Lonrho (AIM: LONR), the conglomerate with a structured portfolio of African investments, is pleased to announce its results for the year ended 30 September 2007.
At the Extraordinary General Meeting held on 24 February 2006, shareholders gave the Board a new mandate to commence the rebuilding of Lonrho and the re-establishment of a significant presence in the continent of Africa by investing in entities operating in a broad range of sectors. The current global interest in Africa and the opportunities that exist there continue to make this a coherent and logical strategy. This strategy has, to date, resulted in Lonrho investing in a port, shipping, aviation, water bottling plants, hotels, information technology businesses and natural resources.
The results for the year, as expected, reflect the fact that the businesses invested in were either new start-up ventures or established businesses which required resource in the form of cash and management. For the period to 30 September 2007 the Company has:
- Increased its turnover 229% to £11.2m (up from £3.4m in 2006).
- Incurred a loss of £15.5m (2006: £0.2m). The Company remains in an investment and development phase.
- Raised £16.46m through the issue of 51,449,381 ordinary shares of 1p each at a price of 32p per share in May 2007, raised £41.47m in placements since the year end to fund further acquisitions and expansion of existing businesses.
- Increased its share price by 66%, up from 26.25p at the start of the period to 43.5p at the end of the period.
Lonrho currently holds £18.2m cash at bank.
Lonrho's core business sectors - transportation, infrastructure, support services, hotels and natural resources - have continued to develop through acquisition and the expansion of existing businesses within the Group.
During the year to 30 September, the Company has achieved the following:
Luba Freeport Limited ("Luba Freeport") (63% holding)
• With Lonrho's investment, Luba Freeport has developed a new 70 metre extension to the existing quay. This was completed on time and on budget, and became operational in November 2007. To meet demand, a further 83 metres is currently under construction, which is due for completion in mid-2008, giving the port 350 metres of usable quayside frontage.
SA Independent Liner Services (Pty) Ltd ("SAILS")(66.7% holding)
- In July 2007 Lonrho acquired an initial 45% of SAILS and assumed Board control. Since the year end, Lonrho has increased its holding to 66.7%.
- In 2007, SAILS expanded its fleet from 2 to 6 ships in line with increased demand for services with further expansion plans for the fleet in 2008.
Five Forty Aviation Limited ("Fly540")(49% holding)
- Fly540 has grown to become the second largest carrier in Kenya, behind the national airline and has commenced international flights to Sudan, Uganda and Tanzania.
- In October 2007, Fly540 agreed to establish its second regional hub in Luanda, Angola. This is now under development and will commence flights to fifteen domestic airports in mid-2008 with ten aircraft.
Lonrho Air (BVI) Limited ("Lonrho Air")(100% holding)
- Lonrho Air currently owns two ATR 42-320 aircraft, which are on lease to Fly540, and has options to acquire 10 new ATR 72-500 aircraft which will be 85% financed.
Norse Air Limited ("Norse Air")
- Because of a dispute with the management and the effect that this had on the business, Lonrho has made the decision to fully provide against the carrying value of its investment in Norse Air, effectively excluding it from Lonrho Group operations, as at 30 September 2007. Please refer to the Chief Executive's Review below for further details.
- Since the acquisition of 100% of Swissta Holdings Limited in April 2007, which owns a plant in Maputo, Mozambique, Swissta brand water has become one of the market leaders of bottled water in Maputo.
- Lonrho Springs has been established to apply the business model throughout the continent with water bottling plants now under development in South Africa, the DRC and Angola.
Sociedade Comercial Bytes & Pieces, Limitada ("Bytes & Pieces")(65% holding)
- Lonrho acquired 65% of Bytes & Pieces based in Mozambique with plans to replicate the business model throughout Africa. The expansion outside Mozambique has begun under the name of Complete Enterprise Solutions (CES) and has established an operational office and sales force in Johannesburg.
• The Hotel Cardoso, based in Mozambique, has seen a 22% increase in room revenue over the past year and is currently undergoing a major refurbishment due to be completed during 2008.
Further Hotel Opportunities
- A hotel project is underway in Lubumbashi in the DRC, and further opportunities have been identified in Angola, Ivory Coast and Sudan.
Natural Resources Lonrho Mining Limited ("Lonrho Mining")(21.64% holding)
- Lonrho Mining has recently entered into a joint venture agreement with Endiama, the national diamond company of Angola and exclusive concessionary for diamond mining rights, on the 3,000 square kilometres Lulo Diamond Concession (" Lulo").
