Lonrho – 7p

4 February 2013 – trading update

A disappointing trading update from the Africa focused group has seen its share price fall sharply.  Although the group continued its development programme last year, the final quarter to 31 December saw slower progress in certain areas and a net operating loss of between £3m and £5m is now expected for the year as a whole.  Nevertheless, the group has now withdrawn from low margin and/or risky businesses and it looks well-placed to benefit from further growth in 2013.  Many of the issues of the final quarter were timing related and revenues will simply come in during 2013 instead.  Although the shares are not without risk, we believe that the fall in the share price has provided an opportunity for investors to BUY.

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