Meikles profits rise 225%

Published: 16 July 2018

Zimbabwe Stock Exchange listed conglomerate, Meikles Limited, says pretax profits for the year ended March 31, 2018 grew by 225 percent to $19,2 million, from $5,9 million during the prior comparable period in 2017.

Revenue increase to $534,9 million during the review period, from $457,6 million the previous year, on strong performances from agriculture and tourism, according to financial statements released Friday.

Chairperson John Moxon projected that profits will continue to rise in the coming financial year.

"The first three months of the new financial year to March 2019 have performed well," Moxon said.

"Profits continue to increase relative to the same period for the previous year. Growth in profits is expected to continue," he said.

Moxon pointed out that the group was going to focus on specialised retailing going forward.

"With the knowledge that the funding is to be forthcoming, the segment will focus on a retail offering that is compatible with the forward requirements of a smaller but more specialised retail offering.

"In this context, a renovation of Barbours will be the first priority.

"It is envisaged that this project will be completed in the new financial year.

"The other stores will adopt the same merchandising methodology as Barbours, but physical renovations will coincide with the redevelopment of the group's real estate properties, in which retail will be located alongside other tenants," he said.

Noting that the group's commercial real estate properties were in prime locations around the country, Moxon said the buildings were being analysed.

"… This is for redevelopment along a similar concept to that achieved at Village Walk, Borrowdale.

"It is anticipated that these projects, when completed will generate substantial rental revenue for the group," he said.

Moxon was quick to point out that the preliminary set of unaudited results did not include the funds government owes the group, but another set of the financials were to be expected before the end of August.

Trading in 55 stores, the segment will see the opening of other stores in the 2019 financial year along with upgrades to existing stores.

With EBITDA rising to $10,3 million from $6,1 million, Meikles' agriculture unit anticipates a better yield once avocado and macadamia plantations reach maturity in the future.

Hospitality EBITDA grew from $1,8 million to $4,1 million.

In the year under review, Meikles sold off its financial services segment to focus on core operations.
- Financial Gazette

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