Africa-focused conglomerate Lonrho has raised £16 million for expansion and wants authority to issue more shares.

Africa-focused conglomerate Lonrho has raised £16 million for expansion and wants authority to issue more shares.

The company, whose businesses range from agricultural products distribution and commodities to airlines and luxury hotels, has tapped existing shareholders for the money at 10p a share. Executive chairman David Lenigas says the funds will provide further working capital and enable AIM-quoted Lonrho to increase its holdings in its core businesses, including agriculture and building.

The company, which recently indicated it had slashed losses from £39 million to £4.5 million in the year to September on turnover up 55 per cent to £91 million, says it plans to call a shareholders’ meeting to increase its authority to issue further shares if demand exists. Lonrho says earnings before interest, tax, depreciation and amortisation were £9.3 million in the fourth quarter of its last financial year, against a £7 million loss a year previously, on turnover up 312 per cent to £30 million.