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| 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 |
TIDMMIK MEIKLES LIMITED ABRIDGED AUDITED FINANCIAL RESULTS FOR THE YEARED 31 MARCH 2017 CHAIRMAN'S STATEMENT It gives me pleasure to present the Chairman's Report for the year ended 31 March 2017. AMOUNT OWED TO THE COMPANY BY GOVERNMENT Your Chairman and colleagues visited the Minister of Finance and his colleagues on two occasions. The Governor of the Reserve Bank of Zimbabwe was present at the first of the two meetings. The basis for an agreement between the Company and the Government of Zimbabwe was reached. Since then officials representing the Government and the Company have met to conclude the quantification of sums due following the agreement and to agree on the method of payment and timing thereof. The sum due to the Company together with accrued interest amounted to US$42.6 million as at 30 September 2016. This sum has not been included in the audited financial statements. Although the basis of the agreement has been reached, Government has not as yet completed the necessary documentation to conclude the formalities relevant to the agreement. OFFER BY ALBWARDY INVESTMENTS Shareholders are aware of the Cautionary releases relating to the approach to the Company and its Shareholders by Albwardy Investments. Further Cautionary statements will be released as necessary, to ensure that Shareholders are appropriately informed of developments. REVIEW OF PERFORMANCE Meikles Limited comprises six operating segments as follows: Supermarkets; Agriculture; Hospitality; Stores (incorporating Department Stores and Wholesaling); Financial Services; Security Services. Group Financial Results The Group's financial results for the year ended 31 March 2017, reflect the resilience of some of the Group's operations to the persistent decline in economic activity in the country. Group revenue for the year amounted to US$457.6 million (2016: US$453.6 million), boosted by an exceptional performance by the Supermarkets segment. Revenue for the Supermarkets grew by 5% defying the negative effect of depressed consumer demand that prevailed during the entire financial year. Revenue for the other segments declined due to adverse trading conditions. Expenditure was tightly controlled at all segments and significant ground was covered in reducing operating costs during the period. Net operating costs declined by 2% relative to the previous financial year, translating to a net US$7.8 million reduction in costs, despite an increase in rentals paid by Supermarkets following expansion. The initiatives on cost reduction have positioned the Group for leaner times the country is experiencing with declining revenue being the norm. The Group achieved a strong EBITDA growth, a pleasing result achieved under tough trading conditions. EBITDA increased by US$12.6 million or 104% from US$12.2 million to US$24.8 million. The contribution by each material segment to the Group's EBITDA is set out in the notes to these abridged audited financial statements. Profit before tax for the year came in at US$5.3 million recovering from a US$17.8 million loss in previous year. The turnaround was achieved primarily due to strong EBITDA growth assisted by absence of impairment charges on investment in Mentor Africa Limited as well as reduced losses on discounting Treasury Bills. Group borrowings at 31 March 2017, stood at US$66.2 million and were US$11.8 million lower than the level of US$78.0 million at 31 March 2016. Consequently interest paid for the year ended 31 March 2017, fell by 13% to US$9.2 million. The restructuring of short term loans to medium term facilities is in progress. The Group adopted changes in accounting for bearer plants as per the amendments to International Accounting Standards 16 and 41 effective for financial periods beginning 1 January 2016. Consequently tea bushes, coffee bushes, macadamia trees and avocado trees are now being carried at cost and depreciated over their productive lives. Prior year comparative figures have been restated as a result. The effect of the restatement on prior year comparative figures is disclosed in note 9 of these abridged financial statements. Supermarkets - trading as TM and Pick n Pay The segment had an eventful financial year with the climax being the reopening of the refurbished and rebranded flagship branch at Village Walk in Borrowdale. Despite the biggest branch TM Borrowdale operating under renovations for a greater part of the financial year, the segment achieved yet another set of exceptional results for the financial year ended 31 March 2017. Revenue for the year grew by 5% to US$414.0 million relative to the prior year. The segment has achieved revenue growth year on year since 2013, spurred by branch network expansion and upgrades. Gross profit margin for the year improved by 2 percentage points due to improved efficiency in procurement coupled with reduction in wastage and shrinkage. The investment in equipment upgrades, mainly refrigeration, has had a significant