess is recognised immediately in the income statement. The interest of non-controlling interests in the acquirer is initially measured at the non-controlling interest's proportion of the net fair value of the assets, liabilities and contingent liabilities recognised.

 (b) Intangible assets

Goodwill

Goodwill arising on consolidation is recognised as an asset.

Following initial recognition, goodwill is subject to impairment reviews, at least annually, and measured at cost less accumulated impairment losses. The recoverable amount is estimated at each balance sheet date. Any impairment loss is recognised immediately in the income statement and is not subsequently reversed when the carrying amount of the asset exceeds its recoverable amount.

Any impairment losses recognised in respect of cash generating units are allocated first to reduce the carrying amount of any goodwill allocated to cash-generating units (groups of units) and then, to reduce the carrying amount of other assets in the unit (groups of units) on a pro rata basis.

On disposal of a subsidiary, the attributable amount of goodwill is included in the determination of the gain or loss on disposal. Goodwill arising on acquisitions before the date of transition to adopted IFRS has been retained at the previous UK GAAP amounts, after being tested for impairment at that date.

Other intangible assets

Other intangible assets are measured initially at cost and are amortised on a straight-line basis over their estimated useful lives. The carrying amount is reduced by any provision for impairment where necessary.

On a business combination, as well as recording separable intangible assets already recognised in the balance sheet of the acquired entity at their fair value, identifiable intangible assets that are separable or arise from contractual or other legal rights are also included in the acquisition balance sheet at fair value.

Amortisation on intangible assets is charged on a straight line basis over their useful economic life, on the following basis:

(c) Foreign currencies

The individual financial statements of each Group company are presented in the currency of the primary economic environment in which it operates (its functional currency). For the purpose of the consolidated financial statements, the results and financial position of each Group company are expressed in pounds sterling, which is the functional currency of the Company, and the presentational currency for the consolidated financial statements.

In preparing the financial statements of the individual companies, transactions denominated in foreign currencies are translated into the respective functional currency of the Group entities using the exchange rates prevailing at the dates of transactions. Non-monetary assets and liabilities are translated at the historic rate. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the rates of exchange ruling at the balance sheet date. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to the functional currency at the exchange rate at the date that the fair value was determined.

Exchange differences arising on the settlement of monetary items, and on the retranslation of monetary items, are included in the income statement for the period. Exchange differences arising on the retranslation of non-monetary items carried at fair value in respect of which gains and losses are recognised directly in equity are also recognised directly in equity.

For the purpose of presenting consolidated financial statements, the assets and liabilities of the Group's foreign operations are translated at exchange rates prevailing at the balance sheet date. Income and expense are translated at the average exchange rates for the period, unless exchange rates fluctuate significantly during that period, in which case weighted average rates are used. Exchange differences arising, if any, are classified in equity and are transferred to the Group's foreign currency translation reserve within equity. Such translation is recognised as income or as expense in the period in which the operation is disposed of.

All foreign exchange gains or losses that are reflected in the income statement are presented within financing income or expense.

(d) Taxation

The tax expense represents the sum of current tax and deferred tax.

Current taxation

Current tax is based on taxable profit for the period. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Group's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date.

Deferred taxation

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

Deferred tax liabilities are recognised for taxable temporary differences arising on the investments in subsidiaries and associates, except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future.

The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax is calculated at the tax rates substantially enacted at the balance sheet date, that apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited to equity, in which case the deferred tax is also dealt with in equity.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax assets and liabilities on a net basis.

(e) Available for sale financial assets

The Group's investments in equity securities that are not associates or joint ventures are classified as available-for-sale financial assets. Subsequent to initial recognition, they are measured at fair value and changes therein, other than impairment losses (see below), are recognised directly in equity. When an investment is de-recognised, the cumulative gain or loss in equity is transferred to the income statement.

Impairment

A financial asset is assessed at each reporting date to determine whether there is any objective evidence that it is impaired.

A financial asset is considered to be impaired if objective evidence indicates that one or more events have had a negative effect on the estimated future cash flows of that asset.

An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount, and the present value of the estimated future cash flows discounted at the original effective interest rate. An impairment loss in respect of an available-for-sale financial asset is calculated by reference to its fair value.

