A seven fold rise in a company's share price is not to be scoffed at. So, with the shares at 18p, it's time to take some profits on our buy tip on Africa-focused conglomerate Lonrho – but just enough to cover buying costs; then let the remainder run for nothing. And, for shareholders who have missed out on this growth story, the shares still look worth buying.
Lonrho continues to make excellent progress across its diverse portfolio. Group turnover in the quarter to end December increased by 21 per cent over the corresponding quarter and chairman David Lenigas continues to see "strong, growing market demand for each division".
One of the strongest performers was Oceanfresh, the seafood production company in Mozambique. The division is building a strong market domestically and abroad, particularly in the US where it has secured a deal to supply Costco, and increased sales by 67 per cent quarter on quarter. Airline operations are also performing well, and will provide a first contribution this quarter from Fly540 Angola, the latest hub to be added to the group's airline. The Luba freeport in Equatorial Guinea is also steadily growing revenue as West African oil and gas activity continues to builds up.