impact in reducing wastage. Operating costs grew by 7% due to incremental costs of new branches as well as increased depreciation on new equipment. EBITDA for the year grew by 50% to US$23.8 million (2016: US$15.9 million). CHAIRMAN'S STATEMENT (continued) The segment is now ungeared following the payment of the last installment in October 2016 of the US$25 million loan taken to expand and upgrade the branch network. The segment is now capable of funding expansion and upgrades from operating cash flows. Two new branches are at an advanced stage of development. These branches are expected to commence trading during the second half of this financial year. Agriculture The segment generated EBITDA of US$6.1 million during the year ended 31 March 2017, compared to just US$255,000 in prior year marking a historic turnaround in the viability of the business. Revenue went down by 6% to US$21.2 million (2016: US$22.4 million). The decline in revenue was due to a 20% fall in tonnage of bulk tea exports. Prior year's tonnage of bulk tea exports was higher due to build-up of stocks during the period from December 2014 to March 2015, when exports were on hold pending the granting of the Rainforest Alliance certification. International bulk tea export prices were firmer throughout the year averaging US$1.55 / kg in the 12 month's period to 31 March 2017, compared with average of US$1.37 / kg in the prior year. The segment experienced record heat and evaporation in the Chipinge District in September and October 2016. Fortunately after a disastrous start to the season, meaningful rainfall averaging 1 400 mm fell from November 2016 to March 2017 covering all estates. The ultimate production of 8 103 tonnes of made tea was 12% above prior year of 7 261 tonnes. New crops are progressing well and some 4 year old macadamia nut fields will yield an average of 400 kgs per hectare in the coming financial year. The average price of macadamia nuts of US$2.99 / kg was 19 US cents higher than the prior year. The average coffee export price was US$3.20 / kg. AAA grades fetched between US$4.60 / kg and US$5.00 / kg. The segment installed the second line of a four lane sizing machine in the avocado pack house ahead of the harvesting and toll processing period of April to June 2017. The segment benefited from the Reserve Bank of Zimbabwe's 5% export incentive which boosted our exports of packed tea into the region. Tingamira water sold in the year to March 2017 was 2.4 million litres. The brand has firmly established itself in the market as a premium brand for those customers who prefer to 'drink from a trusted source'. The Rainforest Alliance (Sustainable Agriculture), International Standards Organization (ISO - on packed tea), GlobalGAP (on avocadoes) and Standards Association of Zimbabwe (SAZ on bottled spring water) are all in place making our products acceptable worldwide. Hospitality The segment's revenue for the year of US$14.7 million (2016: US$15.8 million) declined by 7% relative to the previous year, weighed down by the fall in room occupancy and average room rates in Harare. Trading results at Meikles Hotel reflected the deepening economic challenges the country is facing. Room occupancy reduced by 3.41 percentage points and the average daily rate retreated by 13%. Consequently revenue per available room for the year reduced by 20%. The rebound in international tourist arrivals in Victoria Falls assisted in containing the decline in the segment's revenue to a single digit rate. Room occupancy at The Victoria Falls Hotel grew by 2.31 percentage points to 55.02% (2016: 52.71%). The average daily rate increased by 4% and combined with occupancy growth resulted in increased revenue per available room by 8%. Operating costs for the year reduced by 8%. At Meikles Hotel, operating costs decreased by 12% reflecting the combined effect of reduced room occupancy and cost reduction initiatives implemented by management. EBITDA for the year was US$1.8 million (2016: US$1.7 million), savings on operating costs offsetting the decline in revenue growth. Recently, The Victoria Falls Hotel Partnership renegotiated the extension of the lease of the The Victoria Falls Hotel for a longer tenure. Preparatory work for the second phase of refurbishment of the hotel is underway with the works expected to commence before the end of this financial year. Stores The segment's revenue for the financial year ended 31 March 2017 was US$9.0 million (2016: US$22.2 million), reflecting a decrease of 59% over last year. The absence of trading stock following various constraints on foreign and local payments had a negative impact on the business in the last quarter of the financial year. The number of trading units (wholesaling) were reduced from 9 to 5 in view of working capital constraints. Leases were exited in unprofitable and high overhead stores resulting in staff cost reduction and significant
Hot Features
Premium
savings on occupancy costs. The business has now been realigned and focused in
a way that has positioned it for future growth.
