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MIK Meikles Limited

0.00
0.00 (0.00%)
Share Name Share Symbol Market Type Share ISIN Share Description
Meikles Limited LSE:MIK London Ordinary Share ZW0009012114 ZWR 0.1
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 0.00 -
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Hotels And Motels 230.86B 6.25B - N/A 0

Meikles Ld Abridged Unaudited Results for the y/e 31 Mar 2016

05/08/2016 9:58am

UK Regulatory


 
TIDMMIK 
 
MEIKLES LIMITED 
 
ABRIDGED UNAUDITED FINANCIAL RESULTS FOR THE YEARED 31 MARCH 2016 
 
CHAIRMAN'S STATEMENT 
 
Your Board is required to release unaudited results for the year ended 31 March 
2016. These results are exclusive of sums due from Government.  The Board has 
not yet received adequate confirmation from Government to justify the inclusion 
of these sums due in the unaudited financial statements. 
 
In the light of the shareholder update of 8 March 2016, the Company has 
received continuous assurances that the debt is agreed by Government and 
written confirmation will be forthcoming. The Board is pursuing, as a matter of 
urgency, the finalization of this issue, upon which audited results will be 
released. 
 
The sums due from Government will have a very material positive impact on the 
Company's results. As stated in the previous Annual Report, these sums will 
only be accounted for when they are received, or when receipt is confidently 
assured. 
 
The Zimbabwe Stock Exchange requires unaudited financial statements to be 
released at this point in time so that shareholders may be aware of the 
financial status and performance of the Group. 
 
I have pleasure in presenting the report for the financial year ended 31 March 
2016. 
 
Meikles Limited comprises six operating segments as follows: 
 
Hospitality; 
Stores (incorporating Departmental Stores and Wholesaling); 
Supermarkets; 
Agriculture; 
Financial Services; 
Security Services. 
 
Turnover for the Group increased by 10% relative to the previous year.  All 
segments contributed to the increase except for Hospitality.  The increase in 
turnover suggests growth in market share, a key objective that is expected to 
continue in the forthcoming financial year. 
 
Expenditure, driven primarily by a growth in occupancy costs resulting from 
expansion, increased by 1% relative to the previous year. 
 
EBITDA increased by US$11.7 million. The contribution by each material segment 
to the Group's EBITDA is set out in the notes to these abridged unaudited 
financial statements. 
 
HOSPITALITY 
 
The segment's total revenue for the full year declined by 4% to US$15.8 million 
(2015: US$16.4 million) due to the introduction of value added tax of 15% on 
revenue from foreigners which could not be fully passed onto guests through 
price increases.  At Meikles Hotel, room occupancy grew by 1.64 percentage 
points, but the average daily rate declined by 7% eclipsing the increase in the 
occupancy growth.  As a result, revenue per available room reduced by 3%. 
 
Room occupancy at Victoria Falls Hotel was 52.71% (2015: 55.26%). The average 
daily rate declined by 2% resulting in revenue per available room decreasing by 
6%. 
 
The drop in the average daily rate at both hotels was largely as a result of 
the introduction of value added tax of 15% on revenue from foreigners. 
 
Food and beverage gross profit margins were maintained at the previous year's 
levels despite menu price reductions during the course of the year. 
 
Operating costs for the year reduced by 3%.  Savings were achieved in employee 
costs and certain cost items denominated in South African Rand that benefited 
from the weakening of the Rand against the US$ during the course of the year. 
 
The decline in EBITDA was caused by the reduction in revenue. 
 
STORES 
 
The segment's revenue for the financial year ended 31 March 2016 was US$22.2 
million (2015: US$17.3 million), reflecting an increase of 28% over the last 
year due to the opening of new stores which operated for part of the year. 
Total operating costs reduced by 18% with savings being achieved in employee 
and occupancy costs.  Cost containment strategies are being implemented to 
reduce costs further in such areas as utilities, occupancy, other operating and 
staff costs. 
 
Despite shrinking customers' disposable income, the collection rate on trade 
debtors was unaffected and remained at 23% relative to the previous year.  Bad 
debt write-off reduced to 2% (2015: 2.9%) and customers' arrears reduced to 14% 
(2015: 16%). 
 
As part of its strategy to increase revenue streams and market share, a total 
of ten stores were opened progressively during the year comprising two Barbours 
stores, four M stores and four Meikles Mega Market branches. 
 