- Lulo contains numerous identified kimberlite pipes and two rivers with extensive terrace gravels. The artisanal miner activity in these rivers indicates that the gravels are diamond bearing.
LonZim Plc ("LonZim") - Post year end
- LonZim was established as a separate company to invest in projects in Zimbabwe and those related to the Zimbabwean economy. LonZim was listed on the London AIM stock exchange in December 2007 and raised £29 million. LonZim has subsequently made a number of key acquisitions in the support services, telecommunications sectors and commercial property in the Beira Corridor in Mozambique.
- Lonrho Plc received a free carry interest of 20% of the current issued share capital of LonZim (current market value £7.5 million) and charges a fee of 2 per cent of funds invested.
David Lenigas, Executive Chairman of Lonrho commented:
"The strength of Lonrho is founded on its name and long standing legacy across the continent, where Lonrho as a brand is associated with project delivery and development. We continue to build on this strength by the recruitment of highly skilled and motivated individuals, who have detailed knowledge and experience of working in Africa.
"Lonrho has made a good start towards rebuilding an African wide conglomerate. From an initial single asset in Mozambique, the Company has developed its investment strategy and continues to establish and improve its business models. The key building blocks have been soundly established and the Group now operates in five core business sectors, operating across fourteen countries. "
The full Report & Accounts are now available on the Company's website www.lonrho.com and are expected to be posted to shareholders by Monday 31st March 2008.
- Lonrho +44 (0) 20 7016 5105
- David Lenigas, Chief Executive +44 (0) 7881 825 378
- Emma de Borchgrave de Altena, Executive Director +44 (0) 7867 785 177
- Pelham Public Relations Charles Vivian +44 (0) 20 7743 6672, +44 (0) 7977 297 903
- James MacFarlane +44 (0) 20 7743 6375, +44 (0) 784 167 2831
- Collins Stewart Europe Limited Hugh Field +44 (0) 20 7523 8350 Jonny Sloan
27 March 2008
The African market place is booming, with sub-Saharan Africa achieving over 7% growth in Gross Domestic Product in 2007. Africa is creating some of the strongest individual economies in the World, driven by the extensive oil, gas and natural resources being developed.
From a political focus, Africa often features in the World's news headlines for its problems. Unfortunately, crisis, unrest and scandal are always preferred by the headline writers to political progress, economic growth, development and stability. However, as a Group directly engaged and doing business across the continent, we are seeing evidence of significant progress and that socio-political stability in Africa continues to improve.
At the Extraordinary General Meeting held on 24 February 2006, shareholders gave the Board the mandate to commence the rebuilding of Lonrho and the re-establishment of a significant presence in the continent of Africa by investing in entities operating in a broad range of sectors. The current global interest in Africa and the opportunities that exist there continue to make this a coherent and logical strategy.
The strength of Lonrho is founded on its name and long standing legacy across the continent, where Lonrho as a brand is associated with project delivery and development. We continue to build on this strength by the recruitment of highly skilled and motivated individuals, who have detailed knowledge and experience of working in Africa.
Lonrho invests in businesses that will enable and support the economies of Africa as they continue to grow. These range from the provision of safe travel and accommodation to infrastructure and transport supporting commerce, the import and delivery of the raw materials and the export of finished products. Fundamentals essential to economic progress.
As the Chief Executive Officer's Review of Operations illustrates, this strategy has, to date, resulted in Lonrho investing in a port, shipping, aviation, water bottling plants, hotels, information technology businesses and natural resources.
It is Lonrho's intention to develop strategic business units, and once tried and tested, roll-out each of its business units, as appropriate, across Africa.
The results for the year, as expected, reflect the fact that the businesses invested in were either new start-up ventures or established businesses which required resource in the form of cash and management.
During the year, the Group's turnover increased to £11.2 million (2006: £3.4 million). However, the Group remains in an investment and development phase, and thus incurred a loss of £15.5 million (2006: £0.2 million).
The Company's share price has shown considerable growth in the financial year, starting at 26.25p and finishing the year at 43.5p (+66%), demonstrating the market's support for the development of a pan-African conglomerate.
Lonrho invested a further £13.2 million during the year in Luba Freeport, which has funded the now completed 70 metre quay extension, warehousing, offices and handling equipment. Luba Freeport is expecting to move into operating profit, in line with our projections, during the first quarter of 2008.
Fly540, the Kenyan passenger airline, has, within twelve months of commencing operations, become the second largest carrier in Kenya, moving into operating profit during the first quarter of 2008.