New stores were opened in strategic locations. These stores are performing
above expectations. Total operating expenses decreased by 9% over the year.
EBITDA loss was US$4.1 million (2016: loss of US$2.5 million).
Further development plans and store roll-outs are in progress. Four new stores
will be opened in the first quarter of the 2018 financial year, two stores in
Bulawayo, an M-store at Bradfield and a Meikles Mega Store adjacent to Meikles
Bulawayo and two Meikles Mega Stores in Kwekwe and Mutare. The key strategy is
to open new stores in Group owned premises and strategic locations.
The new REACTS point of sale and back office system which was fully implemented
in all Meikles Mega Market outlets is providing information to effectively deal
with pricing, unit stock control and accurate sales data.
Customer credit terms continued to be tightened but in spite of this credit
sales were 58% (2016: 69%) of sales for the department stores. The collection
rate on trade debtors improved to 25% (2016: 23%). However, the bad debt
write-off increased to 4.5% (2016: 2.2%), being a reflection on the lack of
disposable income and uncertain pay days among other factors. Consequently
customers' arrears increased to 19% (2016: 14%) in the period under review. As
at 31 March 2017 there were 29,612 active customers.
CHAIRMAN'S STATEMENT (continued)
Although the segment still has legacy issues surrounding certain merchandise
which can only be sold at reduced margins, the segment expects substantial
growth in the second quarter of the 2018 financial year, if the planned new
stores are opened and adequate funding for stock and working capital is
secured. The segment is expected to return to profitability by the end of the
second quarter of 2018 financial year. The full potential of the segment will
be achieved in the third quarter.
Financial Services
Meikles Financial Services (MFS) faced a mixed trading year to 31 March 2017.
The highlight for the year was the rapid uptake of the MyCash Card, the
low-cost, multi-featured bank account which was launched in early 2016. At 31
March 2017, there were in excess of 150,000 account holders covering all
demographic groups. We expect this level of growth to continue throughout 2017
and beyond.
On the negative side, the cash shortages that have prevailed in Zimbabwe over
the past year have led to a significant decline in acquirer revenues. This has
impacted our efforts to extend our presence across Zimbabwe. Despite this, MFS
opened a further 4 kiosks in TM Pick n Pay Supermarkets bringing the total to
45 at 31 March 2017.
MFS continues to adapt to the changing environment and we remain confident that
the company will become a major player in the field of Financial Services.
Security Services
Meikles Guard Services (MGS) continued to expand its customer base outside the
Group companies and secured twenty three additional posts during the period
under review. The total number of posts at 31 March 2017 stood at 268, of which
220 were posts within the Group and 48 posts were from organisations outside
the Group. We await the awarding of security tenders that MGS was recently
invited to submit. The tenders lodged are for various organisations including
embassies, corporates and financial institutions.
MENTOR AFRICA LIMITED
The value of the Group's investment in Mentor Africa Limited ("Mentor")
remained at the same level as last year in South African Rand terms. In US$
terms the value increased by US$2.1 million due to the South African Rand being
10% firmer against the US$ at 31 March 2017, relative to last year. The
increase in value is not reflected in the financial statements as IFRS does not
permit the upward revaluation of investment balances accounted for at cost less
impairment losses. A dividend of ZAR16.6 million was received from the
investment (2016: ZAR18.4 million). It should be noted that Mentor changed its
financial year end to 31 December. The dividend received above was declared
based on financial results for a nine months trading period.
MEIKLES FOUNDATION
The financial year ended 31 March 2017, saw an end to a particularly
challenging year for the Meikles Foundation with dwindling direct financial
support for projects from the Meikles Group.
The Foundation had to re-think its modus operandi, to be able to continue to
function and contribute to the society of Zimbabwe. We are proud to report
that in this harsh economic climate, the Foundation's philanthropic
contribution was in the region of US$120,000, the majority of which was
'in-kind' contributions and donations. A significant portion of the 'in-kind'
donations were through assistance from the Meikles Group where the Foundation
identified under-utilised assets and 'on-gifted' their use to various groups
and organisations. The Foundation, with its network played a key role in
linking, negotiating, sourcing goods and services from within the Meikles
Group, other corporates in Zimbabwe, NGO's and the diplomatic corps.
