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LONRHO PLC - Interim Results Announcement

Release Date: 10/08/2012 08:00
Code(s): LAF     PDF:  
Wrap Text
Interim Results Announcement

Lonrho Plc
(Formerly Lonrho Africa Plc)
(Incorporated and registered in England and Wales)
(Registration number 2805337)
(Share code: LAF; ISIN number: GB0002568813)


                                    Lonrho Plc (“Lonrho”, the “Company” or the “Group”)

                                               Interim Results Announcement

   Lonrho reports strong revenue growth and improved margins. Lonrho repositioned itself as a significant African
 focused agriculture and logistic company following the successful separation and London Stock Exchange listing of
                                        its Aviation division as FastJet Plc.

Lonrho announces its results for the half year to 30 June 2012 incorporating an update on trading in the second quarter of 2012
and material transactions to 10 August 2012.

Financial Highlights for the six months to 30 June 2012*:

    -   Reported revenue in the 6 months to June 2012 rose 79.2% from £68.6 million to £122.9 million, a like-for-like increase
        of 29.1%.
    -   Reported gross margin for the 6 months stands at 25.6%, having increased 3.6% on a like for like basis. Net operating
        profit from the core divisions (excluding aviation) for the 6 months to June 2012 was £4.7 million, an increase of £6.5
        million over the 6 months to June 2011.
    -   Net assets at 30 June 2012 stood at £209.8million. At 31 December 2011 the comparative figure was £155.7 million.
    -   Net debt reduced in the first half by 23% to £78.7 million at 30 June 2012 compared with £102.7 million at 31
        December 2011.
    -   An exceptional gain of £33.9 million has been taken through the income statement due to the recognition in Lonrho’s
        accounts of FastJet Plc as a jointly controlled entity. As a result profit before tax for the six month period was £23.7
        million.

Financial and Operating Highlights for the quarter to 30 June 2012*:

    -   Revenue in the second quarter increased 82.9% to £64.0 million (2011: £35.0 million). Like-for-like revenue increased
        by 22.9%.
    -   Gross margins across the Group have risen by 2.0% on an adjusted like-for-like basis in the quarter and growth has
        been experienced across all of the Company’s operating divisions.
                                                                                      st
  Continuing                                                                         1 Half
                                          nd
  Operations                             2 Quarter

                           Quarter to    Reported    Adjusted like-   6 months    Reported    Adjusted like-
                              June        growth       for-like**      to June     growth       for-like**
                              2012                      growth          2012                     growth
                            £ million                                 £ million
  Revenue
  - Agribusiness             35.8        135.5%         15.9%           72.7       129.3%         30.5%
  - Infrastructure            6.5         12.1%         18.2%           10.9         9.0%         12.4%
  - Hotels                    2.7         17.4%          8.0%            5.1        13.3%          4.1%
  - Support Services          8.5         54.5%         47.3%           14.0        30.8%         24.8%

  Core Divisions             53.5         85.8%         19.6%          102.7       80.5%          25.9%

  - Transportation           10.5         69.4%         46.0%           20.2       72.6%          50.4%

  Lonrho Plc                 64.0         82.9%         22.9%          122.9       79.2%          29.1%

  Group Gross Margin        23.8%         3.8%           2.0%          25.6%        4.0%           3.6%
*throughout this announcement prior year comparisons refer to the six months to June 2011. In the interim financial statements the comparative
period is the six months to 31 March 2011
**includes acquisitions (pre-acquisition comparables based on un-audited management accounts), excludes start-up businesses trading for less
than 12 months and is adjusted to constant currency

During the quarter, having completed its investment objectives for its aviation division, Lonrho separated its aviation division
from Lonrho Plc into a stand alone, listed company, Rubicon Plc, subsequently renamed FastJet Plc. The transaction was for
a consideration of £55.1 million paid in FastJet Plc shares. FastJet Plc shares are traded on the London AIM market. The
transaction gave Lonrho an initial 73.7% stake in the enlarged share capital of FastJet.

Sir Stelios Haji-Ioannou, the founder and major shareholder of easyJet, the world’s most successful low cost airline, and his
easyGroup have become a shareholder in FastJet and, following significant due diligence of the market opportunity, Sir Stelios
has introduced a new world class management team to the company to build FastJet into the low cost airline for Africa.

    ?    Since the completion of the transaction, FastJet has raised an additional £5.5 million of new equity which will be used
         for the roll out of the Fastjet model throughout Africa. Consequently Lonrho’s holding in FastJet became 67.8%.
    ?    Rubicon has also announced it has entered into an agreement with Airbus for FastJet to use the A319 model as its
         aircraft choice. The first aircraft is due to be delivered by October with 5 due to become operational within 6 months of
         launch.
    ?    The costs related to the separation, listing and restructuring of Fly540 to become FastJet Plc had an unavoidable
         impact of slowing down the development of Fly540 during the transition period and the introduction of the new
         management team and shareholders. This has resulted in a net operating loss of £8.8million in the Aviation division for
         Lonrho in the period.

The first half of the financial year has seen the Group continue to see real growth in revenue and profitability of the Group’s
core businesses. Key highlights for the quarter include:

    ?    Oceanfresh has begun delivery of hake loins to Costco in the USA under the ‘Kirkland Signature’ brand. The start of
         delivery plus good momentum in domestic markets has led to the business seeing revenue in Q2 jump 63% on the
         prior year.
    ?    Lonrho’s hotel division has seen the opening of the Lansmore – Masa Square, in Gaborone, Botswana. The hotel has
         153 rooms which will be fully operational by September, with the hotel expected to develop to be the leading 5 star
         hotel in Botswana.
    ?    Lonrho’s services provider, AFEX delivered services to Fluor including logistics, warehousing and vehicle supply during
         the quarter. This contract, along with continued strong performance of the fixed camps, and services to customers such
         as Tullow, has helped to significantly increase revenues in the period.
    ?    Fresh Direct’s Strawberry project for Pick’n’Pay has been more successful than budgeted with in excess of 6,000kgs
         being produced weekly. This has meant that the business has seen revenues in the quarter top £2.0 million and the
         program has been extended to a full annual cycle.
    ?    Kwikbuild has now completed delivery of 31% of schools on the Eastern Cape project. The remaining schools will be
         delivered in the coming quarter with new projects now in the sales pipeline.

Lonrho’s nominated Directors on the LonZim board stepped down in the first quarter of 2012. LonZim has subsequently
renamed itself Cambria Africa Plc., with Lonrho remaining as Cambria’s largest shareholder holding a 22.9% stake as at 30
June 2012. As a result of these changes Lonrho no longer accounts for Cambria as an associate company but instead reports
it’s holding as an investment on the balance sheet. This resulted in an income statement write-down of £3.3 million in the
period.

Following a very successful six months, and the separation of the aviation division, the Company is in a solid position to
continue to deliver on its core businesses. The global economic environment remains challenging and it is difficult to predict the
impact on some of the Group’s export markets. However, the Group has achieved a number of key milestones in the first half of
the year which the Board believes that will help to deliver continued growth in the second half, traditionally a stronger sales
period for the Group. The Board is confident that there is now a strong platform in place across the Group’s four core operating
divisions from which it can continue to successfully drive the profitability and cash generation of each. It remains the Board’s
intention to introduce a dividend policy that will be made public during 2012 for introduction during 2013.

David Lenigas, Lonrho's Executive Chairman, commented:

“Lonrho continues to deliver strong growth in revenues and margins in its core business divisions and is continuing to see the
growth convert into operating profitability as planned. The successful completion of Lonrho’s investment phase in the aviation
division, and its subsequent separation to become FastJet plc, demonstrates Lonrho’s ability to build value creating businesses
with strong potential. Sir Stelios and his new management team will allow the airline to develop rapidly and grow to meet the
clear market opportunities for a reliable international standard low cost carrier for Africa.

Lonrho is now able to focus on its core businesses in agriculture and logistics. These businesses generated like for like
revenue growth in the 6 months of 26.4% and net operating profit of £4.7 million. Our operational businesses are directly
aligned with the economic drivers of emerging Africa therefore Lonrho is well placed to continue to deliver growth.”

Lonrho will be hosting a conference call for analysts to discuss the Group’s half year trading update with David Lenigas,
                                                    th
Geoffrey White and David Armstrong on Friday 10 August 2012 at 9:30am. For details on the call please contact FTI
Consulting.


                                                             ENDS

Enquiries:

Lonrho Plc             +44 (0) 20 7016 5105       FTI Consulting             +44 (0) 20 7831 3113
David Lenigas                                     Edward Westropp
Geoffrey White                                    Georgina Bonham
David Armstrong
Chief Executive’s Statement

During the six month period ended 30 June 2012 Lonrho completed its five year programme of developing operational hubs in East,
West and South-West Africa for Lonrho Aviation and subsequently completed the strategic separation of its aviation division for a
consideration of US$85.7m (£55.1m) to Rubicon Diversified Investments Plc (“Rubicon”), later renamed FastJet Plc (“FastJet”) on 6
August 2012. With the completion of this transaction, Lonrho will not invest any further funds into FastJet which is self funding and
which has successfully raised new funding from the market since listing.