All impairment losses are recognised in the income statement. Any cumulative loss in respect of an available-for-sale financial asset recognised previously in equity is transferred to the income statement.

An impairment loss is reversed if the reversal can be related objectively to an event occurring after the impairment loss was recognised. For financial assets measured at amortised cost, the reversal is recognised in the income statement. For available-for sale financial assets that are equity securities, the reversal is recognised directly in equity.

(f) Property, plant and equipment

Long leasehold land and buildings are stated in the balance sheet at their revalued amounts, being the fair value at the date of revaluation, less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are performed with sufficient regularity such that the carrying amount does not differ materially from that which would be determined using fair values at the balance sheet date.

Any revaluation increase arising on the revaluation of such land and buildings is credited to the revaluation reserve, except to the extent that it reverses a revaluation decrease for the same asset previously recognised as an expense, in which case the increase is credited to the income statement to the extent of the decrease previously charged. A decrease in carrying amount arising on the revaluation of such land and building is charged as an expense to the extent that it exceeds the balance if any, held in the revaluation reserve relating to a previous revaluation of that asset. Depreciation on revalued buildings is charged to the income statement. On subsequent sale or retirement of a revalued property, the attributable revaluation surplus remaining is transferred directly to retained earnings.

All other assets are stated at historical cost less accumulated depreciation and accumulated impairment losses.

Depreciation is charged so as to write off the cost or valuation of assets (less estimated residual values updated annually), other than long leasehold land, over their estimated useful lives, on the following basis:

The gain or loss arising on the disposal of an asset is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in the income statement for the period.

Assets held under finance leases are depreciated over their expected useful lives on the same basis as owned assets, or where shorter, over the relevant lease term.

In respect of aircraft, subsequent costs incurred which lend enhancement to future periods such as long term scheduled maintenance and major overhaul of aircraft and engines are capitalised and amortised over the length of the period benefiting from those enhancements. All other costs relating to maintenance are charged to the income statement as incurred.

(g) Biological assets

Certain Group subsidiaries involved in the production of fresh produce recognize biological assets, which includes agricultural produce due for harvest on fruit plantations. Biological assets are stated at fair value less estimated point of sale costs, with any resultant gain or loss recognized in the income statement. The valuation of the fruit plantations is based on discounted cashflow models whereby the fair value of the assets is calculated using cashflows for continuous operations taking into account growth and yield potential.

When the fruit is harvested, it will be transferred to inventory and accounted for under IAS 2 - Inventory.

(h) Impairment of assets excluding goodwill, inventories and deferred tax assets

At each balance sheet date, the Group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of any impairment loss. Where the asset does not generate cash flows that are independent from other assets, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs. Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount.

An impairment loss is recognised as an expense immediately, unless the relevant asset is carried at a revalued amount in which case the impairment loss is treated as a revaluation decrease.

Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years.

A reversal of an impairment loss is recognised as income immediately, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation increase.

(h) Financial instruments

Financial assets and financial liabilities are recognised in the Group's balance sheet when the Group becomes a party to the contractual provisions of the instrument.

Cash and cash equivalents

Cash and cash equivalents comprise cash in hand and demand deposits and other short term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value. Bank overdrafts that are repayable on demand and form an integral part of the Group's cash management are included as a component of cash and cash equivalents for the purpose of the statement of cash flows.

Trade receivables

Trade receivables are measured at initial recognition at fair value and are subsequently measured at amortised cost using the effective interest rate method. Appropriate allowances for estimated recoverable amounts are recognised in the income statement when there is objective evidence the asset is impaired.

Trade payables

Trade payables are initially measured at fair value and are subsequently measured at amortised cost using the effective interest rate method.

Financial liabilities

Financial liabilities are classified according to the substance of the contractual arrangements entered into.

Bank borrowings

Interest bearing bank loans and overdrafts are recorded at the proceeds received, net of direct issue costs.

Equity instruments

Equity instruments issued by the Company are recorded at the proceeds received, net of direct issue costs.

Capital management

The Board's policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. The Board of Directors monitors the return on capital, which the Group defines as net operating income divided by total shareholders' equity, excluding minority interests.