Key achievements were the donating of space to the dance troupe Nhaka Tumbuka
in Speke Avenue and the re-utilising of space for the dance school Afrikera
Arts Studio - the Hub along Robert Mugabe street where fifteen prospective
students from the city surrounds have the opportunity to study dance, as well
as business management for three years and graduate with an internationally
recognised diploma. Africalia and the Meikles Foundation fund this project. The
Foundation also funded both KidzCan and Island Hospice & Healthcare for
medication, supplementary feeding programmes, funding for small agricultural
projects aimed at self-sustainability and emergency funding for destitute and
abandoned babies and displaced families.
Moving forward, the focus of the Meikles Foundation for the upcoming financial
year is to continue to strengthen partnerships with the Meikles Group as well
as the donating society, and to streamline projects commitments whilst being
ever mindful of the volatile, uncertain, complex and ambiguous environment in
which it operates.
Planned projects include partnering with TM Pick n Pay Annual Golf Day, a
retreat home for children recovering from cancer treatment and always, wherever
possible ad-hoc assistance for the vulnerable.
OUTLOOK
The new financial year began following above normal rainfall and a rebound of
mineral prices on the international market. Strong marketing of the Group's
brands continue to be a key focus area across all the segments. Initiatives to
reduce operating costs further continue in all segments. The restructuring of
the Group's debt will be completed during the course of the financial year.
Efforts to date in this regard are resulting in success.
DIVID
The Board resolved not to declare a dividend for the year.
CHAIRMAN'S STATEMENT (continued)
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
31 May 2017
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEARED 31 MARCH 2017
Restated
31 March 31 March
2017 2016
US$ 000 US$ 000
Revenue 457,626 453,648
Net operating costs (444,452) (452,260)
Operating profit 13,174 1,388
Investment income 2,134 3,628
Finance costs (9,163) (10,516)
Impairment of investment in Mentor Africa Limited - (2,885)
Net exchange losses (161) (274)
Loss recognised on discounting Treasury Bills (1,429) (8,628)
Fair value adjustments on biological assets 789 (528)
Profit / (loss) before tax 5,344 (17,815)
Income tax expense (6,090) (4,860)
Loss for the year (746) (22,675)
Other comprehensive income, 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 441 4,471
the current year
Fair value gain on available-for-sale financial 653 6,860
assets
Other comprehensive income for the period, net of 1,094 11,331
tax
TOTAL COMPREHENSIVE INCOME / (LOSS) FOR THE YEAR 348 (11,344)
(Loss) / profit for the year attributable to:
Owners of the parent (6,719) (26,045)
Non-controlling interests 5,973 3,370
(746) (22,675)
Total comprehensive (loss) / income attributable to:
Owners of the parent (5,625) (14,714)
Non-controlling interests 5,973 3,370
348 (11,344)
Loss per share (cents)
Basic (2.65) (10.26)
Diluted (2.46) (9.53)
Headline loss per share (cents) (2.00) (7.68)
Diluted headline loss per share (cents) (1.86) (7.13)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2017
Restated Restated
31 March 31 March 1 April
2017 2016 2015
US$ 000 US$ 000 US$ 000
ASSETS
Non-current assets
Property, plant and equipment 172,664 170,454 164,601
Investment property 243 248 249
Investment in Mentor Africa Limited 20,046 20,046 22,931
Biological assets 1,147 1,227 1,624
Intangible assets 124 124 124
Other financial assets 11,901 12,004 12,246
Deferred tax 3,427 3,480 4,201
Total non-current assets 209,552 207,583 205,976
Current assets
Balances with Reserve Bank of Zimbabwe - - 7,229
Treasury Bills 3,024 11,106 22,942
Inventories 34,467 33,391 35,626
Trade and other receivables 13,969 14,248 19,645
Biological assets - produce on bearer plants 1,867 791 764
Other financial assets 4,134 3,493 4,093
Cash and bank balances 15,637 10,494 8,883
Total current assets 73,098 73,523 99,182
Total assets 282,650 281,106 305,158
EQUITY AND LIABILITIES
Capital and reserves