In line with our stated strategy, Lonrho is now able to focus on its remaining four core operating divisions, all of which saw strong
growth and gross margin improvements during the period, resulting in a net operating profit* of £4.7m being achieved across the four
divisions.

Lonrho’s core operational businesses are solely focused on the opportunities that are available across Africa. Today, Africa contains
seven out of the top ten fastest growing economies in the world with a number of countries consistently reporting double digit growth
in GDP. Africa contains 60% of the world's arable land and 15% of the world's proven oil and gas reserves, with further reported finds
increasing reserves monthly. The global economy is becoming increasingly dependent on African agricultural output to meet
consumer demand and African oil & gas production to meet future energy requirements. As a result of the foreign direct investment
that the development of these industries has attracted to Africa and the economic development that they stimulate, there is a rapid
emergence of the middle-class consumer. This active socio-economic group within African society has triggered a subsequent sharp
increase in consumer demand.

Africa’s population of more than one billion has become a significant consumer market, with formal domestic consumption forecast to
reach US$ 1.6 trillion by 2020 (with the informal sector believed to be as much again). Additional factors underpinning the Continent’s
growth are a mineral products boom, infrastructure development and an improvement in economic governance.

Lonrho is increasingly seen as a ‘proxy’ for the African emerging market. Over the past four years, it has aligned its operations with
the drivers of African economic development, namely, Agriculture, Oil & Gas, Minerals and the growing domestic population and the
rapidly expanding consumer marketplace they have created. The Company's one hundred and three year legacy of building
successful businesses across the Continent provides Lonrho with an unparalleled brand awareness and depth of support that gives it
a significant commercial advantage in Africa.

Lonrho is unique in that it only operates in Africa, where it understands the markets in which it is active and has the reputation and
respect necessary to deliver in the African market, whilst being listed on the main market of the London Stock Exchange and
operating to international standards.

After the transfer of the aviation division to FastJet, Lonrho’s core operational businesses focus on:

                                                                            % revenue **      YOY % growth***
Agribusiness: Agriculture and Agri-logistics                                71%               130%

Infrastructure: Oil & gas logistics terminals and Prefabricated buildings   10%               47%

Hotels: International and budget hotels                                     5%                21%

Support Services: IT and Integrated support services                        14%               79%




* As defined in Note 3b
** Excluding aviation
***Throughout these interim accounts the comparative period used is the 6 months ended 31 March 2011 due to the change in the
Group’s year end in 2011

Financial Highlights for the 6 months to 30 June 2012

?   Revenue of £122.9m, an increase of 101.1% from the 6 months to 31 March 2011
?   Gross margins of 25.6%, an increase of 1.5% from 2011
?   Net assets at 30 June 2012 increased by 35% to £209.8m compared with £155.7m at 31 December 2011
?   Net indebtedness decreased by 23% to £78.7m as at 30 June 2012 compared with £102.7m as at 31 December 2011
?   Net operating profit from the core operating divisions of £4.7m compared with £0.7m in the 6 months to 31 March 2011
? Profit before tax of £23.7m including a net gain of £33.9m from the transfer of the aviation division to joint control

Lonrho’s aviation division separates to become FastJet

The most significant change to the Group during the period was the separation of Lonrho’s aviation division (the Fly540 regional
airline) into Rubicon, whose shares trade on AIM, for a consideration of £55.1m (US$85.7m) satisfied by the issue of new Rubicon
ordinary shares to Lonrho.

Over the past five years, Lonrho has developed its regional African scheduled aviation division, Fly540, into a significant airline
carrying 50,000 passengers a month and serving the East, West and South-West of Africa from hubs in Kenya, Ghana and Angola
respectively. Fly540 was budgeted to achieve revenues of £70m in 2012, and operates the foremost private sector route network in
Africa.

Having completed the crucial establishment phase of the airline’s development, the Lonrho Board believed that it was essential, for
the further development of the airline, to bring world class aviation expertise into the business and establish the aviation division in its
own separate corporate structure. As a consequence, on 29 June 2012, Rubicon completed its acquisition of the aviation division,
with the enlarged share capital of Rubicon beginning trading on AIM on 2 July 2012 and Rubicon subsequently being renamed
FastJet on 6 August 2012.

FastJet has subsequently raised £5.5m through an equity fundraising in order to fund its growth and the deployment of Airbus‘
A319’s, which will be the standard aircraft for FastJet. As stated at the time of completion of the transaction, Lonrho has now
completed its investment in the aviation sector and thus did not take part in the FastJet fundraising. Lonrho’s current holding in
FastJet is 67.4% and it is no longer involved in the day-to-day management of the business, as FastJet implements its own self-
funded strategy for its development.

Sir Stelios Haji-Ioannou, the founder and major shareholder of easyJet, the world’s most successful low cost airline, and his
easyGroup have became a shareholder in FastJet and, following significant due diligence of the market opportunity, Sir Stelios has
introduced a new world class management team to FastJet to build it into the low cost airline for Africa.

The Lonrho Board, Sir Stelios and easyGroup believe that the opportunity for a regional low cost carrier in the growing African
marketplace is significant, and that the unique combination of
      -     Lonrho’s African expertise;
      -     the existing aviation operations established by Lonrho across the Continent;
      -     easyGroup and Sir Stelios’ aviation experience and
      -     the new management team introduced by Sir Stelios to run the business moving forward
collectively provide a unique opportunity to rapidly build a significant low cost airline connecting Africa.

FastJet is consolidated as a jointly controlled entity in Lonrho’s Group accounts. This has resulted in a one-off net gain during the
period in relation to the transfer of the aviation division to joint control of £33.9m. The business impact relating to the separation,
listing and restructuring of Fly540 to become FastJet, the inevitable slow down of development during the transition and the
introduction of the new management team and shareholders in FastJet, when combined with the operations, have resulted in a net
operating loss of £8.8m in the aviation division for Lonrho in the period. For the purposes of this reporting period, the results for the
six month period of the Transportation division are separately disclosed from those of the remaining four core operating divisions.

Operational Review

Lonrho is now focused on its four core divisions: Agribusiness, Infrastructure, Hotels and Support Services, all of which reported
strong growth during the period.

Agribusiness

Revenues of £72.7 million, up 130%, Gross Margin up 0.7% (compared with 6 months to 31 March 2011)

Agribusiness is now the largest of Lonrho’s core divisions, accounting for 71% of revenues, and has seen significant growth in each
of its operations: Fresh Produce (comprising Rollex, Fresh Direct and Lonrho Logistics); Fish (comprising Oceanfresh and Fish-on-
Line) and Agricultural Equipment.

Lonrho believes that Africa, which holds 60% of the world’s arable land, is an essential component to meeting global expanding food
demand. Agriculture is a major contributor to Africa’s economies and, over the past four years, Lonrho has established a unique
vertically integrated agri-logistics delivery cold chain that can reliably deliver fresh produce from Africa to market providing continuity
of quality and traceability. The Company believes that this vertically integrated cold chain is of great appeal to the world’s food
retailers.

The completion of the Group’s vertically integrated cold chain facilities has now resulted in Lonrho being able to deliver fresh produce
from across Southern Africa to a global market. This business is building significant momentum with a blue chip client base and
Lonrho is seeing growth in demand from African, European, Scandinavian, North American, and, increasingly, Far Eastern
supermarket chains.
The supply contract to Pick n’ Pay for fresh strawberries has had the volumes expanded and the term lengthened following the
success of the initial programme. It will now continue to operate on a full time annual basis as opposed to the 9 month season
originally envisaged.

Unusual inclement weather has had a limited short-term effect on a proportion of the Group’s young peach plantations, which are
now amongst the largest on the Continent. At this young stage of their development, the fruit on the peach trees can be more
susceptible to severe frost. As a result of a highly unusual cold spell, the export quality peach forecast for the year has conservatively
been reduced by 25% from initial expectations for this year only. Lonrho remains confident that the peach tree programme is on track
and that this will have no impact on their long-term prospects. The existing plantations will mature into the largest in Africa over the
next three years, producing fruit as planned specifically to meet the demand from Europe for the six weeks prior to Christmas each
year.

In the Fish business, there is continued strong demand for Namibian and South Africa wild caught, sustainably sourced hake, which
is a white fish that is similar to cod. The profitable contracts supplying to Costco and Walmart in the USA continue, and new listings
for the third quarter of 2012 include Sam’s Club, Sainsburys, and a range of initial orders into the Far East.

The crustacean market continues to see strong global demand and, during the period, Lonrho has taken over the largest cold stores
and processing facility in the fishing port in Maputo, Mozambique. This has positioned Lonrho as the leading exporter of lobsters,
langoustines and prawns from Mozambique to the global market.

Significant wins for the Fish business during the first half of 2012 include the upgrading of an Oceanfresh line being supplied to
Costco in the USA into a ‘Kirkland Signature’ brand line. As a ‘Kirkland Signature’ brand line the product will be distributed in every
Costco store worldwide and comes with a three year commitment from Costco to support the product. Rollout of this line began in
June of this year and the Group hopes to add further ‘Kirkland Signature’ brand lines to the range moving forward.