Group turnover will significantly increase during 2008 with the roll-out of the Group's operations and as each business comes on stream, losses will reduce.
The management situation at Norse Air, which is more fully explained in the Chief Executives' Review of Operations, resulted in us instigating legal action against Norse Air and its non-Lonrho nominated Directors in December 2007. Your Board felt that this approach was necessary to protect the Group's interests. This legal action is currently ongoing. As a result, a provision of £4.4 million has been made to write off our investment in Norse Air, which has adversely affected the results of the year.
Lonrho has made a good start towards rebuilding an African wide conglomerate. From an initial single asset in Mozambique, the Company has developed its investment strategy and continues to establish and improve its business models. The key building blocks have been soundly established and the Group now operates in five core business sectors, operating across fourteen countries.
I would like to take this opportunity to thank shareholders for their continuing support in the rebuilding of Lonrho (placements of new shares both during the year and after the year end raised a net total of £57.93 million). I would also like to thank the Group's employees for all their hard work and endeavours in what are, sometimes, harsh environments and trying conditions.
CHIEF EXECUTIVE'S REVIEW
Director and Chief Executive Officer
27 March 2008
Over the past year Lonrho has grown and developed its business significantly and has driven forward the growth strategy which had been approved by shareholders in 2006, the continuation of which was approved by shareholders in 2007.
Lonrho remains focused on business opportunities throughout Africa and aims to provide the critical and core support and services necessary to enable businesses to operate, develop and grow.
Lonrho's core business sectors - transportation, infrastructure, support services, hotels and natural resources - have continued to develop through acquisition and the expansion of existing businesses within the Group.
During the year the Board of Directors was strengthened by the appointment of Jean Ellis as Finance Director and, in October 2007, Ambassador Frances Cook joined as a non-executive Director. Also in October, I was appointed a Director and promoted to Chief Executive Officer, having been Chief Operating Officer since May 2007. This has taken the Board to four executive and two non-executive Directors, all of whom have extensive experience and knowledge of working in Africa.
Since the year end, development of the corporate management team included the appointment of a new business analyst to assist the business development manager with the appraisal of new projects. A new financial analyst has also been recruited to increase the efficiency of reporting structures and to monitor budgetary control and variances.
In addition, operationally, a Country Manager was recruited for South Africa, based in Johannesburg. This role oversees the Group's Southern African operations and provides essential management continuity. A further senior executive has been employed as General Manager of Lonrho's expanding Port and Shipping Division, bringing with him forty years of experience in the port and shipping industry across Africa.
I am pleased to report that most of the acquisitions that Lonrho made in 2006 and 2007 are developing into strong business units. They have defined our core business sectors and have formed solid building blocks in each sector from which Lonrho can accelerate its growth.
The results for the year end are as anticipated, save for the provisions that were required in respect of Norse Air. Most of the investments made during 2007 were into start-up businesses or businesses which required resource in respect of cash and management. Lonrho's share of the loss after tax and minority interest was £15.5 million, which included a loss of £4.4 million in respect of the provision against the investment in Norse Air, as detailed below.
In addition, there was a charge of £2.6 million in respect of share options and share based payments to incentivise executives, employees and consultants. Whilst this is a charge to the Profit & Loss account, the net assets of the Group are not affected, the credit being transferred as movements on reserves in the Balance Sheet.
During 2008, Lonrho will continue to make strategic investments across Africa, in order to achieve future growth in shareholder value.
A review of operations follows.
Luba Freeport Limited ("Luba Freeport") (63% holding)
Luba Freeport, a venture in conjunction with the Government of Equatorial Guinea, is operating well and is developing as the foremost deepwater port in the Gulf of Guinea. Located on Bioko Island, it is strategically placed and services the rapidly expanding oil and gas industry in the region.
With Lonrho's investment, Luba Freeport has developed a new 70 metre extension to the existing quay. This was completed on time and on budget, and became operational in November 2007. To meet demand, a further 83 metres is currently under construction, which is due for completion in mid-2008, giving the port 350 metres of usable quayside frontage.
Since Lonrho's acquisition in May 2006, Luba Freeport has developed into one of the most efficient hubs for the offshore oil and gas industry in the Gulf of Guinea. The port has attracted the leading oil producers and service companies such as ExxonMobil, Schlumberger, Baker Hughes, MI Fluids, Nalco, Marathon, Noble Energy and Amerada Hess.
