TIDMLZM
RNS Number : 1370H
LonZim PLC
24 May 2011
24 May 2011
LonZim Plc
("LonZim" or the "Company")
Interim Results 2011
LonZim Plc (AIM:LZM), the Lonrho Plc affiliated investment
company focused on the economic recovery of Zimbabwe, is pleased to
announce its interim results for the period from 1 September 2010
to 28 February 2011.
David Lenigas, Executive Chairman of LonZim commented:
"LonZim has seen progress during the period, and the economic
situation in Zimbabwe continues to improve, albeit from a very low
starting point. There is relative stability in the commercial
environment that is allowing businesses to manage their operations
in a normalised environment, a great improvement from the recent
hyperinflationary economic conditions.
LonZim has five core businesses that are well placed to be part
of the growing Zimbabwean economy. Each has quality management,
access to capital to fund growth and has been restructured and
developed in the past two years with new equipment, resources and
capabilities to be first back to market.
LonZim continues to believe that Zimbabwe will recover to be a
strong Southern African economy and will, in time, rebuild to
become a centre for commerce for the region."
Enquiries:
LonZim Plc +44 (0) 20 7016 5105
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David Lenigas Executive Chairman +44 (0) 20 7016 5105
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Chief Executive
Geoffrey White Officer +44 (0) 20 7016 5105
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David Armstrong Finance Director +44 (0) 20 7016 5105
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WH Ireland Ltd Nomad and Broker
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James Joyce +44 (0) 20 7220 1666
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Pelham Bell Pottinger
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Charles Vivian +44 (0) 20 7861 3126
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+44 (0) 7977 297 903
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James MacFarlane +44 (0) 20 78613864
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+44 (0) 7841 672 831
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Chief Executive Officer's Statement
During the first half of the year LonZim has remained focused on
its central objective and has continued with its strategy of
investing and supporting businesses in Zimbabwe. The Company has
continued to prepare its investments for economic recovery in
Zimbabwe. As a result, Group companies remain well positioned to
benefit from economic recovery as it continues and each of the
businesses within the Group has been structured to be as efficient
as possible, concentrate on their core strengths and put in place
the necessary human and capital resources to be first back to
market.
Zimbabwe has seen six months of relative stability, the economy
has reacted positively to the ongoing predominant currency being US
Dollars and this has resulted in a business environment where
companies are able to understand their cost of sales, overheads and
the sales potential. This in turn enables companies to trade in a
manageable commercial environment, which means that businesses have
the ability to plan and to develop.
The essential requirement for the corporate sector is stability
in the medium term commercial environment. A clear understanding of
what is required in the commercial marketplace allows companies to
make budgets, compare performance, deliver targets and demonstrate
their potential. This in turn generates the opportunity to attract
further investment and thus deliver growth.
LonZim believes that the environment for the commercial sector
has become clearer and, as a result, the Company is seeing improved
planning and forecasting for each Group company, thus enabling the
development of longer term plans and objectives.
LonZim has therefore invested further funds, where appropriate,
to ensure that Group companies have the requisite resources,
equipment and standards to meet their budgets.
The Directors remain confident that Zimbabwe has a sound
economic foundation centred around a uniquely qualified workforce
that is skilled, industrious and valued and a country that has in
place the important infrastructure necessary for a rapid recovery.
The potential for Zimbabwe to return to being an economic
powerhouse for the region is apparent and, as the economy develops
from its low current base, the recovery will inevitably gain
momentum.
LonZim has developed an indigenisation plan in line with
Government mandates and has submitted this to Government for
approval. The Company is also seeking to dual list on the Zimbabwe
Stock Exchange as an integral part of this ongoing process.
Results for the Period:
During the period turnover grew to GBP3,063,000 from
GBP2,677,000 in the equivalent period in the prior year and gross
profit increased by 43%, reflecting the effects of continued
economic recovery. The loss for the period of GBP3,031,000 reflects
the ongoing development of the Group's investments and is in line
with expectations. As at 28 February 2011 the Company had net
assets of GBP33,681,000 and a market capitalisation of
GBP12,588,822.