Within the Agricultural Equipment business, sales remain strong and Lonrho increased John Deere’s market share in all the countries
where the Group operates. On 17 January 2012, Lonrho completed the purchase of LonAgro Tanzania for US$1.4 million (£0.9
million) which has the exclusive distributorship for Tanzania. A new distributor was also launched in South Sudan. These two newest
distributorships are seeing positive initial business, and the established distributorships in Mozambique and Angola continue to build
customer allegiance and sales by ensuring the highest levels of customer support, spare parts and maintenance, giving customers
confidence to buy and operate John Deere equipment.

Infrastructure

Revenues of £10.9 million, up 47%, Gross Margin up 3.9% (compared with 6 months to 31 March 2011)

The oil services business delivers one of the strongest margins within the Group and typically revenues are from large ‘blue chip’ oil
supply and service companies operating globally.

Luba Freeport has seen a very strong first half of 2012. This has been driven by a combination of delayed drilling programmes that
were scheduled for 2011, but which only started in 2012, and new exploration and production that has commenced in 2012. Recently
Ophir, a Luba client, announced a significant new gas find in Equatorial Guinean waters. The Tonel-1 well has exceeded pre-drilling
expectations and the find represents a significant step towards the commercial threshold volumes required for a second Liquid
Natural Gas train for Equatorial Guinea.

Lonrho is well advanced in concluding the structure with the Ghanaian Government and private sector finance for a major oil logistics
terminal to be located in Ghana. The initial designs for this project, in Atuabo, Western Ghana, include a 2,000 acre development site,
operating as a specific free trade zone for the oil & gas industry. The site will also include a rig and ship repair facility for serving the
wider West African market, where currently rigs need to be towed to either Las Palmas, Canary Islands or Cape Town, South Africa
for maintenance.

Further discussions with certain Governments are underway regarding opportunities on the East coast of Africa to support the rapidly
expanding oil & gas sectors.

The e-Kwikbuild manufacturing plant in Cape Town has now been fully commissioned and a new CEO for the business has been
recruited to enhance management capabilities and further grow the business. The demand for prefabricated buildings continues to
expand as Africa’s economies grow. Prefabricated buildings remain a quick and simple solution for natural resource companies,
offices, accommodation, clinics and other uses, where days after arrival on a site, no matter how remote, the buildings are installed
and operational.

In the first quarter of 2012, e-Kwikbuild won its largest ever order for 418 school classrooms for the Eastern Cape in South Africa,
which will generate revenue of £10.2 million at healthy margins.

An increasing focus for e-Kwikbuild is on attracting new export opportunities from the private sector from outside South Africa. This
will reduce its reliance on South African Government tenders for business, and the new sales drive for private sector orders has seen
initial deliveries to Mozambique, the Democratic Republic of the Congo and Tanzania as export destinations for e-Kwikbuild buildings.

Hotels
Revenues of £5.1 million up 21%, Gross Margin up 0.4% (compared with 6 months to 31 March 2011)

The Hotels division continues to progress, winning a new hotel management contract in Kinshasa, the capital of the Democratic
Republic of the Congo, and a new lease contract in Gaborone, the capital of Botswana, further expanding the Lonrho Hotels’ network
across the Continent.

The Grand Hotel in Kinshasa is the foremost hotel in the Congolese capital and the Government is funding a total refurbishment
programme for the property to bring it back to its original status as one of the leading hotels in Africa. The property dominates the
Kinshasa hotel market with 450 rooms. Lonrho Hotels has taken over the management of the property with a mandate to bring it back
up to international standards.

The new Lonrho property in Gaborone is in the recently developed Masa Square development, at the heart of the Central Business
District. Lonrho has opened the property as a ‘Lansmore Hotel by Lonrho’, Lonrho Hotels’ four / five-star brand. It is expected that the
property will become the hotel of choice for those visiting Gaborone.

The first easyHotel by Lonrho is expected to open in the Central Business District of Johannesburg by the end of the year and a
strong pipeline of potential easyHotel projects is in place.

Support Services

Revenues of £14.0 million up 79%, Gross Margin up 15.8% (compared with 6 months to 31 March 2011)

The Support Services division is providing ‘one-stop’ camp and logistics solutions through AFEX to a growing number of resource
companies and Government agencies, which are attracted by Lonrho’s ability to provide a comprehensive service under one
ownership structure.

AFEX continues to deliver strongly, with recent new contracts awarded by Tullow Oil, Fluor and Africom. The camp operations in
Juba, South Sudan, are continuing to be popular with high occupancy and yields.

Lonrho IT also continued to make strong progress in the period with new contract wins from blue chip clients, including reporting rapid
growth in its newer markets such as Zambia and Zimbabwe.

Corporate

During the period Lonrho announced the appointment of Jefferies Hoare Govett (“JHG”) as broker to the Company. JHG brings a
wider exposure for the Company to institutional clients, and specifically brings strong access to the US institutional market. Lonrho
believes there is growing interest in the USA in emerging Africa, where there will be resonance with Lonrho’s supply of African
produce into the USA to Walmart, Costco and other retailers, as well as Lonrho’s distribution of John Deere agricultural equipment in
Africa.

On 3 January 2012, Lonrho completed an equity raise of £26.9 million. The Company received valid acceptances in respect of
22,534,994 new ordinary shares from qualifying shareholders, representing approximately 20.8 per cent of the new ordinary shares
offered under the Open Offer. A total of 269,498,795 shares were issued at an issue price of 10 pence per new ordinary share.

In February 2012 the four Lonrho nominated Executive Directors stepped down from the Board of LonZim Plc. Jean Ellis also
stepped down as a Non-Executive Director of LonZim. The decision was taken based on the Lonrho Executive Directors’ desire to
focus on Lonrho’s core businesses, whilst allowing LonZim to grow under its own dedicated management team. LonZim was
subsequently renamed Cambria Africa Plc. Lonrho remains as Cambria’s largest shareholder with a 22.92% stake as at 30 June
2012. As a result of these changes Lonrho no longer accounts for Cambria as an associate company but instead reports its holding
as an investment on the balance sheet.


Financial Performance

Lonrho’s four core operating divisions (Agribusiness, Infrastructure, Hotels and Support Services) have delivered solid growth in
performance in the first half of the year, recording improvements in turnover and gross margin. Net operating profit across these four
divisions rose to £4.7m compared to £0.7m for the 6 months to 31 March 2011.

The separation of Lonrho’s aviation division into FastJet was completed on 29 June 2012. Hence these interim accounts also
incorporate the trading of the aviation division from 1 January to 29 June 2012 (disclosed as the Transportation division). The
Transportation division made a net operating loss of £8.8m in the first half of 2012 reflecting the ongoing start-up costs in Angola and
Ghana as well as a slow down in the deployment of new aircraft and the restructuring prior to the transfer to FastJet.

With effect from 29 June 2012, the Group will account for FastJet as a jointly controlled entity, reflecting the management structure of
the business whereby neither Lonrho nor easyGroup have Board control over FastJet but jointly can appoint up to four Directors.
This means that the Group will report its share of the results of FastJet in the income statement from 29 June 2012 as share of jointly
controlled entity and on the Consolidated Statement of Financial Position as a single line item reflecting the fair value of the Group’s
investment. As part of the transaction, FastJet issued options to its Directors and easyGroup which result in the calculation of a
share-based payment charge in the accounts of FastJet. Lonrho’s share of this charge is £1.3m, which is reported under share of
results of jointly controlled entities in the income statement.

The change to the accounting treatment of FastJet to become a jointly controlled entity also creates a one-off non-cash gain of
£33.9m (net of transaction costs), representing the difference between the value of the consideration payable to Lonrho pursuant to
the transaction of US$ 85.7 m (£55.1m) and the net asset value of the aviation division at the date of transfer. This gain has been
disclosed separately on the consolidated statement of financial position and is discussed further in Note 8 to these interim accounts.


Divisional Performance

The results of the Group’s operating divisions are set out in Note 6 – Segmental reporting. In order to understand the impact of the
aviation division on the results for the interim period the table below splits out a pro-forma income statement for the core of the
Lonrho Group.


                                                                                  Transportation
                                                                                       (including
                                                                                    discontinued     6 months to 30 June
                                                           Core divisions              operation)                   2012
                                                                      £m                      £m                      £m
 Revenue                                                            102.7                    20.2                  122.9
 Cost of sales                                                      (74.7)                  (16.7)                 (91.4)
 GROSS PROFIT                                                        28.0                     3.5                    31.5
 Gain arising on fair valuation of biological assets                  3.7                        -                    3.7
 Other operating income
 - Gains on acquisitions                                                 -                       -                      -
 - Other                                                              0.7                        -                    0.7
 Operating costs                                                    (26.0)                  (11.0)                 (37.0)
 OPERATING PROFIT / (LOSS)                                            6.4                    (7.5)                  (1.1)
 Finance income                                                       3.8                     0.1                     3.9
 Finance expense                                                     (7.0)                   (1.4)                  (8.4)

 NET FINANCE EXPENSE                                                 (3.2)                   (1.3)                  (4.5)
 NET OPERATING PROFIT / (LOSS)                                        4.7                    (8.3)                  (3.6)
 Share based payments                                                (0.8)                       -                  (0.8)
 Amortisation                                                        (0.7)                   (0.5)                  (1.2)
 OPERATING PROFIT/ (LOSS) AFTER
 FINANCING                                                            3.2                    (8.8)                  (5.6)

 Share of results of associates                                      (3.1)                       -                  (3.1)
 Share of results of jointly controlled entity                       (1.3)                       -                  (1.3)
 Gain on contribution of subsidiary to jointly
 controlled entity                                                   33.9                        -                   33.9
 Loss on other investments                                           (0.2)                       -                  (0.2)
 PROFIT / (LOSS) BEFORE TAX                                          32.5                    (8.8)                   23.7
 Income tax charge                                                   (0.2)                       -                  (0.2)
 PROFIT / (LOSS) FOR THE PERIOD                                      32.3                    (8.8)                   23.5

In the second half of 2012 and in future financial years the Group’s consolidated income statement will reflect just the financial
performance of the core divisions in line with the pro-forma above.