Further expansion of the facilities include the development of long stay apartments available to the companies operating from the port.
With this further extension of the quay, it is envisaged that the port will also become the main logistics centre for the region, with 20,000 square metres of land allocated to meet demand for pipe storage and distribution.
Luba Freeport is the only true, functioning, duty free zone in the Gulf of Guinea, where suppliers can import and export goods and stocks without incurring duties.
The offshore resources in the Gulf of Guinea continue to expand with on-going exploration and new block allocations from the Government of Equatorial Guinea, Cameroon, Gabon and Sao Tome. The future demand for the port and its expansion plans directly reflect the forecast growth in the oil and gas industries in this important region. The Gulf of Guinea currently supplies 10 - 12% of US oil imports and the US Government recently announced that it intends to increase this to 25%.
SA Independent Liner Services (Pty) Ltd ("SAILS") (66.7% holding)
Lonrho has spent some time evaluating the market for regular scheduled shipping services between the African markets and the rest of the world. This sector was seen as a fundamental core business for the Group.
The shipping market in Africa demonstrates better than average margins in relation to the worldwide shipping market. In July 2007, Lonrho acquired an initial 45% of SAILS, a South African company providing containerised shipping services. Lonrho is confident that, with the correct capacity and proper resources, SAILS can develop into a significant shipping line.
Since Lonrho's acquisition and the assumption of Board control, a further four, new, 1,100 TEU container vessels have been chartered for the fleet and 1,000 ' reefer' refrigerated containers added to the company's resources. This enables SAILS to access the higher margin markets for the transportation of chilled fresh produce from Africa to Europe, and medical supplies and other chilled cargoes from Europe to Africa.
Since the year end Lonrho has increased its stake in the company from 45% to 66.7% by supporting capital raisings by SAILS. The further funds have been utilised for working capital, the expansion and deployment costs for the larger fleet and relocation to a larger office. The increased capacity at SAILS has resulted in new contracts with a value of over US$14 million (£7 million).
Within the coming six months the fleet will be fully committed at six vessels and it is expected that further vessels will be chartered to expand SAILS' market share during 2008.
Five Forty Aviation Limited ("Fly540") (49% holding)
Fly540 meets a specific market requirement for aviation in Africa. Launched as a new airline in November 2006, Fly540 has grown to become the second largest carrier in Kenya next to the national airline. Initially servicing the domestic market, the airline has grown steadily, carrying over 20,000 passengers in the peak months. Having successfully established its domestic market, the airline has commenced its international scheduled roll-out from its Nairobi hub. It has now added flights to Sudan, Uganda and Tanzania.
With the successful track record of Fly540 in Kenya the expansion of the Fly540 concept to create a true pan-African airline is being implemented.
In October 2007, Fly540 agreed to establish its second regional hub in Luanda, Angola. This is now under development and will commence flights to fifteen domestic airports in mid-2008 with ten aircraft. This followed the signing of an exclusive Memorandum of Understanding in June 2007 between Lonrho and one of the largest internal investment companies in Angola to develop a new airline in Angola for the passenger, freight, leasing and charter markets.
Further regional hubs in Central and West Africa are under negotiation and planned for 2008/2009. As the key regional hubs become operational, initially servicing domestic destinations in each country and thereafter flying to adjacent countries, flights will be established to connect each regional hub. This will fulfil the strategy of becoming an African-wide airline.
Norse Air Limited ("Norse Air")
Lonrho's original investment in Norse Air was made in November 2006. Norse Air is a charter, leasing and maintenance company that operates from a base in South Africa. Although we initially only acquired 43% of this company we believed that, through the terms of the shareholder agreement, we had control and hence Norse was treated as a subsidiary of the Group and its results were fully consolidated for the period since acquisition in our interim results for the six months ended 31 March 2007. Lonrho believed that it had increased its shareholding in Norse to 51% on 5 September 2007. However this is disputed by the other shareholders and is now subject to ongoing legal action.
Unfortunately, we have also subsequently had a number of other serious issues with management of Norse Air (who own the balance of the equity). It has been argued by the management that Lonrho cannot exercise the control that we believe we had. As a result of this, our investment in Norse Air has now been classified as a participating interest in the consolidated accounts, for the whole of the period since the date of the original acquisition.