(i) Inventories

Inventories are stated at the lower of cost and net realisable value. Cost comprises direct materials and where applicable direct expenditure and attributable overheads that have been incurred in bringing the inventories to their present location and condition. Net realisable value represents the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

(j) Share based payments

The Group provides benefits to certain employees, including senior executives, in the form of share based payments, whereby employees render services in exchange for shares or rights over shares (equity-settled transactions). The cost of these equity-settled transactions with employees is measured by reference to the fair value of the equity instruments at the date at which they are granted. The fair value is determined by using a Black-Scholes model. The dilutive effect, if any, of outstanding options is reflected as additional share dilution in the computation of earnings per share.

(k) Interest-bearing borrowings

Interest-bearing borrowings are recognised initially at fair value less attributable transaction costs. Subsequent to initial recognition, interest-bearing borrowings are stated at amortised cost with any difference between cost and redemption value being recognised in the income statement over the period of the borrowings on an effective interest basis.

(l) Dividends

Interim dividends are recognised when paid and final dividends are recognised as liabilities in the period in which they are approved by shareholders.

(m) Provisions

A provision is recognised in the balance sheet when the Group has a present legal or constructive obligation as a result of a past event, and it is probable that an outflow of economic benefits will be required to settle the obligation. If the effect is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability.

(n) Revenue recognition

Revenue, for the other major segments not detailed below, is derived from the sale of goods and services and is measured at the fair value of consideration received or receivable, after deducting discounts, volume rebates, value-added tax and other sales taxes. A sale of goods and services is recognised when recovery of the consideration is probable, there is no continuing management involvement with the goods and services and the amount of revenue can be measured reliably.

A sale of goods is recognised when the significant risks and rewards of ownership have passed to the buyer, the associated costs and possible return of goods can be estimated reliably. This is when title and insurance risk have passed to the customer and the goods have been delivered to a contractually agreed location.

A sale of services is recognised when the service has been rendered.

Aircraft division

Revenue for the aircraft division comprises the invoiced value of airline services, net of passenger taxes, discounts, plus ancillary revenue. Revenue from the sale of flight seats (passenger revenue) is recognised in the period in which the service is provided. Unearned revenue represents flight seats sold but not yet flown and is included within deferred income.

Luba Freeport

Revenue from port activities represents the income earned from the provision of port facilities, which comprise cargo handling, towage, pilotage, conservancy services and port related rental income. Such revenue is recorded once the service has been provided.

(o) Leases

Leases are classified according to the substance of the transaction. A lease that transfers substantially all the risks and rewards of ownership to the lessee is classified as a finance lease. All other leases are classified as operating leases.

Finance leases

Finance leases are capitalised in the balance sheet at their fair value or, if lower, at the present value of the minimum lease payments, each determined at the inception of the lease. The corresponding liability is shown as a finance lease obligation to the lessor. Leasing repayments comprise both a capital and a finance element. The finance element is written off to the income statement so as to produce an approximately constant periodic rate of charge on the outstanding obligation.

Operating leases

Operating lease rentals are charged to the income statement on a straight line basis over the period of the lease.

(q) Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.

Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.

All other borrowing costs are recognised in the income statement in the period in which they are incurred.

(r) Loss per share

Basic loss per share is calculated based on the weighted average number of ordinary shares outstanding during the period. Diluted loss per share is based upon the weighted average number of shares in issue throughout the year, adjusted for the dilutive effect of potential ordinary shares. The only potential dilutive ordinary shares in issue are employee share options.

(s) Reportable Segments

Segments are determined to be the lowest operational segment that the Chief Operating Decision Maker ("CODM") evaluates the result of the segment and allocates resources to that segment. This is based on the Group's internal organization and the financial information provided to the CODM.

(t) Assets and liabilities classified as held for sale

Non-current assets (or disposal groups comprising assets and liabilities) that are expected to be recovered primarily through sale rather than through continuing use are classified as held for sale. Immediately before classification as held for sale, the assets (or components of a disposal group) are remeasured in accordance with the Group's accounting policies. Thereafter generally the assets (or disposal group) are measured at the lower of their carrying amount and fair value less cost to sell. Any impairment loss on a disposal group first is allocated to goodwill, and then to remaining assets and liabilities on a pro rata basis, except that no loss is allocated to inventories, financial assets and deferred tax assets, which continue to be measured in accordance with the Group's accounting policies. Impairment losses on initial classification as held for sale and subsequent gains or losses on re-measurement are recognised in the income statement. Gains are not recognised in excess of any cumulative impairment loss.

