Growth in agribusiness underpins strong revenue rise at Lonrho

Africa-focused investment company Lonrho has unveiled strong revenue growth for 2012 and a 32 per cent rise in revenues for the final quarter, underpinned by solid growth in its agribusiness division.

Africa-focused investment company Lonrho has unveiled strong revenue growth for 2012 and a 32 per cent rise in revenues for the final quarter, underpinned by solid growth in its agribusiness division.

Revenue from core operating divisions in the fourth quarter was £46.0m, compared with £34.8m for the three months to December 31st 2011.

Agribusiness accounted for more than 65% of Lonrho's revenue from core operating divisions. At the end of 2012, the group said it had completed the development of a vertically integrated, cold chain logistics and processing infrastructure.

The group said that its 2013 crop is expected to be three times the size of the 2012 crop as the plantation matures. The plantation is expected to reach full maturity in 2014 and is forecast to yield 4.0m kilograms of fruit per year thereafter.

Within the infratructure division, which grew 24.5% to £123.6m over the year, the group said that the oil services logistics port, Luba Freeport, continued to "perform well" adding that it had seen "a healthy increase" in vessel movements in the fourth quarter of the year compared to the prior year.

On an adjusted like-for-like basis at constant currency, revenue increased across all divisions, with an overall increase of 28%.

For the full year to December 31st 2012, reported revenue was up 21.8% compared to the 15 months to December 31st 2011, from £152.9m to £186.3m, a like-for-like increase at constant currency of 23.6%.

The group's total reported gross margin increased from 26.9% to 28.9%, comparing the 12 month period with the prior 15 months.

Geoffrey White, Chief Executive Officer of Lonhro, commented: "2012 was a very significant year for Lonrho and saw the conclusion, by the end of the year, of the transition of Lonrho into a company that has successfully completed the establishment of its core business units and is now in a strong position to build on the opportunities in Africa.

"This transition took longer to complete than expected, and there were some delays in our 2012 plans that caused potential 2012 business to move to 2013. The majority of these delays have now played out and the group is well positioned in 2013 to deliver positive results for shareholders Lonrho remains solely focused on Africa and being aligned with economic development across the Continent."

Lonhro's share price was up 24% to 6.20p at 09:41 on Thursday.

MF

Recommended

Avoid easyJet shares – there are better airlines to invest in
Share tips

Avoid easyJet shares – there are better airlines to invest in

EasyJet used to be one of Europe’s most impressive airlines. But now it is facing challenges on all fronts and losing out to the competition. Rupert …
16 May 2022
Britain’s ten most-hated shares – w/e 13 May
Stocks and shares

Britain’s ten most-hated shares – w/e 13 May

Rupert Hargreaves looks at Britain's ten-most hated shares, and what short-sellers are looking right now.
16 May 2022
Anna Macdonald and Mikhail Zverev: Investing in innovative new frontiers
Investment strategy

Anna Macdonald and Mikhail Zverev: Investing in innovative new frontiers

Merryn talks to Anna Macdonald and Mikhail Zverev of Amati about investing in growth-focused innovation in the teeth of a tech-stock selloff, and the …
12 May 2022
BT is making progress and the dividend is back – but is it time to buy yet?
Share tips

BT is making progress and the dividend is back – but is it time to buy yet?

Investors in telecoms giant BT have seen dismal returns over the last 15 years. But there are signs that it is starting to turn things around, says Ru…
12 May 2022

Most Popular

Get set for another debt binge as real interest rates fall
UK Economy

Get set for another debt binge as real interest rates fall

Despite the fuss about rising interest rates, they’re falling in real terms. That will blow up a wild bubble, says Matthew Lynn.
15 May 2022
High inflation will fade – here’s why
Inflation

High inflation will fade – here’s why

Many people expect high inflation to persist for a long time. But that might not be true, says Max King. Inflation may fall faster than expected – and…
13 May 2022
What the Ukraine crisis might mean for ESG investing
Advertisement Feature

What the Ukraine crisis might mean for ESG investing

The Ukraine crisis has brought many of the issues around ESG investing into sharper focus. Where does the sector go from here?
3 May 2022