Because of the serious loss of confidence in the management of Norse Air and the effect that this has had on the business, we have made the decision to fully provide against the carrying value of our investment as at 30 September 2007. This has resulted in a loss of £4.4m in the year to September 2007. The Board believes that this was the most prudent approach to take given the ongoing uncertainty of the outcomes of the various legal actions, including to gain access to the financial records of the Norse Air group of companies, that we have been forced to take against the management of Norse Air. This legal action is currently ongoing.
The Board confirms that, other than the ongoing legal costs associated with the action being taken against the management of Norse Air, there is no further exposure to Lonrho in relation to any liabilities of Norse Air.
The Board has agreed that Lonrho will not inject any further funds into the Norse Air group of companies to settle any liabilities or losses that have, or may have, been incurred. It is therefore with regret that, having been left with no alternative but to instigate legal action in December 2007 for full disclosure from the management, we have had to take the drastic step of excluding Norse Air from the Lonrho Group operations with effect from 30 September 2007.
The Board did not take this decision lightly. However, it was felt necessary in the circumstances in order to protect Lonrho shareholders from any further exposure in respect of Norse Air.
Lonrho Air (BVI) Limited ("Lonrho Air") (100% holding)
As a further step to expand Lonrho's involvement in the aviation sector, Lonrho Air was established as a vehicle to acquire aircraft to on-lease to its subsidiary operations. Lonrho Air currently owns two ATR 42-320 aircraft, which are on lease to Fly540. Lonrho Air has options to acquire 10 new ATR 72-500 aircraft, which it proposes to debt finance for 85% of the purchase price in conjunction with a COFACE & SACE government guarantee. The aircraft will be deployed in the roll-out of Fly540.
Lonrho Air's model is based on identifying good value aircraft that are sought after by operators across Africa.
Swissta Holdings Limited ("Swissta") (100% holding)
Since the acquisition of 100% of Swissta in April 2007, which owns a plant in Maputo, Mozambique, Swissta brand water has become one of the market leaders of bottled water in Maputo. Swissta also has a 21.4% stake in a plant in the Democratic Republic of Congo and recently agreed to invest further funding, pro rata with other shareholders, to double the plant capacity to meet increasing demand.
Lonrho Springs was established in April 2007 to apply the Swissta model of water bottling plants across Africa and will become the brand name for Lonrho's bottled water subsidiaries, providing efficient, modular, international standard water filtration and bottling plants.
New bottling plants are under development in Angola, South Africa, and Lubumbashi in the Democratic Republic of Congo. Each plant is scaled to meet demand forecasts for the respective markets, and plants range from producing 500,000 litres per month to 10 million litres per month. The roll out of the Swissta technology will continue across Africa and is forecast to reach eight countries in the near future.
Sociedade Comercial Bytes & Pieces, Limitada ("Bytes and Pieces") (65% holding)
Bytes & Pieces is a successful computer hardware and software supplier and programmer. It is the market leader in Mozambique and provides turnkey network solutions and maintenance support. In 2007 Lonrho purchased 65% of the company on the understanding that the senior management would replicate the successful Mozambique business model across Africa.
Bytes & Pieces is expanding outside Mozambique under the name of Complete Enterprise Solutions ("CES"). CES, a venture in conjunction with the management, and has established operational offices and a sales force in Johannesburg. The company is a Dell Server master franchisee and also distributes Microsoft and HP products to the large corporate and Government markets. CES is attracting customers throughout Africa through its ability to provide bespoke IT solutions and has commenced the tendering and bidding process on Government, corporate and banking contracts for 2008.
Hotel Cardoso SARL ("Hotel Cardoso") (59.04% holding)
Hotel Cardoso exemplifies the business model for Lonrho Hotels. Utilising quality management, in a growing business market, the hotel has seen a 22% increase in room revenue and a 9% increase in occupancy. The Hotel meets the demands for business and local travellers to Mozambique.
Hotel Cardoso is currently undergoing a US$1.5m (£0.75m) refurbishment, due to be completed in late 2008. The first rooms to be modernised have been completed, and the outdoor poolside and garden area has also been renovated for guests enjoying the view and sunsets over the bay from the Hotel. Plans are also in place to redevelop the park adjacent to the Hotel, which will enhance the local area.
Lonrho has now secured a further hotel project in Lubumbashi in the Democratic Republic of Congo to service the demand created by the US$12 billion (£6 billion) foreign direct investment being made there by natural resource companies into copper and cobalt projects in the region. This will become the only international standard hotel in the region.
Projects have also been identified in Angola, Ivory Coast and Sudan where there is a disparity between demand and supply of quality accommodation for business and local visitors.