3 Segment reporting

The "Chief Operating Decision Maker" (CODM) is deemed to be the Executive Committee who monitor the results of the business segments to assess performance and make decisions about the allocation of revenues. Segment performance is evaluated on both revenue and operating profit/(loss).

Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items comprise mainly interest earning assets, interest-bearing loans, borrowings and expenses, and corporate assets and expenses.

Segment capital expenditure is the total cost incurred during the period to acquire segment assets that are expected to be used for more than one period.

There is no inter-segment revenue.

Business segments

The Group has five continuing reportable segments which are organized around the basis of products and services which they provide:

·; Agribusiness

·; Infrastructure

·; Transportation

·; Support services

·; Hotels

·; Cargo and shipping (discontinued)

The Group has not aggregated any operating segment in arriving at this analysis.

Geographical analysis

All of the segments operate in various parts of Africa.

Business segments

Business segments

Geographical analysis

4 Revenue

5 Group net operating costs

The costs above include the following relating to discontinued operations:

Auditors remuneration

6 Acquisition of subsidiaries

Trak Auto

On 8 April 2010, the Group acquired 100% of the issued share capital of Trak Auto Lda for an initial consideration of US$2 million (£1.3 million). Further payments of US$1 million (£0.6 million) a year for three years will be payable upon the meeting of growth targets. Trak Auto Lda holds the exclusive John Deere and Komatsu dealership agreements for Mozambique and is involved in the sale and after-sale service of these vehicles. 

The transaction has been accounted for by the purchase method of accounting. The fair value of the net assets at 8 April 2010 is set out below:

The transaction costs incurred to acquire the company were £0.1 million and have been expensed in the income statement.

The goodwill arising on the acquisition of Trak Auto Lda is attributable to the anticipated profitability of the distribution of the company's services and products to new customers.

Trak Auto Lda contributed £3.5 million to revenue and £0.8 million profit to the Group's profit before tax for the period between the date of acquisition and the reporting date.

Oceanfresh

On 7 June 2010, the Group acquired 51.0% of the issued share capital of Oceanfresh Limited for a consideration of R3.8 million (£0.3 million) including R0.8 million (£0.1 million) related to the subscription of shares with the proceeds retained in Oceanfresh. An additional working capital injection of R7.7 million (£0.7 million) was provided by way of an interest bearing loan. Oceanfresh is a supplier of frozen fish and crustaceans from Mozambique with customers across South Africa and also in the United States.

The transaction has been accounted for by the purchase method of accounting. The fair value of the net assets at 7 June 2010 is set out below:

The transaction costs incurred to acquire the company were £0.1 million and have been expensed in the income statement.

The goodwill arising on the acquisition of Oceanfresh Limited is attributable to the anticipated profitability of the distribution of the company's services and products to new customers.

Oceanfresh Limited contributed £2.3 million to revenue and £0.2 million loss to the Group's profit before tax for the period between the date of acquisition and the reporting date.

7 Discontinued operations

SAILS

Following a review by the Board in September 2008, the Group decided not to continue to support SAILS. The Board began actively marketing the company for sale prior to the 2008 year end. Unfortunately this proved unsuccessful and the company was placed into liquidation on 15 October 2008. No cash flow relating to this business arose in the year and none is anticipated in the future.

* In the period to liquidation

8 Staff numbers and costs

The aggregate remuneration comprised (including Executive Directors):

REMUNERATION OF DIRECTORS

Detailed disclosure of remuneration of Directors is given in note 33.

9 Net finance income

The foreign exchange gain of £8.5 million (2009: £6.4 million) has arisen on the translation of intercompany balances.

10 Income tax expense

UK Corporation tax is calculated at a rate of 28% (2009: 28%) of the estimated assessable loss for the year. Taxation for other jurisdictions is calculated at the rates prevailing in the respective jurisdictions.

11 Earnings per share

The calculation of the basic and diluted profit/(loss) per share is based on the following data: