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Lonrho advances towards profit

TIP UPDATE: One of our best performing tips this year, with a gain of over 200 per cent
April 28, 2009
by LiM

Lonrho continues to make good progress developing its pan-African investment portfolio. Second-quarter sales at Rollex, the agricultural logistics business, were up 89 per cent year-on-year, and the John Deere tractor business is set to open its Angola branch in July. Passenger numbers continue to grow at airline Fly540 and 540 Angola is expected to begin operations in the next quarter, to be followed soon after by 540 Ghana. The group is resisting attempts by AMB Capital, a fellow shareholder in Zimbabwe-focused investment company Lonzim (in which Lonrho holds a 24.25 per cent shareholding), to break up Lonzim and return cash to investors.

IC TIP: Buy at 7.9p

The results for the second quarter to 31 March 2009 showed revenues of £19.6m, 61 per cent higher on a like-for-like basis against the same period last year. The group expects to announce a pre-tax profit when it releases half-year results in May.

What we said:

When: 6 March 2009

Price: 2.42p

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