A number of Meikles Mega Market branches and M stores are planned to be opened 
in the 2017 financial year with the segment being expected to return to 
profitability by the end of the second quarter of the 2017 financial year. 
 
SUPERMARKETS - TRADING AS TM AND PICK N PAY 
 
The segment posted an excellent set of results for the financial year ended 31 
March 2016. These positive results came in an environment characterized by a 
number of impediments, mainly sluggish economic conditions and deflation in 
food prices. Turnover for the year grew by 10% to US$395.3 million relative to 
the prior year. Customer count increased by 7.6% leading to a growth in units 
sold of 12.6%. 
 
Despite the depressed macro-economic environment throughout the financial year, 
the average basket size increased by 3% in the current year. This is an 
indication that customers are spending more in our stores with competitive 
prices and unique promotions. 
 
The gross margin for the year declined by 55 basis points from 19.72% to 
19.17%. The investment in refrigeration and equipment helped improve the gross 
margin in new and upgraded branches. Enhanced focus on stock management helped 
to reduce shrinkage from prior year level by 46 basis points. 
 
Stock management efficiencies improved the stock turn from 12.6 to 14.4 times 
in the current year. 
 
Operating costs were 16.8% of turnover, an improvement from the prior year 
level of 17.1%. EBITDA for the year was US$15.9 million (2015: US$9.3 million). 
EBITDA growth was buoyed by increased sales, better shrinkage control and 
improved cost management. 
 
The property development adjacent to TM Borrowdale has reached an advanced 
stage. Construction work is expected to be completed by the end of 2016. The 
center is expected to officially open during the first quarter of 2017. 
 
AGRICULTURE 
 
Tanganda's revenue for the financial year ended 31 March 2016 of US$22.4 
million was 6% higher than the revenue of US$21.1 million in the previous year, 
mainly due to greater volumes of bulk tea sales.  During the year under review, 
bulk tea that had been stockpiled between December 2014 and March 2015 was sold 
following the granting of the Rainforest Alliance certification.  The segment's 
EBITDA increased on the back of growth in bulk tea export sales, an immediate 
positive impact of the Rainforest Alliance certification and various cost 
containment measures implemented during the period. 
 
Operating expenses included a provision for a taxation penalty, which affected 
Tanganda and certain other companies in the industry.  All companies involved 
are contesting the issue.  The provision in Tanganda's financials amounted to 
US$988,000. 
 
Unfavourable weather conditions (drought), the most adverse for a number of 
years, impacted negatively on yields of avocadoes, coffee and tea.  Bulk tea 
production to 31 March 2016 was 7,261 tonnes, 16% below the prior year of 8,609 
tonnes.  The cost of production for made tea was in line with expectation, with 
cost controls offsetting the impact of the decline in volumes. Average bulk tea 
export price of US$1.37/kg was 3% firmer than the prior year's US$1.33/kg. 
 
Coffee production at 181 tonnes was 14% higher than the prior year yield of 159 
tonnes but 33% below expectation of 272 tonnes due to moisture stress caused by 
the drought conditions.  The average selling price for coffee at US$2.95/kg was 
26% lower than the prior year of US$3.99/kg. 
 
FINANCIAL SERVICES 
 
Meikles Financial Services (MFS) had a successful year to 31 March 2016, having 
experienced uninterrupted growth. The segment has nearly completed its rollout 
of MyCash Kiosks across the country, from which a range of financial services 
are offered to a growing number of Zimbabweans. Agency banking continues to 
dominate in terms of revenue generation, though income from bill payments and 
other sources are on the increase. 
 
The highlight of the year has been the recent launch of the MyCash Card, a 
low-cost bank account that can be opened with reduced Know Your Customer (KYC) 
requirements. MyCash Card is a 'ZimSwitch Ready' debit card offering Mobile 
Banking (USSD and Smartphone) to previously unbanked individuals allowing them 
to benefit from formal financial services that would otherwise be unavailable, 
at a minimal cost. 
 
Given the current cash shortages in the economy, MyCash Card is proving to be 
attractive to all demographics as well as being a popular alternative to 
physical cash and a convenient method of paying employee wages. 
 
MFS continues to see opportunities in the financial markets and is developing a 
growing range of revenue streams that include cross border remittances, 
insurance and payroll services. 
 