Net Indebtedness

The Group’s net indebtedness has reduced to £78.7m as at 30 June 2012 from £102.7m at 31 December 2011. In part this is due to
the transfer of debt to FastJet (representing finance leases on aircraft and working capital facilities), together with proceeds from the
January equity raise. The Group has continued to invest in working capital to support growth, especially in the Agribusiness division
where Oceanfresh has geared up for the rollout of the ‘Kirkland Signature’ brand line with CostCo, which began in June.

Associates/Investments

As mentioned above, the Group now accounts for its stake in Cambria Africa Plc as an investment with effect from 24 February 2012.
Consequently the investment has been marked-to-market as at 30 June 2012, which, together with Lonrho’s share of losses before
the change from associate to investment, results in a write-down of £3.3m.



Outlook

Following a very successful six months, and the separation of the aviation division, the Company is in a solid position to continue to
deliver on its core businesses. The global economic environment remains challenging and it is difficult to predict the impact on some
of the Group’s export markets. However, the Group has achieved a number of key milestones in the first half of the year which the
Board believes will help to deliver continued growth in the second half, traditionally a stronger sales period for the Group. The Board
is confident that there is now a strong platform in place across the Group’s four core operating divisions from which it can continue to
successfully drive the profitability and cash generation of each. It remains the Board’s intention to introduce a dividend policy that will
be made public during 2012 for introduction during 2013.


Geoffrey White
Director and Chief Executive Officer
10 August 2012
  Condensed consolidated interim income statement
                                           Unaudited 6 months to 30 June 2012               Unaudited 6 months to 31 March 2011         Audited 15 months to 31 December 2011

                                            Continuing    Discontinued      Total         Continuing   Discontinued      Total         Continuing   Discontinued      Total
                                            Operations     Operations                     Operations    Operations                     Operations    Operations
                                                   £m               £m              £m           £m              £m              £m           £m              £m              £m
                                    Note

Revenue                                          122.9               -          122.9           61.1              -          61.1          188.4             0.2         188.6
Cost of sales                                    (91.4)              -          (91.4)        (46.4)              -         (46.4)        (137.2)          (0.7)        (137.9)
GROSS PROFIT/(LOSS)                               31.5               -           31.5           14.7              -          14.7            51.2          (0.5)          50.7
Gain arising on fair valuation of
biological assets                                  3.7               -              3.7          4.9              -              4.9         27.4              -          27.4
Other operating income
-    Gain on acquisitions                             -              -               -             -              -              -           15.8              -           15.8
-    Other                                          0.7              -             0.7           1.6              -            1.6            2.2              -            2.2
Operating costs                                  (36.9)          (0.1)          (37.0)        (21.3)          (0.2)         (21.5)         (80.4)          (0.6)         (81.0)
OPERATING (LOSS)/PROFIT                           (1.0)          (0.1)           (1.1)         (0.1)          (0.2)          (0.3)           16.2          (1.1)          15.1
Finance income                       10            3.9               -              3.9          1.5              -              1.5          6.8              -              6.8
Finance expense                      10           (8.4)              -           (8.4)         (4.3)              -          (4.3)         (16.2)              -         (16.2)
NET FINANCE EXPENSE                  10           (4.5)              -           (4.5)         (2.8)              -          (2.8)          (9.4)              -          (9.4)
NET OPERATING (LOSS)/
PROFIT                                            (3.5)          (0.1)           (3.6)         (2.5)          (0.2)          (2.7)            9.6          (1.1)            8.5
Share based payments                              (0.8)              -           (0.8)             -              -              -          (0.7)              -          (0.7)
Amortisation                                      (1.2)              -           (1.2)         (0.4)              -          (0.4)          (2.1)              -          (2.1)
OPERATING (LOSS)/PROFIT
AFTER FINANCING                                   (5.5)          (0.1)           (5.6)         (2.9)          (0.2)          (3.1)            6.8          (1.1)            5.7
Share of results of associates                    (3.1)              -           (3.1)           0.2              -            0.2          (5.9)              -          (5.9)
Share of results of jointly
controlled entity                    11           (1.3)              -           (1.3)             -              -                -            -              -                -
Gain on contribution of
subsidiary to jointly controlled
entity                                8           33.9               -           33.9              -              -                -            -              -                -
(Loss)/Gain on other
investments                                       (0.2)              -           (0.2)             -              -                -          1.0              -              1.0
PROFIT / (LOSS) BEFORE
TAX                                               23.8           (0.1)           23.7          (2.7)          (0.2)          (2.9)            1.9          (1.1)              0.8
Income tax charge                                 (0.2)              -           (0.2)         (0.4)              -          (0.4)          (0.3)              -          (0.3)
PROFIT/(LOSS) FOR THE
PERIOD                                            23.6           (0.1)           23.5          (3.1)          (0.2)          (3.3)            1.6          (1.1)              0.5

ATTRIBUTABLE TO:
Owners of the Company                             25.8           (0.1)           25.7          (1.0)          (0.2)          (1.2)            7.1          (1.1)              6.0
Non-controlling interests                         (2.2)              -           (2.2)         (2.1)              -          (2.1)          (5.5)              -          (5.5)
PROFIT/(LOSS) FOR THE
PERIOD                                            23.6           (0.1)           23.5          (3.1)          (0.2)          (3.3)            1.6          (1.1)              0.5
EARNINGS/ (LOSS) PER
SHARE:
Basic earnings/(loss) per share
(pence)                             1.65   (0.1)   1.64   (0.8)   (0.2)   (0.10)   0.58   (0.09)   0.49

Diluted earnings/(loss) per share
(pence)                             1.64   (0.1)   1.63   (0.8)   (0.2)   (0.10)   0.57   (0.09)   0.48
Condensed consolidated interim statement of
comprehensive income


                                                Unaudited     Unaudited         Audited
                                               6 months to   6 months to   15 months to
                                                  30 June      31 March    31 December
                                                     2012          2011           2011
                                                       £m            £m             £m

Foreign exchange translation differences             (2.9)           0.8          (0.2)
Revaluation of property, plant and equipment             -             -            7.2
Total other comprehensive income and expense         (2.9)           0.8            7.0
Profit /(Loss) for the period                        23.5          (3.3)            0.5
Total comprehensive income and expense               20.6          (2.5)            7.5



ATTRIBUTABLE TO:
Owners of the Company                                22.8          (1.1)            9.7
Non-controlling interests                            (2.2)         (1.4)          (2.2)
Total comprehensive income and expense               20.6          (2.5)            7.5
Condensed consolidated statement of changes in equity


                                                     Unaudited 6 months to 30 June 2012          Unaudited 6 months to 31 March 2011              Audited 15 months to 31 December 2011
                                                                    Non-                                          Non-                                            Non-
                                           Owners of the      Controlling                  Owners of the    Controlling                 Owners of the       Controlling
                                              Company           interests          Total      Company         interests         Total      Company            interests            Total
                                                     £m               £m            £m               £m             £m           £m               £m                £m              £m


 At beginning of period                           135.2             20.5          155.7           107.4           20.3         127.7           107.4             20.3             127.7
 Profit/ (Loss) for the period                      25.7            (2.2)          23.5            (1.2)          (2.1)         (3.3)             6.0            (5.5)               0.5
 Foreign exchange translation
 differences                                       (2.8)            (0.1)          (2.9)            0.1            0.7            0.8           (0.5)             0.3              (0.2)
 Revaluation of property, plant and
 equipment                                             -                -              -               -              -             -             4.2             3.0                7.2
 Total comprehensive income and
 expense                                           22.9             (2.3)          20.6            (1.1)          (1.4)         (2.5)             9.7            (2.2)               7.5
 Issue of shares                                   25.5                 -          25.5              0.3              -           0.3           18.9                 -             18.9
 Share based payment charge                          0.8                -            0.8               -              -             -             0.7                -               0.7
 Costs associated with share issues                (1.1)                -          (1.1)               -              -             -           (0.4)                -             (0.4)
 Share options exercised                             0.3                -            0.3               -              -             -             0.7                -               0.7
 Subsidiaries acquired                                 -                -              -               -              -             -               -              2.2               2.2
 Subsidiaries disposed                                 -                -              -               -          (0.1)         (0.1)               -            (0.2)             (0.2)
 Non-controlling interest dividends                    -                -              -               -              -             -               -            (0.2)             (0.2)
 Transfer from non-controlling interest                -              8.0            8.0               -              -             -               -                -                 -
 Non-controlling interest put option                   -                -              -               -              -             -           (2.3)                -             (2.3)
 Capital element of convertible bond                   -                -              -             1.0              -           1.0             1.1                -               1.1
 Elimination of non-controlling interest               -                -              -               -              -             -           (0.6)              0.6                 -
 At end of period                                 183.6             26.2          209.8           107.6           18.8         126.4           135.2             20.5             155.7
Condensed consolidated interim statement of
financial position