In December 2010 the Company raised GBP4,987,904 gross by way of
a placing with institutions of 17,813,944 new ordinary shares of
GBP0.0001 each. The proceeds are being used to meet the ongoing
working capital requirements of the Company's subsidiaries and to
provide the Company with the ability to continue implementing its
investment strategy and consider further strategic
acquisitions.
Operational Review:
Leopard Rock Hotel Company (Pvt) Limited ("Leopard Rock") (100%
holding)
Since April 2009, when LonZim acquired the hotel, it has under
gone a significant and detailed refurbishment program to bring what
was a very tired property back up to international standards.
At the front of house, the refurbishment has included the
bedrooms, dining areas, public areas and general building
maintenance. Importantly, at the back of house the refurbishment
has included the kitchens, laundry, IT systems, communications
network, staff quarters and training capabilities. Further
investment has also been made into security at the hotel.
The refurbishment of the hotel has now been completed and the
hotel has seen a rise in guest satisfaction as a result.
Leopard Rock is once again a property that locals and tourists
are happy to visit and to stay at and it has regained its position
as one of the finest hotels in Zimbabwe. The restaurants have
quickly re-established a reputation for outstanding quality and the
hotel is ready to be an integral part of the rebuilding of the
Zimbabwean tourist industry.
Currently the hotel remains with relatively low general
occupancy rates interspersed with periods of full occupancy driven
by specific events such as weddings and conferences.
The unique Leopard Rock golf course is building in popularity as
players realise that the Leopard Rock is once again a destination
of choice for golfers.
Paynet Limited ("Paynet") (100% holding)
Paynet continues to provide Electronic Funds Transfers (EFT)
systems to the majority of banks in Zimbabwe as well as
microfinance through the Tradanet platform that offers payroll
related microfinance loans.
Both sectors are directly related to the economic recovery in
Zimbabwe and the movement and liquidity in the financial
markets.
Paynet has seen an uplift in EFT business during the period and,
as the banking sector recovers, is well positioned to grow as the
volume of EFTs increases with economic activity.
Tradanet has seen a significant increase in the number of
microfinance loans in the market and has benefitted from the
increased confidence that is returning to the economy. Tradanet is
actively seeking increased access to capital from financial
institutions to be able to meet the growing demand for loans in
this niche market.
Celsys Limited ("Celsys") (60% holding)
Celsys has focused operations on its core strengths. The
peripheral non-core operations of Sophos, airtime sales and web
design have been closed or disposed of and the company has centered
operations around security and general printing and the
distribution and lease of ATMs and Point of Sale (POS)
equipment.
The building refurbishment and installation of further printing
equipment has added flexibility, volume capability and further
services to customers. This has set Celsys at the forefront of the
Zimbabwean printing industry and has seen Celsys have an increase
in order numbers and average order size.
Printing remains an important industry sector and, as the
economy recovers and volumes increase, Celsys now has the equipment
capacity, capital and resources to build market share.
The ATM and POS division has successfully deployed a further ten
new Diebold ATMs to Kingdom Bank. These earn guaranteed revenues as
a minimum from each installation and, above the contractual
minimum, a percentage commission on each ATM transaction. As a
result, as the number of transactions through the ATMs increase,
revenues improve. Economic recovery is beginning to see the usage
of ATMs across the country increase as confidence in the banking
sector returns, and the number of ATM transactions that are
building month on month is encouraging.
Aldeamento Turistico de Macuti SARL ("ATdM") (80% holding)
Grafico Azioni Lonzim (LSE:LZM)
Storico
Da Mag 2024 a Giu 2024
Grafico Azioni Lonzim (LSE:LZM)
Storico
Da Giu 2023 a Giu 2024