SECURITY SERVICES 
 
Meikles Guard Services' objective for the financial year ended 31 March 2016 of 
expanding the number of contracts outside the Group was achieved in part. 
Despite the existing economic environment, Meikles Guard Services obtained 
contracts resulting in 21 posts outside the Group.  Security tenders have been 
lodged for various embassies, financial institutions as well as a number of 
entities in the commercial sector. Marketing will intensify through the 
provision of security at fundraising functions for the Meikles Foundation. 
 
MENTOR AFRICA LIMITED 
 
The Group experienced an impairment loss of US$2.885 million on its investment 
in South Africa due to the devaluation of the South African Rand against the US 
Dollar. The Rand value of the investment increased. A dividend of ZAR 18.4 
million was received from the investment (2015: ZAR17.3 million). 
 
MINING 
 
The Group's foreign mining partner has withdrawn from Zimbabwe. The Group is in 
a position to encourage other partners to participate in mining opportunities, 
but it is felt that the appropriate timing of any further involvement is not 
yet clear. 
 
OUTLOOK 
 
The Group's EBITDA performance in the 2017 financial year has so far been 
favourable relative to the year under review.  It is expected that rains in the 
forthcoming season will be far more normal.  The Group cannot predict the 
likely course of economic trends for the balance of the financial year. 
However, the Group will continue to observe closely the course of economic 
trends. The Group will also continue pursuing the recovery of the sums due by 
Government, cost reduction efforts, strong marketing and margin control. Where 
possible, short term loans will be converted to medium term loans. Market 
appetite for this conversion has improved. 
 
DIVID 
 
The Board resolved not to declare a dividend for the year. 
 
APPRECIATION 
 
I would like to extend my appreciation to our customers for their continued 
support and to our shareholders and regulatory authorities for their support 
and guidance.  I would also like to extend my thanks and appreciation to fellow 
Board members, management and staff for their dedication and commitment. 
 
JRT Moxon 
 
Executive Chairman 
 
2 August 2016 
 
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME 
 
FOR THE YEARED 31 MARCH 2016 
 
                                                                   31 March    31 March 
                                                                       2016        2015 
 
                                                                    US$ 000     US$ 000 
 
Revenue                                                             453,648     413,349 
 
Net operating costs                                               (451,596)   (423,723) 
 
Operating profit / (loss)                                             2,052    (10,374) 
 
Investment income                                                     3,628       4,546 
 
Finance costs                                                      (10,516)    (12,527) 
 
Impairment of investment in Mentor Africa Limited                   (2,885)     (4,726) 
 
Net exchange (losses) / gains                                         (274)         329 
 
Loss recognised on discounting Treasury Bills                       (8,628)     (9,019) 
 
Provision for  discount on RBZ balance                                    -    (14,705) 
 
Impairment and fair value adjustments on biological                   2,590       8,590 
assets 
 
Loss before tax                                                    (14,033)    (37,886) 
 
Income tax (expense) / credit                                       (5,309)       3,400 
 
Loss for the year                                                  (19,342)    (34,486) 
 
Other comprehensive income / (loss), net of tax 
 
Items that may be reclassified subsequently to profit 
or loss: 
 
Reclassification adjustment relating to 
available-for-sale financial assets disposed of in the                4,471           - 
current year 
 
    Fair value gain / (loss) on available-for-sale                    6,860    (12,472) 
financial assets 
 
Other comprehensive income / (loss) for the year, net                11,331    (12,472) 
of tax 
 
TOTAL COMPREHENSIVE LOSS FOR THE YEAR                               (8,011)    (46,958) 
 
(Loss) / profit for the year attributable to: 
 
     Owners of the parent                                          (22,712)    (34,445) 
 
     Non-controlling interests                                        3,370        (41) 
 
                                                                   (19,342)    (34,486) 
 
Total comprehensive (loss) / income attributable to: 
 
     Owners of the parent                                          (11,381)    (46,917) 
 
     Non-controlling interests                                        3,370        (41) 
 
                                                                    (8,011)    (46,958) 
 
Loss per share (cents) 
 
Basic                                                                (8.95)     (13.57) 
 
Diluted                                                              (8.31)     (12.60) 
 
Headline loss per share (cents)                                      (6.39)      (4.38) 
 
Diluted headline loss per share (cents)                              (5.93)      (4.07) 
 