                                                             Unaudited   Unaudited        Audited
                                                               30 June    31 March   31 December
                                                                  2012        2011          2011
                                                     Note.         £m          £m             £m
ASSETS
Goodwill                                                          17.6        15.8          17.8
Other intangible assets                                           19.9         5.6          21.9
Property, plant and equipment                                    136.7       124.0         166.2
Biological assets                                                 36.5        15.0          33.8
Investments in associates and joint ventures           11          1.2        12.9           6.9
Investment in jointly controlled entity                11         54.3           -             -
Other investments                                      11          3.5         0.2           1.7
Deferred tax                                                       2.1         0.7           1.8
TOTAL NON-CURRENT ASSETS                                         271.8       174.2         250.1
Inventories                                                       21.5         6.7           20.1
Trade and other receivables                                       46.7        45.8           48.8
Cash and cash equivalents                                         12.5        23.9           12.7
TOTAL CURRENT ASSETS                                              80.7        76.4           81.6
TOTAL ASSETS                                                     352.5       250.6         331.7
EQUITY
Share capital                                          17         15.7        11.8           13.0
Share premium                                          17       136.2       138.4          138.2
Revaluation reserve                                    17          9.1         3.9            9.1
Share option reserve                                   17          7.3         4.6            5.4
Translation reserve                                    17       (13.1)       (9.2)         (10.4)
Other reserves                                         17         33.9       (4.5)           11.0
Retained earnings                                      17        (5.5)      (37.4)         (31.1)

TOTAL EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE
COMPANY                                                          183.6       107.6         135.2
NON-CONTROLLING INTERESTS                                         26.2        18.8           20.5
TOTAL EQUITY                                                     209.8       126.4         155.7
LIABILITIES
Loans and borrowings                                    9         74.2        63.0           76.7
Deferred tax                                                       3.8         3.0            4.1
Obligations under finance leases                        9          0.9        10.8           18.6
Provisions                                                         1.5           -              -
Trade and other payables                                          10.6         3.3           16.1
TOTAL NON-CURRENT LIABILITIES                                     91.0        80.1         115.5
Bank overdraft                                          9          4.7         4.7           12.2
Loans and borrowings                                    9         10.4         3.9            3.0
Obligations under finance leases                        9          1.1         0.9            4.9
Trade and other payables                                          34.7        34.3           39.7
Tax liability                                                      0.8         0.3            0.7
TOTAL CURRENT LIABILITIES                                         51.7        44.1           60.5
TOTAL LIABILITIES                                                142.7       124.2         176.0
TOTAL EQUITY AND LIABILITIES                                     352.5       250.6         331.7
Condensed consolidated interim cash flow statement



                                                                                    Unaudited                    Unaudited                      Audited
                                                                                   6 months to                  6 months to                15 months to
                                                                                      30 June                     31 March                 31 December
                                                                                          2012                         2011                        2011

                                                             Note                           £m                          £m                              £m

CASH FLOWS FROM OPERATING ACTIVITIES
Profit/(loss) for the period                                                              23.5                         (3.3)                            0.5
Adjustments                                                     13                       (19.9)                         1.8                       (16.4)

CASH FLOWS FROM OPERATING ACTIVITIES
BEFORE MOVEMENTS IN WORKING CAPITAL                                                         3.6                        (1.5)                      (15.9)
Change in inventories                                                                     (5.2)                        (1.5)                      (14.3)
Change in trade and other receivables                                                    (11.5)                       (12.3)                      (17.3)
Change in trade and other payables                                                          4.1                         2.9                         13.3
CASH GENERATED FROM OPERATIONS                                                            (9.0)                       (12.4)                      (34.2)
Interest received                                                                           0.1                            -                            0.8
Interest paid                                                                             (4.5)                        (2.8)                        (8.1)
Interest element of finance lease rental payments                                         (0.2)                            -                        (0.5)
Income tax paid                                                                           (0.3)                        (0.6)                        (1.2)
NET CASH FROM OPERATING ACTIVITIES                                                       (13.9)                       (15.8)                      (43.2)
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of property, plant and equipment                                         1.4                            -                            2.2
Movement in restricted cash                                                                 1.5                            -                        (3.2)
Acquisition of subsidiary, net of cash acquired                                           (0.9)                        (1.3)                        (6.1)
Acquisition of property, plant and equipment                                              (4.6)                       (13.6)                      (18.4)
Acquisition of intangible assets                                                              -                            -                        (5.1)
Acquisition of associates and joint ventures                                                  -                        (1.2)                        (1.2)
Proceeds from sale of subsidiary undertaking                                                  -                            -                            0.7
NET CASH FROM INVESTING ACTIVITIES                                                        (2.6)                       (16.1)                      (31.1)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issue of share capital                                                  25.5                          0.3                         18.9
Proceeds from the exercise of share options                                                 0.1                            -                            0.7
Loan advance                                                                              11.4                         49.5                         61.1
Repayment of borrowings                                                                   (8.5)                        (1.3)                      (10.6)
Payment of finance lease liabilities                                                      (2.9)                        (1.4)                        (3.7)
Non-controlling interest dividends paid                                                       -                            -                            0.2
NET CASH FROM FINANCING ACTIVITIES                                                        25.6                         47.1                         66.6
Net increase/(decrease) in cash and cash equivalents                                        9.1                        15.2                         (7.7)
Cash and cash equivalents at start of period                                              (2.7)                         3.9                             3.9
Foreign exchange movements                                                                (0.3)                         0.1                             1.1
CASH AND CASH EQUIVALENTS AT END OF THE
PERIOD                                                                                      6.1                        19.2                         (2.7)

Included in cash and cash equivalents of £12.5m, as prescribed in the statement of financial position, is £1.7m subject to restrictions of use, which
means it is not freely available.
Notes:
Note of preparation


1.   Reporting Entity


Lonrho Plc (the “Company”) is a company incorporated and domiciled in the United Kingdom.
                                                                                                               th
The financial statements included in this half yearly report were authorised for issue by the Directors on 10 August 2012.


2.   Basis of preparation


Statement of compliance
The annual financial statements of the Group are prepared in accordance with IFRSs as adopted by the EU. The condensed set of
financial statements included in this half yearly report has been prepared in accordance with IAS34 and the recognition and
measurement requirements of IFRSs as adopted by the EU.


The financial information is unaudited, and has not been reviewed by the Company’s auditors, and does not constitute the
Company’s statutory accounts within the meaning of Section 434 of the Companies Act 2006.


The comparative figures for the fifteen month period ended 31 December 2011 are not the Company’s statutory accounts for that
financial year. Those accounts have been reported on by the Company’s auditors and delivered to the Registrar of Companies. The
report of the auditors was (i) unqualified, (ii) did not include a reference to any matters to which the auditors drew attention by way of
emphasis without qualifying their report, and (iii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.
Due to the change in the Company’s year end to 31 December comparatives for the six months to 30 June 2011 are not available.
The Directors have accordingly included comparative information for the six months ended 31 March 2011 and the 15 months ended
31 December 2011. The Directors do not consider that there are material seasonal variances that impact the comparison of the two
six month periods presented.


Going Concern
Although the current ongoing economic conditions create uncertainty, the Group’s forecasts and projections, taking account of
reasonably possible changes in trading performance, together with mitigation actions that are within management’s control, show
that the Group is expected to be able to operate within the level and covenant conditions of its debt facilities. As such, these interim
financial statements are prepared on the going concern basis. There have been no significant changes in estimates in the current
period.


3.   Significant accounting policies


The accounting policies applied by the Group in these condensed consolidated interim financial statements are substantially the
same as those applied by the Group in its consolidated financial statements for the six months to 30 June 2012. Whilst there have
been changes to standards which become applicable for the period ended 30 June 2012, none have been assessed as having a
significant impact on the Group.
(a)   Basis of consolidation
The consolidated financial statements incorporate the financial statements of Lonrho Plc, its subsidiaries, associates and jointly
controlled entities.


Subsidiaries


Subsidiaries are entities controlled by Lonrho Plc. Control is achieved where Lonrho Plc (the Company) has the power to govern the
financial and operating policies of an investee entity so as to obtain benefits from its activities.


The portion of a non-controlling interest is stated as the non-controlling interest’s proportion of the fair values of the assets and
liabilities recognised. Subsequently, losses applicable to the non-controlling interest in excess of the non-controlling interest in the
subsidiary’s equity are allocated against the interests of the Group except to the extent that the non-controlling interest has a binding
obligation and is able to make an additional investment to cover the losses. Future profits attributable to the non-controlling interest
are not recognised until the unrecognised losses have been extinguished.


The results of entities acquired or disposed of during the period are included in the consolidated income statement from the effective
date of acquisition or up to the effective date of disposal, as appropriate. Negative goodwill recognised on acquisition is recognised in
the income statement at the effective date of acquisition.