Share capital 2,538 2,538 2,538
Share premium 1,316 1,316 1,316
Other reserves 12,512 11,418 87
Retained earnings 83,683 90,402 116,447
Equity attributable to equity holders of the 100,049 105,674 120,388
parent
Non-controlling interests 28,591 21,182 17,281
Total equity 128,640 126,856 137,669
Non-current liabilities
Borrowings 9,241 11,063 24,402
Deferred tax 17,637 15,587 12,508
Total non-current liabilities 26,878 26,650 36,910
Current liabilities
Trade and other payables 70,155 60,700 60,397
Borrowings 56,977 66,900 70,182
Total current liabilities 127,132 127,600 130,579
Total liabilities 154,010 154,250 167,489
Total equity and liabilities 282,650 281,106 305,158
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEARED 31 MARCH 2017
Share Share
capital premium Other Retained
reserves earnings
US$ 000 US$ 000 US$ 000 US$ 000
2017
Balance at 1 April 2016 - as previously 2,538 1,316 11,418 93,222
stated
Prior year adjustment - - - (2,820)
Balance at 1 April 2016 - restated 2,538 1,316 11,418 90,402
(Loss) / profit for the year - - - (6,719)
Other comprehensive income for the year - - 1,094 -
Non-controlling interests arising from -
Mopani Property Development (Private) - - -
Limited
Balance at 31 March 2017 2,538 1,316 12,512 83,683
2016 - restated
Balance at 1 April 2015 - as previously 2,538 1,316 87 115,934
stated
Prior year adjustment - - - 513
Balance at 1 April 2015 - restated 2,538 1,316 87 116,447
(Loss) / profit for the year - - - (26,045)
Other comprehensive income for the year - - 11,331 -
Non-controlling interests arising from -
Mopani Property Development (Private) - - -
Limited
Balance at 31 March 2016 - restated 2,538 1,316 11,418 90,402
Attributable to Non-controlling Total
owners of parent interests
US$ 000 US$ 000 US$ 000
2017
Balance at 1 April 2016 - as previously stated 108,494 21,182 129,676
Prior year adjustment (2,820) - (2,820)
Balance at 1 April 2016 - restated 105,674 21,182 126,856
(Loss) / profit for the year (6,719) 5,973 (746)
Other comprehensive income for the year 1,094 - 1,094
Non-controlling interests arising from Mopani - 1,436 1,436
Property Development (Private) Limited
Balance at 31 March 2017 100,049 28,591 128,640
2016 - restated
Balance at 1 April 2015 - as previously stated 119,875 17,281 137,156
Prior year adjustment 513 - 513
Balance at 1 April 2015 - restated 120,388 17,281 137,669
(Loss) / profit for the year (26,045) 3,370 (22,675)
Other comprehensive income for the year 11,331 - 11,331
Non-controlling interests arising from Mopani - 531 531
Property Development (Private) Limited
Balance at 31 March 2016 - restated 105,674 21,182 126,856
CONSOLIDATED STATEMENT OF CASHFLOWS
FOR THE YEARED 31 MARCH 2017
Restated
31 March 31 March
2017 2016
US$ 000 US$ 000
Cash flows from operating activities
Profit / (loss) before tax 5,344 (17,815)
Adjustments for:
- Depreciation and impairment of property, 11,801 10,170
plant and equipment and investment property
- Net interest 8,022 7,927
- Dividend income (992) (1,039)
- Net exchange losses 161 274
- Impairment of investment in Mentor Africa - 2,885
Limited
- Fair value adjustments on biological assets (789) 528
Loss recognised on discounting Treasury Bills 1,429 8,628
- Loss / (profit) on disposal of property, 123 (25)
plant and equipment
Operating cash flow before working capital 25,099 11,533
changes
Decrease in inventories (1,076) 2,235
Decrease in trade and other receivables 1,317 6,137
Increase in trade and other payables 8,986 1,246
Cash generated from operations 34,326 21,151
Income taxes paid (3,520) (915)
Net cash generated from operating activities 30,806 20,236
Cash flows from investing activities
Payment for property, plant and equipment (14,229) (16,831)
Proceeds from disposal of property, plant and 230 203
equipment
Proceeds from sale of Treasury Bills and coupon 8,809 24,164
interest
Net movement in service assets 37 630
Net movement in other investments (515) 885
Net expenditure on biological assets (374) (158)
Investment income 56 152
Net cash (used in) / generated from investing (5,986) 9,045
activities
Cash flows from financing activities
Net decrease in interest bearing borrowings (11,745) (16,621)