CONSOLIDATED STATEMENT OF FINANCIAL POSITION 
 
AS AT 31 MARCH 2016 
 
                                                                   31 March    31 March 
                                                                       2016        2015 
 
                                                                    US$ 000     US$ 000 
 
ASSETS 
 
Non-current assets 
 
Property, plant and equipment                                       129,433     125,145 
 
Investment property                                                     248         249 
 
Investment in Mentor Africa Limited                                  20,046      22,931 
 
Biological assets                                                    45,945      41,083 
 
Intangible assets                                                       124         124 
 
Other financial assets                                               12,004      12,246 
 
Deferred tax                                                          3,480       4,201 
 
Total non-current assets                                            211,280     205,979 
 
Current assets 
 
Balance with the Reserve Bank of Zimbabwe                                 -       7,229 
 
Treasury Bills                                                       11,106      22,942 
 
Inventories                                                          33,391      35,626 
 
Trade and other receivables                                          14,611      19,893 
 
Other financial assets                                                3,493       4,093 
 
Cash and bank balances                                               10,494       8,883 
 
Total current assets                                                 73,095      98,666 
 
Total assets                                                        284,375     304,645 
 
EQUITY AND LIABILITIES 
 
Capital and reserves 
 
Share capital                                                         2,538       2,538 
 
Share premium                                                         1,316       1,316 
 
Other reserves                                                       11,418          87 
 
Retained earnings                                                    93,222     115,934 
 
Equity attributable to equity holders of the parent                 108,494     119,875 
 
Non-controlling interests                                            21,182      17,281 
 
Total equity                                                        129,676     137,156 
 
Non-current liabilities 
 
Borrowings                                                           11,063      24,402 
 
Deferred tax                                                         16,036      12,508 
 
Total non-current liabilities                                        27,099      36,910 
 
Current liabilities 
 
Trade and other payables                                             60,700      60,397 
 
Borrowings                                                           66,900      70,182 
 
Total current liabilities                                           127,600     130,579 
 
Total liabilities                                                   154,699     167,489 
 
Total equity and liabilities                                        284,375     304,645 
 
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 
 
FOR THE YEARED 31 MARCH 2016 
 
                                          Share       Share         Other       Retained 
                                        capital     premium      reserves       earnings 
 
                                        US$ 000     US$ 000       US$ 000        US$ 000 
 
2016 
 
Balance at 1 April 2015                   2,538       1,316            87        115,934 
 
(Loss) / profit for the year                  -           -             -       (22,712) 
 
Other comprehensive income for the            -           -        11,331              - 
year 
 
Non-controlling interests arising             -                         -              - 
from Mopani Property Development                          - 
(Private) Limited 
 
Balance at 31 March 2016                  2,538       1,316        11,418         93,222 
 
2015 
 
Balance at 1 April 2014                   2,538       1,316        12,559        155,455 
 
Loss for the year                             -           -             -       (34,445) 
 
Dividend                                      -           -             -        (5,076) 
 
Other comprehensive loss for the              -           -      (12,472)              - 
year 
 
Non-controlling interests arising             -                         -              - 
from Mopani Property Development                          - 
(Private) Limited 
 
Balance at 31 March 2015                  2,538       1,316            87        115,934 
 
 
 
 
                                    Attributable          Non         Total 
                                     to owners of controlling 
                                           parent   interests 
 
                                          119,875      17,281       137,156 
 
2016                                     (22,712)       3,370      (19,342) 
 
Balance at 1 April 2015                    11,331           -        11,331 
 
(Loss) / profit for the year                    -         531           531 
 
Other comprehensive income for the        108,494      21,182       129,676 
year 
 
Non-controlling interests arising         119,875      17,281       137,156 
from Mopani Property Development 
(Private) Limited 
 
Balance at 31 March 2016                 (22,712)       3,370      (19,342) 
 
2015                                      171,868      14,222       186,090 
 
Balance at 1 April 2014                  (34,445)        (41)      (34,486) 
 
Loss for the year                         (5,076)           -       (5,076) 
 
Dividend                                 (12,472)           -      (12,472) 
 
Other comprehensive loss for the                -       3,100         3,100 
year 
 
Non-controlling interests arising         119,875      17,281       137,156 
from Mopani Property Development 
(Private) Limited 
 
Balance at 31 March 2015 
 
 
 
 
CONSOLIDATED STATEMENT OF CASH  FLOWS 
 
FOR THE YEARED 31 MARCH 2016 
 
                                                                   31 March    31 March 
                                                                       2016        2015 
 
                                                                   US$ 000      US$ 000 
 
Cash flows from operating activities 
 
Loss  before tax                                                   (14,033)    (37,886) 
 
