News Column

Zimbabwe : MEIKLES posts after tax profit of $37 million in profit

July 7, 2014

Meikles Limited posted an after tax profit of $37.1 million for the full year from $6.5 million due to a jump in non-trading income.

Non-trading income rose by $48.8 million from $9.7 million last year.

Group revenue was 1.8% lower than the prior period due to a lower turnover from its retail and agricultural subsidiaries while borrowing was increased after the Group secured funding for expansion and refurbishments in the supermarket and hotel business.

Basic earnings per share rose to 13.56c from 0.75c a year earlier. The group presented unaudited results for the period while audited results were presented at the end of this month.

The release of the unaudited results was sanctioned by the Zimbabwe Stock Exchange, was precipitated by the need to resolve the issue held by the Reserve Bank of Zimbabwe.

The resolution of the deposit held at the Reserve Bank of Zimbabwe is a critical factor affecting these results.

The resolution will influence the audited results, in the composition of the balance sheet and in the disclosure of post balance sheet events.

Intense negotiations with the Ministry of Finance and Economic Planning were in progress with the intention to facilitate access to the fund by the end of the month.

The resolution will be based on the company being in receipt of Treasury Bills, the terms are to be acceptable at face value to the market.

The receipts has potential to make a substantial contribution to the Nation, both through the group's own activities and the corporate responsibility programmes through the Meikles Foundation.

TM supermarket's turnover fell to $334 million from $336 million although customer count throughout the store footprint increased by 8%.

The store portfolio increased from 49 to 53 branches under review with the company securing 4 new in prominent areas in the second half of the year, which increased the subsidiary's trading area by 10% to 55 000 sq m.

Their impact on turnover and profitability will be felt in the ensuing financial period. The Meikles Mega Market stores contributed over $2 million in turnover during the period under review and the group plans were underway to open at least 4 new stores by the end of the 2015 financial year.

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Source: TendersInfo (India)

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