Lonrho Mining Limited ("Lonrho Mining") (21.64% holding)
Lonrho Mining Limited (formerly Nare Diamonds Limited), is an Australian listed mining company.
Lonrho Mining's main operation, the Schmidtsdrift Alluvial Mine near Kimberley, South Africa, owned 80% in conjunction with the local community, has produced 13,372 carats of diamonds from 2,603,605 tonnes up to 30 September 2007 since re-commencing trial mining operations in April 2006.
Lonrho Mining has recently entered into a joint venture agreement with Endiama, the national diamond company of Angola and exclusive concessionary for diamond mining rights, on the 3,000 square kilometres Lulo Diamond Concession ("Lulo").
Lulo contains numerous identified kimberlite pipes and two rivers with extensive terrace gravels. The artisanal miner activity in these rivers indicates that the gravels are diamond bearing.
Lonrho Mining intends to seek dual listings on the AIM Stock Exchange and Johannesburg Securities Exchange in the near future.
ZIMBABWE - Post Year End (not reflected in figures)
LonZim Plc ("LonZim") (20% holding)
Lonrho has a long history of being a large commercial participant in the Zimbabwe economy, but had disposed of all of its business assets in the country by 2000.
However, the Board are acutely aware that Zimbabwe was once, and will be again, an economic centre for Southern Africa. In an effort to position Lonrho as strongly as possible to benefit from an economic recovery, LonZim was established as a separate company to invest in projects in Zimbabwe and those related to the Zimbabwean economy. LonZim was listed on the London AIM stock exchange in December 2007 and raised £29 million.
Lonrho has been appointed by LonZim to provide management support services on the terms of a management services agreement.
Lonrho, on behalf of itself and any of its subsidiaries or companies in which Lonrho has majority control of the board, has agreed not to make investments in Zimbabwe or an area of Mozambique known as the Beira Corridor, during the period of the Management Services Agreement. Lonrho has agreed to provide services to LonZim including sourcing investment opportunities and is providing management, accounting, human resources, financial, marketing, technical and other support services.
Lonrho Plc received a free carry interest of 20% of the current issued share capital of LonZim (current market value £7.5 million) and charges a fee of 2 per cent of funds invested.
CORPORATE AND SOCIAL RESPONSIBILITY
Lonrho aims to improve business in Africa and make a positive difference to local communities. Lonrho believes that its investments and acquisitions will encourage job creation as well as economic and political stability throughout Africa.
Examples of some of the projects currently being undertaken:
Luba Freeport sponsors a school serving Luba Town and the surrounding area. This is currently attended by over 100 children.
Luba Freeport has established a twice weekly system of rubbish collection and disposal for the residents of Luba Town.
As a result of increasing requirements for English speaking workers for the oil industry, a night-school has been set up and is sponsored by Luba Freeport. This course is available to Luba Freeport employees, local residents and clients of Luba Freeport and has proven to be very popular.
Hotel Cardoso is also aware of its role in supporting the local community and provides a well equipped clinic for the use of its staff and their immediate families. The clinic has a full time nurse and is visited twice daily by a qualified doctor.
The Hotel supports Association Imagine, a British managed charity caring for orphaned children and single parent families mainly in the district of Katembe, adjacent to Maputo. In the last twelve months, donations to the charity have included mosquito nets, linen and blanketing.
Within the immediate locality of the Hotel, assistance to a local school will be given. A project for repainting all the school buildings is scheduled to commence in the near future.
The Hotel has also undertaken the task of rehabilitating the adjacent local park, renovating gardens and utility infrastructures as well as building new structures.
Fly540 continually strives to maintain high levels of awareness, amongst customers and industry travel partners, for Fly540's reduced impact on the environment through the deployment of modern, fuel efficient aircraft across its entire network. The benefits of this strategy have been accelerated through the recently announced options to buy 10 highly efficient ATR 72-500 turbo prop aircraft.
Fly540 has supported the expansion of the Narok community library with a donation for the purchase of books and the extension of the reading room. The library is run by the Maasai Education Discovery organisation which was founded in 1999 to promote education and community development.
The Annual General Meeting will be held on Monday 28 April 2008 at 11.00am at Plaisterers' Hall, One London Wall, London EC2Y 5JU. Statutory Information The financial information set out above does not constitute the Company's statutory accounts for the period ended 30 September 2007 but is derived from those accounts. Statutory accounts for 2007 will be delivered to the registrar of companies following the Company's Annual General Meeting. The auditors have reported on those accounts.