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Lonrho reports 20% revenue increase; Middle East and African shares mixed bag

Analysis

Lonrho Group (+6.2%), which owns a 49% stake in Fly540, reported (06-Dec-2010) the following financial highlights for the 12 months ended 30-Sep-2010:

Summary
  • Lonrho Group reports positive financial performance for the 12 months ended 30-Sep-2010, with a 20% increase in revenue from continuing operations.
  • Lonrho's subsidiary, Fly540 Angola, is preparing to start commercial operations in the underserved Angolan market, becoming the only private airline in Angola registered with ICAO.
  • Fly540 Ghana is expected to commence operations in 2011.
  • Jazeera and 1time experience a decline in share prices, while Royal Jordanian, Kenya Airways, and Air Arabia see slight gains.
  • Lonrho Group's total assets increase by 40.4% to GBP196.4 million.
  • Lonrho Group's profit before tax from continuing operations improves to GBP0.5 million, compared to a loss of GBP5.9 million in the previous year.
  • Revenue (continuing operations): GBP107.8 million, +20% year-on-year;
  • Transportation: GBP21.5 million, +0.5%;;
  • EBITDA: GBP9.4 million, +336.4%;
  • Profit before tax (continuing operations): GBP0.5 million, compared to a loss of GBP5.9 million in p-c-p;
  • Net profit: GBP0.3 million, compared to a loss of GBP7.6 million in p-c-p;
  • Total assets: GBP196.4 million, +40.4%;
  • Cash balances: GBP7.8 million;
  • Total liabilities: GBP68.7 million, +16.8%.

Lonrho stated (06-Dec-2010) its Fly540 Angola subsidiary is close to commencing commercial operations in the "significantly underserved" Angolan regional and domestic market. The carrier has underwent extensive ICAO audit and once it commences operations will be the only private airline in Angloa that is ICAO registered. Meanwhile, Fly540 Ghana is expected to commence operations in 2011.

Middle East and African shares were a mixed bag on Monday (06-Dec-2010) with Jazeera (-1.6%) and 1time (-1.3%) down while Royal Jordanian (+0.6%), Kenya Airways (+1.1%) and Air Arabia (+2.3%) shares gained slightly.

Selected African and Middle Eastern airlines share price movements: (% change): 06-Dec-2010

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