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Lonrho reports 31% inrease in 3Q revenues; Fly540 reports revenue growth of 25.6%

28-Jul-2011 12:53 PM

Lonrho reported (27-Jul-2011) revenue in the three months ended 30-Jun-2011 (3Q) of GBP35.1 million, a 31.1% year-on-year increase and a 19.1% increase on a like-for-like basis (excluding acquisitions and disposals). All five divisions within the group showed at least double digit growth on the prior year. Fly540, having seen the full roll out of services in Angola, as well as a ramp up of operations in Tanzania, has achieved turnover growth of 25.6% in the quarter. The company stated the business is "still experiencing some delays" in deploying sufficient aircraft in Angola to service the demand that is being seen on many routes but aircraft arrivals in Aug-2011 and Sep-2011 will increase capacity significantly. High fuel prices and aggressive pricing policies from competitors in Kenya specifically mean that margins in the business remain under pressure in the short term, the company stated. Fly540 is on track to open its third hub in Ghana by Oct-2011. Lonrho noted that the fourth quarter is the most significant for the Group in terms of revenue and profitability and will have a significant impact on results for the financial year. Lonrho commented that with the further expansion of Fly540, the acquisitions of Grindrod PCA and Fish On Line and the implementation of new contracts at Oceanfresh, the "building blocks are in place to deliver results in line with market expectations". [more]