Investments in associates and jointly controlled entities


Associates are those entities in which the Group has significant influence but not control over the financial and operating policies.
Significant influence is presumed to exist when the Group holds between 20% and 50% of the voting power of another entity. Jointly
controlled entities are those entities over whose activities the Group has joint control together with other parties, established by
contractual agreement and requiring joint consent for strategic financial and operating decisions. Investments in associates and
jointly controlled entities are accounted for using the equity method. The consolidated financial statements include the Group’s share
of the profit or loss and other comprehensive income of the equity accounted investees, after adjustments to align the accounting
policies with those of the Group, from the date that significant influence or joint control commences until the date that significant
influence or joint control ceases.

(b)   Non-GAAP measures

Following a review of key performance indicators used by the directors and consultations with key stakeholders, the Directors have
revised the key non-GAAP profit measure used to monitor performance of the business. From 1st January 2012 the key non-GAAP
profit measure used by the board is Net operating profit which is defined as Operating profit before amortisation of acquired
intangible assets and share based payment charges less net finance charges. The Directors believe that this measure best reflects
the trading performance of the group.


4.    Earnings per share


Basic earnings per share are calculated based on the weighted average number of ordinary shares outstanding during the period.
Diluted loss per share is based upon the weighted average number of shares in issue throughout the year, adjusted for the dilutive
effect of potential ordinary shares. The potential dilutive ordinary shares in issue are employee share options and the equity
conversion element of the convertible bond.
5.   Capital management


Given the current global financial crisis, the Directors are carefully monitoring cash resources within the Group and have instigated a
number of initiatives to ensure funding will be available for planned projects. In January 2012 Lonrho announced a placing of new
ordinary shares in the capital of the Company at 10 pence per share to raise gross proceeds of £26.9m.


6.   Segmental reporting


The Chief Operating Decision Maker is deemed to be the Executive Committee, which monitors the results of the business segments
to assess performance and make decisions about the allocation of revenues. Segment performance is evaluated on both revenue
and operating profit/ (loss).
Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a
reasonable basis. Unallocated items comprise mainly interest corporate assets and expenses.
Segment capital expenditure is the total cost incurred during the period to acquire segment assets that are expected to be used for
more than one period.
There is no inter-segment revenue.


Business Segments


The Group has four ongoing reportable segments which are organised around the basis of products and services which they provide:
?    Agribusiness
?    Infrastructure
?    Support services
?    Hotels


The Group has not aggregated any operating segment in arriving at this analysis.
              th
From the 29 June 2012, Transportation is no longer considered a reportable segment as it was transferred to a jointly controlled
entity and is consolidated as such using the equity method. Accordingly, for the purposes of clarity, segmental information is provided
including sub-totals of the four ongoing reportable segments as well as the detail required under IFRS8, Segmental Reporting.
6.Segmental reporting (continued)


                                                                                                 Unaudited 6 months to 30 June 2012



                                                                                                              Continuin         Dis-   Total
                                                                                         Core                         g   continued
                                  Agri-       Infra-   Support                      Operating       Trans-    operation   operation
                              business    structure    Services   Hotels   Other     divisions    portation           s            s
                                   £m           £m          £m       £m       £m           £m           £m          £m           £m       £m
EXTERNAL REVENUE                  72.7         10.9        14.0      5.1        -       102.7         20.2       122.9             -   122.9
Segment result                     6.3          0.5         1.3    (0.3)    (3.1)          4.7        (8.2)       (3.5)        (0.1)    (3.6)
Amortisation                      (0.7)            -          -        -        -        (0.7)        (0.5)       (1.2)            -    (1.2)
Share based payments                  -            -          -        -    (0.8)        (0.8)            -       (0.8)            -    (0.8)
expense
OPERATING                          5.6          0.5         1.3    (0.3)    (3.9)         3.2         (8.7)       (5.5)        (0.1)    (5.6)
(LOSS)/PROFIT AFTER
FINANCING
Share of results of                   -            -          -        -    (3.1)        (3.1)            -       (3.1)            -    (3.1)
associates
Share of results of jointly                                                 (1.3)        (1.3)            -       (1.3)            -    (1.3)
controlled entity
Gain on contribution of               -            -          -        -    33.9         33.9             -       33.9             -    33.9
subsidiary to jointly
controlled entity
Share of results of other             -            -          -        -    (0.2)        (0.2)            -       (0.2)            -    (0.2)
investments
Income tax charge                    -            -           -        -    (0.2)        (0.2)            -       (0.2)            -    (0.2)
PROFIT/(LOSS) FOR                  5.6          0.5         1.3    (0.3)    25.2         32.3         (8.7)       23.6         (0.1)    23.5
THE PERIOD
Net finance income/               (1.0)       (0.3)         0.1    (0.4)    (1.6)        (3.2)        (1.3)       (4.5)            -    (4.5)
(expense)
                                                                   Unaudited 6 months to 31 March 2011




                                                                                                      Continuin         Dis-
                                                                                 Core                         g   continued
                          Agri-       Infra-   Support                      Operating       Trans-    operation   operation
                      business    structure    Services   Hotels   Other     divisions    portation           s            s   Total
                            £m           £m         £m       £m       £m            £m          £m          £m           £m      £m
EXTERNAL REVENUE          31.6           7.4        7.8      4.2        -         51.0        10.1         61.1            -   61.1
Segment result              7.4        (1.7)        0.5    (0.4)    (5.1)           0.7       (3.2)       (2.5)        (0.2)   (2.7)
Amortisation              (0.4)            -          -        -        -         (0.4)           -       (0.4)            -   (0.4)
OPERATING                   7.0        (1.7)        0.5    (0.4)    (5.1)           0.3       (3.2)       (2.9)        (0.2)   (3.1)
(LOSS)/PROFIT AFTER
FINANCING
Share of results of
associates                    -            -          -        -      0.2          0.2            -         0.2            -     0.2
Income tax charge             -            -          -        -    (0.4)        (0.4)            -       (0.4)            -   (0.4)
PROFIT/(LOSS) FOR
THE PERIOD                 7.0        (1.7)         0.5    (0.4)    (5.3)          0.1        (3.2)       (3.1)        (0.2)   (3.3)
Net finance income/
(expense)                     -       (0.8)         0.1    (0.2)    (1.2)        (2.1)        (0.6)       (2.7)            -   (2.7)
                                                                                               Audited 15 months to 31 December 2011


                                                                                                            Continuin         Dis-
                                                                                       Core                         g   continued
                                Agri-       Infra-   Support                      Operating       Trans-    operation   operation
                            business    structure    Services   Hotels   Other     divisions    portation           s            s     Total
                                 £m           £m          £m       £m      £m            £m           £m          £m           £m       £m
EXTERNAL REVENUE                94.5        21.8        25.1     11.5         -       152.9         35.5       188.4          0.2      188.6

Segment result                  33.1             -        1.4      3.1   (16.9)        20.7        (11.1)         9.6        (1.1)       8.5
Amortisation                    (1.0)       (0.1)       (0.4)        -        -        (1.5)        (0.6)       (2.1)            -     (2.1)
Share based payments
expense                             -            -          -        -    (0.7)        (0.7)            -       (0.7)            -     (0.7)
OPERATING
(LOSS)/PROFIT AFTER
FINANCING                       32.1        (0.1)         1.0      3.1   (17.6)        18.5        (11.7)         6.8        (1.1)       5.7
Share of results of
associates                          -            -          -        -    (5.9)        (5.9)            -       (5.9)            -     (5.9)
Share of results of other
investments                         -            -          -        -      1.0          1.0            -         1.0            -       1.0
Income tax charge                   -            -          -        -    (0.3)        (0.3)            -       (0.3)            -     (0.3)
PROFIT/(LOSS) FOR                                                                                                 1.6
THE PERIOD                      32.1        (0.1)         1.0      3.1   (22.8)        13.3        (11.7)                    (1.1)     (0.5)
Net finance
income/(expense)                (2.9)       (0.8)         0.8    (0.2)    (4.5)        (7.6)        (1.8)       (9.4)            -     (9.4)
                                                                                                Unaudited 30 June 2012



                                                                                                     Core                   Continuin          Dis-
                                               Agri-       Infra-   Support                     Operating      Trans-               g    continued
                                           business    structure    Services   Hotels   Other    divisions   portation     operations   operations    Total
                                                £m           £m          £m       £m      £m           £m          £m             £m            £m     £m
Segment operating assets                      128.5        83.1        14.9     51.3        -       277.8            -         277.8           0.2    278.0
Investment in associates                          -           -           -        -      1.2         1.2            -           1.2             -      1.2
Other investments                                 -           -           -        -      3.5         3.5            -           3.5             -      3.5
Investment in jointly controlled
entities                                           -            -          -        -       -            -       54.3           54.3              -    54.3
Unallocated assets/interest bearing
assets                                            -           -           -        -     15.5        15.5           -           15.5             -     15.5
TOTAL ASSETS                                  128.5        83.1        14.9     51.3     20.2       298.0        54.3          352.3           0.2    352.5
Segment operating liabilities                  50.6        14.3         9.1     15.8        -        89.8           -           89.8           0.1     89.9
Unallocated liabilities/interest bearing
liabilities                                       -           -            -       -     52.8        52.8            -          52.8             -     52.8
TOTAL LIABILITIES                              50.6        14.3          9.1    15.8     52.8       142.6            -         142.6           0.1    142.7
Depreciation of segment assets                  1.3         1.7          0.3     0.7      0.1         4.2            -           4.2             -      5.3
Capital expenditure                             4.2         0.4          0.2     0.4      0.1         5.2            -           5.2             -      5.5




