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

The top funds to invest in
Funds

The top funds to invest in

As market volatility and recessionary fears continue, here are the most popular funds, stocks and trusts investors are putting their money into accord…
2 Feb 2023
The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves takes a look at the companies with the highest dividend yields in the UK’s blue-chip index
23 Jan 2023
The top ten dividend stocks in the FTSE 250
Share tips

The top ten dividend stocks in the FTSE 250

The average FTSE 250 dividend yield is around 4%, but many stocks yield much more. Rupert Hargreaves picks the best FTSE 250 stocks for income investo…
17 Jan 2023
Investing trends to watch out for in 2023: what analysts say
Investment strategy

Investing trends to watch out for in 2023: what analysts say

What are sensible strategies for high inflationary times? We ask analysts to find out.
22 Dec 2022

Most Popular

NS&I brings back one-year fixed bonds with highest rates since 2010
Personal finance

NS&I brings back one-year fixed bonds with highest rates since 2010

NS&I’s one-year fixed bonds are back on sale after being pulled off the market in 2019 - but is the rate any good?
1 Feb 2023
Bank of England raises interest rate to 4%
Economy

Bank of England raises interest rate to 4%

The Bank of England raised rates by 0.5%, marking the base rate’s 10th consecutive increase.
2 Feb 2023
When will interest rates go up?
UK Economy

When will interest rates go up?

Interest rates are now at 4%, and they could rise further in the months ahead.
3 Feb 2023