Lonrho Regulatory News (LONR)

29 Jun 2005 07:00

Lonrho Africa PLC29 June 2005 FOR IMMEDIATE RELEASE Lonrho Africa Plc Interim Results for the six months to 31 March 2005 Hotels Kenya The disposal of the Group's 100 per cent. interest in Lonrho Hotels Kenya BV(''LHKBV'') to a subsidiary of Kingdom Hotels Investments (''KHI'') for a cashconsideration of £17.05 million, of which £15.95 million was payable oncompletion and the balance over the next 18 months subject to any necessaryadjustment for warranty claims and an adjustment for working capital, wascompleted on 12th May 2005. LHKBV is the owner of Lonrho Hotels Kenya Limited (''LHK'') in Kenya which ownsThe Norfolk Hotel, The Mara Safari Club, 75 per cent. of the Mount Kenya SafariClub, and 59.67 per cent. of The Aberdare Country Club and The Ark. Mozambique The Cardoso Hotel in Mozambique made a loss during the six months of which theGroup's share amounted to £73,000 (2004: £86,000 loss). Costs, headcount andcapital expenditure continue to be strictly controlled. The Company is currentlyin discussions to sell the Hotel for approximately £1.5 million. Property The sale of a major part of the remaining agricultural land in Kenya, which wassigned in September 2003, was completed on 17 June 2005 for approximately £1million. Efforts to dispose of the one remaining South African industrial propertycontinue and this should be finalised later this year for approximately £0.2million. Demerger/Capital Reduction On 22 April 2005 the entire issued share capital of Lonrho Africa Trade &Finance Limited was transferred by Lonrho Africa Plc by means of a Courtapproved Scheme of Arrangement to Castle Acquisitions Plc in consideration ofthe allotment of new Castle Acqusitions Plc shares to qualifying shareholders. The share capital of the Company was also reduced pursuant to a Court approvedreduction of capital under which the nominal value of each Lonrho Africa Plcshare was reduced from 20p to 1p. This resulted in approximately £29.94 millionbeing released to the profit and loss account of the Company thereby eliminatingthe deficit on the profit and loss account and creating a surplus sufficient forthe purposes of the Scheme of Arrangement. Strategy The Board of Lonrho Africa continues to follow its strategy of disposing of itsresidual assets in Africa, including its interest in Hotel Cardoso SARL inMozambique. Consistent with previous policy, it is the Board's current intentionto continue to seek opportunities to maximise shareholder value. CHB Mills Chairman 28th June 2005 For further information please contact: Nadja Vetter/Emma Consett, Cardew Group +44 (0)20 7930 0777 Basis of preparation of the interim financial information The interim financial information has been prepared on the same basis and usingthe same accounting policies as were applied in drawing up the statutoryaccounts for the year ended 30st September 2004. The discontinued operationsconstitute the results of the Kenyan hotels, the Group's interest in which wassold in May 2005. The figures for the six months to 31st March 2005 and 31stMarch 2004 are unaudited. The figures for the year ended 30th September 2004 donot constitute the statutory accounts for that year which have been filed withthe registrar of companies and on which the auditors' report was unqualifiedwithout any statement under Section 237 of the Companies Act 1985. Consolidated profit and loss account 6 months 6 months 6 months 6 months to 31.3.05 to 31.3.05 6 months to 31.3.04 to 31.3.04 6 months 12 months Continuing Discontinued to 31.3.05 Continuing Discontinued to 31.3.04 to 30.9.04 operations operations Total operations operations Total Total Note £m £m £m £m £m £m £m TurnoverGroup 0.5 4.1 4.6 0.5 4.7 5.2 9.9Joint ventures - - - - 0.1 0.1 0.2 0.5 4.1 4.6 0.5 4.8 5.3 10.1Group net operating costs (1.0) (3.6) (4.6) (1.0) (4.8) (5.8) (10.5)Operating (loss)/profitGroup (0.5) 0.5 - (0.5) (0.1) (0.6) (0.6)Joint venture - - - - - - - (0.5) 0.5 - (0.5) (0.1) (0.6) (0.6) Non-operating exceptional items 2 - 0.1 0.1 - (0.5) (0.5) 4.6Net interest receivable/(payable) 0.1 - 0.1 (0.1) - (0.1) -(Loss)/profit before taxation (0.4) 0.6 0.2 (0.6) (0.6) (1.2) 4.0 Taxation - (0.2) (0.2) - - - (0.3)(Loss)/profit after taxation (0.4) 0.4 - (0.6) (0.6) (1.2) 3.7 Minority interests 0.1 - 0.1 0.1 0.1 0.2 0.3Retained (loss)/profit (0.3) 0.4 0.1 (0.5) (0.5) (1.0) 4.0 Profit/(loss) per share 0.1p (0.6)p 2.5pLoss per share before exceptional items (0.0)p (0.3)p (0.4)p Earnings per share Profit per share of 0.1p (2004 - (0.6p)) has been calculated using the profitafter taxation and minority interest of £0.1 million (2004 - £(1.0) million)applied to 157,572,088 shares.Loss per share excluding exceptional items of (0.0)p (2004 - (0.3)p) has beencalculated on the loss after taxation and minority interest but before exceptional items applied