Proceeds on disposal of partial interest in a 1,436 531
subsidiary without loss of control
Finance costs (9,163) (10,516)
Dividend paid - ordinary shareholders - (1,063)
Net cash used in financing activities (19,472) (27,669)
Net increase in cash and bank balances 5,348 1,612
Cash and bank balances at the beginning of the 10,494 8,883
year
Net effect of exchange rate changes on cash and (205) (1)
bank balances
Cash and bank balances at the end of the year 15,637 10,494
NOTES TO THE ABRIDGED AUDITED FINANCIAL STATEMENTS
1. Basis of preparation
The abridged audited 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 audited 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). These abridged financial results
should be read in conjunction with the complete set of financial statements for
the year ended 31 March 2017 which have been audited by Deloitte & Touche
Chartered Accountants (Zimbabwe) and an unmodified audit opinion issued
thereon. The auditors have included a section on key audit matters. The key
audit matters were on material uncertainty related to going concern, valuation
of biological assets and contingent assets and liabilities. The auditor's
report is available for inspection at the Company's registered address.
3. Accounting policies
Accounting policies and methods of computation applied in the preparation of
these abridged audited financial statements are consistent, in all material
respects, with those used in the prior year, except for the effect of the newly
revised International Financial Reporting Standards (IFRSs) on Agriculture:
Bearer Plants (Amendements to IAS 16 and IAS 41). Please refer to note 9 for
more details.
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
2017, the Directors have assessed the Group's ability to continue operating as
a going concern and believe that the preparation of these audited financial
statements on a going concern basis is still appropriate.
5. 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
2017 2017 2016 2016
US$ 000 US$ 000 US$ 000 US$ 000
Fair Fair
(Market) Nominal (Market) Nominal
value value value value
Balance at the beginning of 11,106 12,247 22,942 35,414
the year
Treasury Bills received - - 5,769 6,500
during the year
Gain on replacement of - - 8,320 2,229
Treasury Bills
Interest for the year 1,061 409 2,396 940
Coupon interest received (551) (551) (330) (330)
Treasury Bills disposed (8,592) (9,034) (27,991) (32,506)
during the year
Balance at the end of the 3,024 3,071 11,106 12,247
year
Analysis of balance
Treasury bills on hand at 2,480 3,000 9,889 11,964
end of the year
Accrued interest 544 71 1,217 283
Balance at the end of the 3,024 3,071 11,106 12,247
year
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 2017, 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 2017, Treasury Bills
with a nominal value of US$3.1million (2016: US$12.2 million) were pledged as
security for loans with a carrying value of US$3.6 million (2016: US$14.1
million).
Treasury Bills issued by the Reserve Bank of Zimbabwe held at 31 March 2017:
Group and Group and
Company Company
31 March 31 March
2017 2016
US$ 000 US$ 000
At fair (market) value
Treasury Bills maturing on 10 April 2017 with a 3,024 11,106
coupon rate of 5%
3,024 11,106
NOTES TO THE ABRIDGED AUDITED FINANCIAL STATEMENTS
5. Treasury Bills (continued)
The salient terms of the Treasury Bills held at 31 March 2017 are as follows:
Treasury Bill number ZTB73120150410Z
Issue date 10/04/2015
Redemption date 10/04/2017
Nominal value - including accrued interest (US$ 000) 3,071
Coupon 5.0%
Coupon payment dates 10 April and 10
October
Fair value - including accrued interest (US$ 000) 3,024
6. Segment information
Restated
31 March 31 March
2017 2016
US$ 000 US$ 000
Revenue
Supermarkets 413,997 395,297
Hotels 14,667 15,812
Agriculture 21,173 22,412
Departmental stores 4,640 6,465
Wholesaling 4,432 15,740
Corporate* (1,283) (2,078)
457,626 453,648
EBITDA
Supermarkets 23,807 15,911
Hotels 1,814 1,699
Agriculture 6,096 255
Departmental stores (1,333) (186)
Wholesaling (2,797) (2,326)
Corporate* (2,779) (3,152)
24,808 12,201
The EBITDA figures are before Group management fees.