                                                                                                 Unaudited 31 March 2011




                                                                                                     Core                   Continuin          Dis-
                                               Agri-       Infra-   Support                     Operating      Trans-               g    continued
                                           business    structure    Services   Hotels   Other    divisions   portation     operations   operations    Total
                                                £m           £m          £m       £m      £m           £m          £m             £m            £m      £m
Segment operating assets                       58.8         83.4        12.5    25.0        -       179.7        33.2          212.9            0.3   213.2
Investment in associates                           -            -          -        -    12.9         12.9           -           12.9             -    12.9
Other investments                                  -            -          -        -     0.2          0.2           -            0.2             -     0.2
Unallocated assets/interest bearing                -            -          -        -    24.3         24.3           -           24.3             -    24.3
assets
TOTAL ASSETS                                   58.8        83.4        12.5     25.0     37.4       217.1        33.2          250.3           0.3    250.6
Segment operating liabilities                  22.2        15.2         6.8     11.0        -        55.2        18.8           74.0           0.5     74.5
Unallocated liabilities/interest bearing          -           -           -        -     49.7        49.7           -           49.7             -     49.7
liabilities
TOTAL LIABILITIES                              22.2        15.2          6.8    11.0     49.7       104.9        18.8          123.7           0.5    124.2
Depreciation of segment assets                  0.7         1.6          0.2     0.6      0.1         3.1         0.2            3.3             -      3.3
Capital expenditure                             1.2         0.9          0.2     0.3        -         2.6        13.5           16.1             -     16.1
                                                                                        Audited 31 December 2011

                                                                                                                                Continuin
                                                                                                                                        g
                                                                                                                               operations
                                                                                                         Core                                      Dis-
                                               Agri-       Infra-   Support                         Operating        Trans-                  continued
                                           business    structure    Services   Hotels       Other    divisions     portation                operations    Total
                                                £m           £m          £m       £m          £m           £m            £m          £m             £m      £m
Segment operating assets                      112.2         82.1        15.3    46.4            -       256.0          53.0        309.0            0.3   309.3
Investment in associates                           -            -          -        -         6.9          6.9             -         6.9              -     6.9
Other investments                                  -            -          -        -         1.7          1.7             -         1.7                    1.7
Unallocated assets/interest bearing                -            -          -        -        13.8         13.8             -        13.8              -    13.8
assets
TOTAL ASSETS                                  112.2        82.1        15.3     46.4         22.4       278.4          53.0        331.4           0.3    331.7
Segment operating liabilities                  47.1        13.2         9.0     16.9                     86.2          39.5        125.7           0.1    125.8
Unallocated liabilities/interest bearing          -           -           -        -         50.2        50.2             -         50.2             -     50.2
liabilities
TOTAL LIABILITIES                              47.1        13.2          9.0    16.9         50.2       136.4          39.5        175.9           0.1    176.0
Depreciation of segment assets                  2.3         4.1          0.6     1.5          0.2         8.7           1.2          9.9             -      9.9
Capital expenditure                             6.4         4.7          0.8     0.5          0.1        12.5          30.9         43.4             -     43.4
7.   Acquisition of subsidiaries

With effect from 17 January 2012, the Group acquired 100% of the issued share capital of LonAgro Tanzania Limited for a
consideration of US$1.4 million (£0.9 million). Lonagro Tanzania is based in Dar es Salaam, the commercial hub of Tanzania, and
has the exclusive John Deere distributorship for Tanzania.


                                                                                                                        th
The transaction has been accounted for by the purchase method of accounting. The fair value of the net assets at 17 January
2012 is set out below:

                                                        Pre-acquisition carrying        Fair value adjustment       Values recognised
                                                                          value                 on acquisition          on acquisition
                                                                              £m                           £m                          £m
Inventory                                                                     0.1                             -                        0.1
Intangible related to franchise                                                 -                          0.8                         0.8
NET IDENTIFIABLE ASSETS AND LIABILITIES                                       0.1                          0.8                         0.9
Consideration paid                                                              -                             -                        0.9
GOODWILL ON ACQUISITION                                                         -                             -                          -




8.   Transfer of subsidiary to jointly controlled entity

On the 29 June 2012 Lonrho Plc transferred its Transportation division headed by Lonrho Aviation BVI to a jointly controlled entity
Rubicon Diversified Investments Plc (‘Rubicon’), renamed FastJet Plc on the 6 August 2011, with a market value of £55.6m
represented by 1,160,037,455 ordinary shares in Rubicon at 4.8p per share resulting in a 73.6% equity interest in Rubicon
immediately post the transaction. Due to the terms of the articles of association, shareholder agreements in place and board
constitution the Directors do not consider that Lonrho has control of Rubicon. The Directors consider that, due to the composition of
the board of directors of Rubicon, Lonrho controls this entity jointly with easyGroup and as such the Group’s interest in Rubicon is
consolidated as a jointly controlled entity. In accordance with IFRS3 (2008) the interest in Rubicon is recognised at its fair value
and the resulting gain is recognised in the income statement. The assets and liabilities transferred to Rubicon and gain at the 29
June 2012 are set out in the table below:
                                                                                                                   29 June 2012

                                                                                                                             £m
 ASSETS
 Goodwill                                                                                                                  0.1
 Other intangible assets                                                                                                   3.5
 Property, plant and equipment                                                                                            30.7
 Inventories                                                                                                               2.8
 Trade and other receivables                                                                                              11.7
 TOTAL ASSETS                                                                                                             48.8
 LIABILITIES
 Loans and borrowings                                                                                                     (1.1)
 Deferred tax                                                                                                             (0.2)
 Obligations under finance leases                                                                                        (19.3)
 Trade and other payables                                                                                                (15.3)
 Bank overdraft (Net)                                                                                                     (3.4)
 TOTAL LIABILITIES                                                                                                       (39.3)
 NET ASSETS                                                                                                                9.5


 Fair value of jointly controlled entity                                                                                  55.6
 Net assets                                                                                                               (9.5)
 Non controlling interests                                                                                                (8.0)
 Gain on contribution of subsidiary to jointly controlled entity                                                          38.1
 Liabilities retained                                                                                                     (1.5)
 Costs relating to transaction                                                                                            (2.7)
 Gain on contribution of subsidiary to jointly controlled entity after costs relating to
 transaction                                                                                                              33.9




9.   Interest bearing loans and borrowings
This note provides information about the contractual terms of the Group’s interest-bearing loans and borrowings.


                                                                                    Unaudited      Unaudited             Audited
                                                                                   6 months to    6 months to       15 months to
                                                                                      30 June       31 March        31 December
                                                                                         2012           2011               2011
                                                                                           £m             £m                 £m
NON-CURRENT LIABILITIES
Finance lease liabilities                                                                   0.9         10.8                 18.6
Unsecured bank loans                                                                       27.0         17.4                 27.9
Convertible bond                                                                           43.9         42.6                 44.4
Shareholder loans                                                                           3.1          3.0                  3.6
Other loans                                                                                 0.2            -                  0.8
                                                                                           75.1         73.8                 95.3
CURRENT LIABILITIES
Unsecured bank loans                                                                        2.5           3.9                 2.9
Secured bank loans                                                                          7.1             -                   -
Current portion of finance lease liabilities                                                1.1           0.9                 4.9
Other loans                                                                                 0.8             -                 0.1
Bank overdraft                                                                              4.7           4.7                12.2
                                                                                           16.2           9.5                20.1
10. Net finance expense


                                                                 Unaudited             Unaudited           Unaudited
                                                                6 months to           6 months to       15 months to
                                                                   30 June              31 March        31 December
                                                                      2012                  2011               2011
                                                                        £m                    £m                 £m
Bank interest receivable                                                0.1                     -                0.8
Foreign exchange gain                                                   3.8                   1.5                6.0
FINANCE INCOME                                                          3.9                   1.5                6.8
Interest on loans repayable within five years and overdrafts          (4.5)                 (2.6)              (8.6)
Foreign exchange loss                                                 (3.7)                 (1.6)              (7.1)
Interest on finance leases                                            (0.2)                 (0.1)              (0.5)
FINANCE EXPENSE                                                       (8.4)                 (4.3)             (16.2)
NET FINANCE EXPENSE                                                   (4.5)                 (2.8)              (9.4)




11. Investments in associates, jointly controlled entities and other investments

Investment in associates

                                                                  Unaudited            Unaudited             Audited
                                                                6 months to           6 months to        15 months to
                                                               30 June 2012        31 March 2011    31 December 2011
                                                                         £m                  £m                   £m
At the beginning of the period                                           6.9                10.3                10.3
Additions to associates                                                    -                 2.5                  2.5
Share of loss after taxation                                               -                    -               (1.6)
Provisions in the period                                               (3.5)                    -               (4.3)
Reversal of provisions in the period                                                         0.1
Disposal of associate                                                  (0.1)
Revaluation of associate                                                 0.3                   -                    -
Transfer from associate to investments                                 (2.4)                   -                    -
At the end of the period                                                 1.2                12.9                  6.9