Adjustments for: 
 
- Depreciation and impairment of property, plant and                  9,505       9,454 
equipment and investment property 
 
- Net interest                                                        7,927       9,199 
 
  * Dividend income                                                 (1,039)     (1,217) 
 
- Net exchange losses / (gains)                                         274       (329) 
 
- Impairment of investment in Mentor Africa Limited                   2,885       4,726 
 
- Impairment and fair value adjustments on biological               (2,590)     (8,590) 
assets 
 
  * Loss recognised on discounting Treasury Bills                     8,628       9,019 
 
  * Provision for discount on RBZ balance                                 -      14,705 
 
- (Profit) / loss on disposal of property, plant and                   (25)         230 
equipment 
 
  * Impairment of intangible assets                                       -       1,404 
 
  * Impairment of investment in Afrasia Zimbabwe                          -         152 
    Holdings Limited 
 
Operating cash flow before working capital changes                   11,532         867 
 
Decrease in inventories                                               2,235       1,005 
 
Decrease in trade and other receivables                               6,025         396 
 
Increase in trade and other payables                                  1,246      10,139 
 
Cash generated from operations                                       21,038      12,407 
 
Income taxes paid                                                     (915)       (225) 
 
Net cash generated from operating activities                         20,123      12,182 
 
Cash flows from investing activities 
 
Payment for property, plant and equipment                          (14,601)    (25,319) 
 
Proceeds from disposal of property, plant and                           203         158 
equipment 
 
Proceeds from sale of Treasury Bills and coupon                      24,164      24,128 
interest 
 
Net movement in service assets                                          630        (43) 
 
Net movement in other  investments                                      885         255 
 
Net expenditure on biological assets                                (2,275)     (2,337) 
 
Investment income                                                       152         590 
 
Net cash generated from / (used in) investing                         9,158     (2,568) 
activities 
 
Cash flows from financing activities 
 
Net decrease in interest bearing borrowings                        (16,621)    (12,329) 
 
Proceeds on disposal of partial interest in a                           531       3,100 
subsidiary without loss of control 
 
Finance costs                                                      (10,516)    (12,527) 
 
Dividend paid - ordinary shareholders                               (1,063)     (2,138) 
 
Net cash used in financing activities                              (27,669)    (23,894) 
 
Net  increase / (decrease) in cash and bank balances                  1,612    (14,280) 
 
Cash and bank balances at the beginning of the year                   8,883      22,952 
 
Net effect of exchange rate changes on cash and bank                    (1)         211 
balances 
 
Cash and bank balances at the end of the year                        10,494       8,883 
 
NOTES TO THE ABRIDGED UNAUDITED FINANCIAL STATEMENTS 
 
1. Basis of preparation 
 
The abridged unaudited financial statements are prepared from statutory records 
that are maintained under the historical cost basis except for biological 
assets and certain financial instruments which are measured at fair value. 
Historical cost is generally based on the fair value of the consideration given 
in exchange for assets. 
 
2. Statement of compliance 
 
The Group's abridged unaudited financial results have been extracted from 
financial statements prepared in accordance with International Financial 
Reporting Standards and the Companies Act (Chapter 24.03) and relevant 
statutory instruments (SI33/99 and SI62/96). 
 
3. Accounting policies 
 
Accounting policies and methods of computation applied in the preparation of 
these abridged unaudited financial statements are consistent, in all material 
respects, with those used in the prior year with no significant impact arising 
from new and revised International Financial Reporting Standards (IFRSs) 
applicable for the year ended 31 March 2016. 
 
4. Going concern 
 
The Directors assess the ability of the Group to continue in operational 
existence in the foreseeable future at each reporting date. As at 31 March 
2016, the Directors have assessed the Group's ability to continue operating as 
a going concern and believe that the preparation of these unaudited financial 
statements on a going concern basis is still appropriate. 
 