Restated
31 March 31 March
2017 2016
US$ 000 US$ 000
Segment assets
Supermarkets 98,532 88,113
Hotels 46,460 47,557
Agriculture 76,038 74,254
Departmental stores 26,899 30,015
Wholesaling 4,196 4,268
Corporate* 30,525 36,899
282,650 281,106
Segment liabilities
Supermarkets 43,314 46,716
Hotels 22,782 22,887
Agriculture 30,944 32,552
Departmental stores 17,286 16,984
Wholesaling 8,690 6,049
Corporate* 30,994 29,062
154,010 154,250
*Intercompany transactions and balances have been eliminated from the corporate
amounts. Corporate also includes other subsidiaries that are immaterial to
warrant separate disclosure.
Restated
31 March 31 March
2017 2016
7. Other information US$ 000 US$ 000
Depreciation of property, plant and equipment and investment 10,653 9,826
property
Impairment of property, plant and equipment 1,148 343
Capital commitments authorised by the Directors but not 13,500 19,715
contracted for
Group's share of capital commitments of joint operations - 2,651
NOTES TO THE ABRIDGED AUDITED FINANCIAL STATEMENTS
Restated
31 March 31 March
2017 2016
US$ 000 US$ 000
8. Net borrowings
Non-current borrowings 9,241 11,063
Current borrowings 56,977 66,900
Total borrowings 66,218 77,963
Cash and cash equivalents (15,637) (10,494)
Net borrowings 50,581 67,469
Comprising:
Secured 55,773 68,454
Unsecured 10,445 9,509
66,218 77,963
The weighted average cost of borrowings for the year was 13.63% per annum
(2016: 11.48% per annum).
The Group has issued cross company guarantees worth US$29.8 million (2016:
US$36.9 million) for Group borrowing facilities.
9. Prior year adjustment - change in accounting policy for bearer plants (
Amendments to IAS 16 And IAS 41 Agriculture: Bearer Plants)
The Group has applied the above amendments for the first time in the current
year. The amendments define a bearer plant and require biological assets that
meet the definition of a bearer plant to be accounted for as property, plant
and equipment in accordance with IAS 16, instead of IAS 41. The produce growing
on bearer plants continues to be accounted for in accordance with IAS 41.
The application of these amendments has had a material impact on the Group's
consolidated financial statements, as the Group is engaged in agricultural
activities through one of its subsidiaries, Tanganda Tea Company Limited.
Retrospective adjustments have been made to the financial statements with
effect from 1 April 2015, the beginning of the earliest period presented, as
required by the transitional provisions of these amendments.
The Group has elected to measure bearer plants at their fair value at the
beginning of the earliest period presented, 1 April 2015, and have used that
fair value as the deemed cost of the bearer plants as at that date. Adjustments
were made to opening retained earnings at 1 April 2015 for the fair value
differences on the produce growing on the bearer plants.
The effect of the restatement to the March 2016 consolidated financial
statements is as summarised below:
Group
31 March
2016
Effect on the consolidated statement of profit or loss and other US$ 000
comprehensive income
Increase in net operating costs (depreciation) (664)
Decrease in fair value gain on biological assets (3,118)
Decrease in deferred tax expense 449
Decrease in profit (3,333)
Decrease in basic loss per share (1.31)
Decrease in diluted loss per share (1.22)
Decrease in headline loss per share (1.29)
Decrease in diluted headline loss per share (1.20)
Effect on the consolidated statement of financial position
Increase in property, plant and equipment 41,021
Decrease in biological assets (43,927)
Decrease in trade and other receivables (363)
Decrease in deferred tax liability 449
Decrease in equity (2,820)
Effect on opening retained earnings (1 April 2015)
Increase in opening retained earnings 513
Meikles Limited Website : http://www.meiklesltd.com/
END
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June 02, 2017 05:51 ET (09:51 GMT)
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