Other Investments



                                                                  Unaudited            Unaudited             Audited
                                                                6 months to           6 months to        15 months to
                                                               30 June 2012        31 March 2011    31 December 2011
                                                                         £m                   £m                  £m
At the beginning of the period                                           1.7                  0.6                 0.6
Additions                                                                  -                    -                 0.1
Revaluation of investment                                              (0.2)                    -                 1.4
Impairment charge                                                          -                (0.4)               (0.4)
Transfer from associate to investments                                   2.4                    -                   -
Transfer from other investments to jointly controlled entity           (0.4)                    -                   -
At the end of the period                                                 3.5                  0.2                 1.7
Investment in jointly controlled entities

                                                                       Unaudited                   Unaudited                Audited
                                                                     6 months to                  6 months to           15 months to
                                                                    30 June 2012               31 March 2011       31 December 2011
                                                                              £m                         £m                      £m

At the beginning of the period                                                   -
Transfer from subsidiary (Note 8)                                            55.6                            -                          -
Share of loss for the period                                                 (1.3)                           -                          -
Investment in jointly controlled entities                                    54.3                            -                          -


12. Share based payments

In accordance with IFRS 2 ‘Share-based payments’ share options granted during the period have been measured at fair value at the
date of grant with the fair spread over the vesting period. The fair value of the options granted has been estimated at the date of
grant using the Black-Scholes option-pricing model.



13. Note to the cash flow statement

                                                                                  Unaudited           Unaudited                Audited
                                                                                 6 months to         6 months to          15 months to
                                                                                    30 June            31 March           31 December
                                                                                       2012                2011                  2011
                                                                                         £m                  £m                    £m
Depreciation of property, plant and equipment                                            5.3                 3.3                   9.9
Amortisation of intangible assets                                                        1.2                 0.4                   2.1
(Loss)/ Gains on investments                                                             0.2                   -                 (1.0)
Foreign exchange (gain)/ loss                                                          (0.1)                   -                   1.1
Share based payment expense                                                              0.8                   -                   0.7
Finance income                                                                         (0.1)                 2.8                 (0.8)
Finance expense                                                                          4.7                   -                   9.1
Profit on disposal of subsidiary                                                           -                   -                 (0.5)
Share of results of associates and other investments                                     3.2               (0.2)                   5.9
Gain arising on fair valuation of biological assets                                    (3.7)               (4.9)                (27.4)
Gain on acquisition                                                                        -                   -                (15.8)
Gain on contribution of subsidiary to jointly controlled entity                       (33.9)                   -                     -
Share of results of joint controlled entities                                            1.3                   -                     -
Loss on sale of property, plant and equipment                                            1.0                   -                     -
Income tax expense                                                                       0.2                 0.4                   0.3
ADJUSTMENTS TO PROFIT FOR THE PERIOD                                                  (19.9)                 1.8                (16.4)


14. Related party transactions

Transactions between the Company and its subsidiaries, which are related parties, have been eliminated on consolidation and are
not disclosed in this note.


Full details of the Group’s other related party transactions and balances are given in the Group’s financial statement for the period
ended 31 December 2011. The only material change in these relationships since 1 January 2012 is Lonrho’s relationship with
LonZim Plc. LonZim Plc changed its name to Cambria Africa Plc and Lonrho no longer has any board representation. Cambria Africa
Plc is now treated as an investment rather than an associate.

15. Post balance sheet events

There have been no material post balance sheet events.
16. Cautionary statement
The interim results announcement contains forward looking statements. These have been made by the Directors in good faith based
on the information available to them up to the time of their approval of this report. The Directors can give no assurance that these
expectations will prove to have been correct. Due to the inherent uncertainties, including both economic and business risk factors
underlying such forward looking information, actual results may differ materially from those expressed or implied by these forward
looking statements. The Directors undertake no obligation to update any forward looking statements whether as a result of new
information, future events or otherwise.


There are a number of potential risks and uncertainties which could have a material impact on the Group’s performance over the
remainder of the financial year and could cause actual results to differ materially from expected and historical results. These include
but are not limited to, competitor activity and competition risk, changes in foreign exchange and commodity prices and the political
and economic risks of operating in Africa. Details of the key risks facing the Group’s businesses at an operational level are included
on pages 10 to 15 of the Group’s Report and Accounts for the 15month period to 31 December 2011 which is available on the
Group’s website (www.lonrho.com). Details of further potential risks and uncertainties arising since the issue of that document are
included within the operating review as appropriate.
 17. Capital and reserves
 Group reconciliation of movement in capital and reserves

                                                      Attributable to equity holders of the parent
                                                                             Share                                                  Non-
                                    Share        Share    Translation              Revaluation       Retained    Other
                                                                            option                                       Total controlling Total equity
                                    capital   premium        reserve                  reserve        earnings reserves
                                                                           reserve                                        £m     interest          £m
                                       £m          £m             £m                       £m             £m       £m
                                                                               £m                                                      £m

At 1 October 2010                     11.7       138.0          (8.7)           4.7            3.3     (36.1)    (5.5)   107.4        20.3       127.7
Share capital issued                   1.2            -             -             -              -          -     17.7    18.9           -        18.9

Share based payments charge               -                         -           0.7              -          -        -     0.77          -           0.7

Share options exercised                0.1         0.6              -             -              -          -        -     0.7           -           0.7

Costs associated with share
                                          -       (0.4)             -             -              -          -        -   (0.4)           -        (0.4)
issues

Non-controlling interest                  -           -             -             -              -          -        -       -       (0.2)        (0.2)
dividends
Profit/(loss) for the period              -           -             -             -              -        6.0        -     6.0       (5.5)           0.5
Subsidiaries acquired                     -           -             -             -              -          -        -       -         2.2           2.2
Subsidiaries disposed                     -           -             -             -              -          -        -       -       (0.2)        (0.2)
Transfer between accounts                 -           -             -             -          (0.1)        0.1        -       -           -             -
Revaluation                               -           -             -             -            4.2          -        -    4.2          3.0           7.2
Non-controlling interest put
                                          -           -             -             -              -          -    (2.3)   (2.3)           -        (2.3)
option
Capital element of Convertible
                                          -           -             -             -              -          -      1.1    1.1            -           1.1
Bond

Elimination of non-controlling            -           -             -             -              -      (0.6)        -   (0.6)         0.6             -
interest

Foreign exchange                          -           -         (1.7)             –            1.7      (0.5)        -   (0.5)        0.3        (0.2)
translation
AT 31 DECEMBER 2011                   13.0       138.2         (10.4)           5.4            9.1     (31.1)     11.0   135.2        20.5       155.7
At 1 January 2012                     13.0       138.2         (10.4)           5.4            9.1     (31.1)     11.0   135.2        20.5       155.7
Share capital issued                   2.6            -             -             -              -          -     22.9    25.5           -        25.5

Share based payments charge               -           -             -           0.8              -          -        -     0.88          -           0.8

Share options exercised                0.1         0.2              -             -              -          -        -     0.3           -           0.3

Costs associated with share               -       (2.2)             -           1.1              -          -        -   (1.1)           -        (1.1)
issues

Profit/(loss) for the period              -           -             -             -              -       25.7             25.7       (2.2)        23.5

Elimination of non-controlling            -           -             -             -              -          -        -       -         8.0           8.0
interest

Foreign exchange                          -           -         (2.7)             -              -      (0.1)        -   (2.8)       (0.1)       (2.9)
translation
AT 30 JUNE 2012                       15.7       136.2         (13.1)           7.3            9.1      (5.5)     33.9   183.6        26.2       209.8

 On the 3 January 2012 269,498,795 new ordinary shares of 1p each were issued by placing an open offer of shares. The placing structure utilised
 attracted merger relied under Section 612 of the Companies Act 2006, resulting in a credit to the Merger reserve (included in Other reserves) of
 £22.9m. Subsequent internal transactions required to complete the placing structure have resulted in this becoming distributable. At 30 June 2012
 the company has £40.6m of such distributable reserves and net distributable reserves of £28.4m.
18.            Responsibility statement
      The interim results announcement complies with the Disclosure and Transparency Rules (“the DTR”) of the Financial Services
      Authority in respect of the requirement to produce a half yearly financial report.
      The Directors confirm that to the best of their knowledge:


      ?    This financial information has been prepared in accordance with IAS 34 as adopted by the EU;
      ?    This interim results announcement includes a fair review of the important events during the 6 months ended 30 June 2012 and
           their impact on the financial information, and a description of the principal risks and uncertainties for the remaining part of the
           period as required by DTR 4.2.7R; and
      ?    This interim results announcement includes a fair review of the disclosure of related party transactions and changes therein as
           required by DTR 4.2.8R.




      Geoffrey White
      Director and Chief Executive Officer
          th
      10 August 2012
      On behalf of the Board


      10 August 2012

      South African Sponsor
      Java Capital

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