5. Balance with the Reserve Bank of Zimbabwe 
 
Below is an analysis of the movement in RBZ balance during the year: 
 
                                                                  Group and    Group and 
                                                                    Company      Company 
 
                                                                   31 March     31 March 
                                                                       2016         2015 
 
                                                          Note      US$ 000      US$ 000 
 
Balance at the beginning of the year                                  7,229       90,861 
 
Treasury Bills received                                      i      (6,500)     (71,156) 
 
Compensation on Treasury Bills issued in lieu of amount      i        1,500            - 
due in cash 
 
Interest uplift on Treasury Bills reissued                  ii      (2,229)            - 
 
Provision for settlement discount                                         -     (14,705) 
 
Interest                                                                  -        2,229 
 
Balance at the end of the year                                            -        7,229 
 
 
 
Analysis of balance at the end of the year 
 
Amount due in cash                                                        -        5,000 
 
Interest                                                                  -        2,229 
 
Closing balance                                                           -        7,229 
 
Notes: 
 
 i. An amount of US$5 million was due and payable in cash on 31 March 2015. 
    This amount was settled by the RBZ issuing new Treasury Bills with a 
    nominal value of US$6.5 million, and a fair market value of US$5.8 million, 
    on 31 August 2015. The basis of calculating the fair market value of the 
    Treasury Bills is set out in note 6. 
ii. This amount was settled on 7 April 2015 by the RBZ replacing Treasury Bills 
    with a nominal value of US$31.1 million on hand at 31 March 2015 with new 
    Treasury Bills with a nominal value of US$33.3 million. The US$2.2 million 
    increase in the nominal value of the Treasury Bills relates to interest 
    from previous years. 
 
6. Treasury Bills 
 
Below is an analysis of the movement in the Treasury Bills' balance during the 
year: 
 
                                         Group and    Group and    Group and    Group and 
                                           Company      Company      Company      Company 
 
                                          31 March     31 March     31 March     31 March 
                                              2016         2016         2015         2015 
 
                                 Note      US$ 000      US$ 000      US$ 000      US$ 000 
 
                                              Fair      Nominal         Fair      Nominal 
                                          (Market)        value     (Market)        value 
                                             value                     value 
 
Balance at the beginning of                 22,942       35,414            -            - 
the year 
 
Treasury Bills received                      5,769        6,500       47,084       71,156 
during the year 
 
Gain on replacement of              i        8,320        2,229            -            - 
Treasury Bills 
 
Treasury Bills disposed                   (27,991)     (32,179)     (27,166)     (36,185) 
during the year 
 
Treasury Bills on hand at                    9,040       11,964       19,918       34,971 
year end 
 
Accrued interest                             2,066          283        3,024          443 
 
Balance at the end of the                   11,106       12,247       22,942       35,414 
year 
 
Notes: 
 
 i. On 7 April 2015 the RBZ replaced Treasury Bills with a nominal value of 
    US$31.1 million on hand at 31 March 2015 with new Treasury Bills with a 
    nominal value of US$33.3 million. The US$2.2 million increase in the 
    nominal value of the Treasury Bills related to interest from previous 
    years.  The change in the market value of the Treasury Bills arose as a 
    result of the higher coupon rates and shorter maturity dates of the new 
    Treasury Bills received. 
 
The Treasury Bills have been designated as "available-for-sale" (AFS) financial 
assets and were initially recognised/measured at fair (market) value. The fair 
(market) value of the Treasury Bills on initial recognition, and at 31 March 
2016, was calculated based on a yield to maturity of 17%. This yield to 
maturity was determined with reference to the percentage discount to the 
nominal value of the Treasury Bills at which the Company has been able to sell 
certain of the Treasury Bills in the open market during the preceding and 
current financial years. 
 
Interest income on the Treasury Bills is recognised using the effective 
interest rate method and is included in "Investment income" in the Statement of 
Profit or Loss and Other Comprehensive Income. 
 
At 31 March 2016, Treasury Bills with a nominal value of US$12.2 million (2015: 
US$14.7 million) were pledged as security for loans with a carrying value of 
US$14.8 million (2015: US$16.2 million). 
 
Treasury Bills issued by the Reserve Bank of Zimbabwe held at 31 March 2016: 
 
                                                                  Group and    Group and 
                                                                    Company      Company 
 
                                                                   31 March     31 March 
                                                                       2016         2015 
 
At fair (market) value                                              US$ 000      US$ 000 
 
Treasury Bills maturing on 10 April 2017 with a                      11,106            - 
coupon rate of 5% 
 
Treasury Bills maturing on 11 June 2018 with a                            -       10,922 
coupon rate of 2% 
 
Treasury Bills maturing on 10 June 2019 with a                            -        8,375 
coupon rate of 2% 
 