to 157,572,088 shares. Note: The figures for the six months ended 31 March 2004 have been restated to reflect operations that have been discontinued since 31 March 2004. Group balance sheet 31st March 31st March 30th September 2005 2004 2004 £m £m £mFixed assetsTangible 17.5 23.8 17.0Investments: Joint ventures - 0.2 - 17.5 24.0 17.0Current assetsStocks 0.6 1.9 1.2Debtors Amounts falling due within one year 3.7 3.9 3.3 Amounts falling due after one year - 0.4 - 3.7 4.3 3.3Cash at bank 6.9 1.3 6.0 11.2 7.5 10.5Creditors: amounts falling due within one year Overdrafts - (6.2) - Other creditors (2.3) (2.8) (3.0) Net current assets/(liabilities) 8.9 (1.5) 7.5 Total assets less current liabilities 26.4 22.5 24.5 Provisions for liabilities and charges (3.6) (3.8) (2.5)Net assets 22.8 18.7 22.0 Capital and reservesCalled up share capital 31.5 31.5 31.5Merger reserve 96.1 96.1 96.1Revaluation reserve 7.7 11.6 7.4Profit and loss account (115.2) (124.2) (115.6) Shareholders' funds (equity) 20.1 15.0 19.4Minority interests (equity) 2.7 3.7 2.6 22.8 18.7 22.0 Consolidated cash flow statement 6 months 6 months 12 months to 31.3.05 to 31.3.04 to 30.9.04 Note £m £m £m £m £m £mNet cash flow from operating activities- continuing operations (0.9) (0.9) 0.2- discontinued operations 1.0 (0.2) (1.1) 1 0.1 (1.1) (0.9)Return on investments and servicing of finance- interest received 0.1 - -- interest paid - (0.2) (0.2) Tax paid - overseas (0.5) - (0.1) Net cash outflow before investing activities (0.3) (1.3) (1.2) Net capital receipts/(payments) 1 1.2 - (0.2) Net proceeds from disposal of subsidiaries 1 - (0.2) 10.8Increase/(decrease) in cash 0.9 (1.5) 9.4 Movement in net cash 1st October Net cash Exchange 31st March 2004 flows movement 2005 £m £m £m £m Cash 6.0 0.9 - 6.9 Statement of total recognised gains and losses 6 months 6 months 12 months to 31.3.05 to 31.3.04 to 30.9.04 £m £m £m Profit/(loss) for the period 0.1 (1.0) 4.0Exchange adjustments 0.6 (2.4) (3.0)Total recognised gains and losses in the period 0.7 (3.4) 1.0 Reconciliation of movements in shareholders' funds 6 months 6 months 12 months to 31.3.05 to 31.3.04 to 30.9.04 £m £m £m Recognised gains/(losses) relating to the period 0.7 (3.4) 1.0At beginning of period 19.4 18.4 18.4At end of period 20.1 15.0 19.4 Historical cost profits and losses 6 months 6 months 12 months to 31.3.05 to 31.3.04 to 30.9.04 £m £m £mHistorical cost profit/(loss) before taxationReported profit/(loss) before taxation 0.2 (1.2) 4.0Difference between historical cost depreciation charge and the actual depreciation chargecalculated on the revalued amount 0.1 0.1 0.1Realisation of property revaluation gains - - 0.2 Historical cost profit/(loss) before taxation 0.3 (1.1) 4.3Historical cost profit/(loss) after taxation and minority interests 0.2 (0.9) 4.3 Notes to the half year accounts 1. Consolidated cash flow statement 6 months 6 months 6 months 6 months to 31.3.05 to 31.3.05 6 months to 31.3.04 to 31.3.04 6 months 12 months Continuing Discontinued to 31.3.05 Continuing Discontinued to 31.3.04 to 30.9.04 operations operations Total operations operations Total Total £m £m £m £m £m £m £m Net cashflow from operating activitiesOperating (loss)/profit (0.5) 0.5 - (0.5) (0.1) (0.6) (0.6)Depreciation charge 0.1 0.2 0.3 0.1 0.4 0.5 0.8Current cost of servicing pension - - - - - - 0.1Decrease/(increase) in stocks - 0.1 0.1 - (0.1) (0.1) (0.1)(Increase)/decrease in debtors (0.5) 0.5 - (0.3) (0.1) (0.4) (0.9)Decrease in creditors - (0.3) (0.3) (0.2) (0.3) (0.5) (0.2) Net cash (outflow)/inflow fromoperating activities (0.9) 1.0 0.1 (0.9) (0.2) (1.1) (0.9) 6 months to 6 months to 12 months to 31.3.05 31.3.04 30.9.04 £m £m £mNet capital receiptsPurchase of tangible fixed assets (0.1) - (0.2)Sale of property in South Africa 1.3 - - 1.2 - (0.2) 6 months to 6 months to 12 months to 31.3.05 31.3.04 30.9.04 £m £m £mNet proceeds from disposal of subsidiariesDisposal and closure costs - (0.2) 0.1Sale of subsidiaries - - 10.5Sale of joint venture - - 0.2 - (0.2) 10.8 6 months to 6 months to 12 months to 31.3.05 31.3.04 30.9.04 £m £m £mReconciliation of net cash flow to movement in net cashIncrease/(decrease) in cash in the period 0.9 (1.5) 9.4Exchange rate movements - (0.2) (0.2)Movement in net cash 0.9 (1.7) 9.2Balance at beginning of period 6.0 (3.2) (3.2)Net cash 6.9 (4.9) 6.0 2. Non-operating exceptionals 6 months 6 months to 31.3.05 to 31.3.04 Discontinued Discontinued 12 months operations operations to 30.9.04 Total Total Total £m £m £mProfit on disposal: Property in South Africa 0.1 - - Hotels - - 1.3 Agribusiness - - 3.7Exchange (losses)/gains on discontinued activities - (0.1) 0.3Disposal and closure costs - (0.4) (0.2)Recoverable surplus in the pension scheme written off - - (0.5) 0.1 (0.5) 4.6 This information is provided by RNS The company news service from the London Stock Exchange