Treasury Bills maturing on 23 December 2016 with a                        -        3,645 
coupon rate of 5% 
 
                                                                     11,106       22,942 
 
The salient terms of the Treasury Bills held at 31 March 2016 are as follows: 
 
Treasury Bill number                                                    ZTB73120150410Z 
 
Issue date                                                                   10/04/2015 
 
Redemption date                                                              10/04/2017 
 
Nominal value - including accrued interest (US$ 000)                             12,247 
 
Coupon                                                                             5.0% 
 
Coupon payment dates                                                    10 April and 10 
                                                                                October 
 
Fair value - including accrued interest (US$ 000)                                11,106 
 
7. Segment information 
 
                                                                   31 March    31 March 
                                                                       2016        2015 
 
                                                                    US$ 000     US$ 000 
 
Revenue 
 
Supermarkets                                                        395,297     360,328 
 
Hotels                                                               15,812      16,398 
 
Agriculture                                                          22,412      21,091 
 
Departmental stores                                                   6,465       7,035 
 
Wholesaling                                                          15,740      10,308 
 
Corporate*                                                          (2,078)     (1,811) 
 
                                                                    453,648     413,349 
 
EBITDA 
 
Supermarkets                                                         15,911       9,307 
 
Hotels                                                                1,699       1,992 
 
Agriculture                                                             255       (104) 
 
Departmental stores                                                   (186)     (2,588) 
 
Wholesaling                                                         (2,326)     (2,415) 
 
Corporate*                                                          (3,152)     (5,708) 
 
                                                                     12,201         484 
 
The EBITDA figures are before Group management fees. 
 
Segment assets 
 
Supermarkets                                                         88,113      83,464 
 
Hotels                                                               47,557      49,216 
 
Agriculture                                                          77,522      75,270 
 
Departmental stores                                                  30,015      30,516 
 
Wholesaling                                                           4,268       2,048 
 
Corporate*                                                           36,900      64,131 
 
                                                                    284,375     304,645 
 
Segment liabilities 
 
Supermarkets                                                         46,716      49,524 
 
Hotels                                                               22,887      20,922 
 
Agriculture                                                          33,000      33,933 
 
Departmental stores                                                  16,984      16,533 
 
Wholesaling                                                           6,049       3,542 
 
Corporate*                                                           29,063      43,035 
 
                                                                    154,699     167,489 
 
*Intercompany transactions and balances have been eliminated from the corporate 
amounts. Corporate also includes other subsidiaries that are immaterial to 
warrant separate disclosure. 
 
                                                                   31 March    31 March 
                                                                       2016        2015 
 
                                                                    US$ 000     US$ 000 
 
8. Depreciation, amortisation and impairment 
 
Depreciation of property, plant and equipment                         9,206       8,858 
 
Impairment of property, plant and equipment                             298         595 
 
Depreciation of investment property                                       1           1 
 
Impairment of investment in Mentor Africa Limited                     2,885       4,726 
 
Impairment of intangible assets                                           -       1,404 
 
Impairment of investment in Afrasia Zimbabwe Holdings Limited             -         152 
 
                                                                     12,390      15,736 
 
9. Non-trading income 
 
Net investment revenue                                                3,628       4,546 
 
Impairment and fair value adjustments on biological assets            2,590       8,590 
 
Net exchange (losses) / gains                                         (274)         329 
 
                                                                      5,944      13,465 
 
Net investment revenue includes US$1.0 million (2015: US$1.2 
million) dividend receivable from Mentor Africa Limited. 
 
10. Net borrowings 
 
Non-current borrowings                                               11,063      24,402 
 
Current borrowings                                                   66,900      70,182 
 
Total borrowings                                                     77,963      94,584 
 
Cash and cash equivalents                                          (10,494)     (8,883) 
 
Net borrowings                                                       67,469      85,701 
 
Comprising: 
 
Secured                                                              68,454      85,836 
 
Unsecured                                                             9,509       8,748 
 
                                                                     77,963      94,584 
 
The weighted average cost of borrowings for the year was 11.48% 
per annum (2015: 11.95% per annum). 
 
 
 
11. Other information 
 
Capital commitments authorised by the Directors but not              19,715       8,426 
contracted 
 
Group's share of capital commitments of joint operations              2,651       2,600 
 
 
Website : www.meiklesinvestor.com 
 
 
 
END 
 

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August 05, 2016 04:58 ET (08:58 GMT)

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