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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 |
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TIDMMIK
MEIKLES LIMITED
ABRIDGED UNAUDITED FINANCIAL RESULTS FOR THE SIX MONTHSED 30 SEPTEMBER 2017
CHAIRMAN'S STATEMENT
Group Financial Review
Group revenue for the half year ended 30 September 2017 grew by 12% to US$254.0
million from US$225.9 million in the previous year. The contribution to revenue
by the different segments of the Group is set out in Note 5.
EBITDA for the period grew by US$5.7 million or 60% from US$9.5 million in the
previous year to US$15.3 million. The contribution to EBITDA by the different
segments of the Group is set out in Note 5.
Profit before tax from continuing operations was US$5.4 million compared with a
loss of US$0.7 million in the previous year. Profit before tax for the six
month period was above the result for the full financial year ended 31 March
2017 of US$5.3 million.
The group disposed of its financial services operations on 31 August 2017. The
group does accommodate all financial services participants to ensure ease of
transacting for customers.
Segment Commentary
TM Supermarkets trading as TM and PnP
Revenue for the period amounted to US$232.0 million, a growth of 15% from
US$202.0 million in the previous year. The growth in revenue included a
substantial increase in the number of units sold.
EBITDA for the period grew by 38% to US$13.2 million. Profit before tax was at
US$9.1 million, a 49% growth from US$6.1 million in the previous year.
Refurbishment works are in progress at a number of branches with completion
expected before the commencement of the festive season. Additional branches are
soon to be opened and others are under consideration in terms of forward
planning
Tanganda
Revenue grew by 26% to US$12.9 million from US$10.2 million achieved during the
six months ended 30 September 2016. International bulk tea export prices
continued to firm to average US$1.65/kg in the six month's period to 30
September 2017 compared with an average of US$1.51 for the same period last
year. Bulk tea production of 3 077 tonnes was 37% higher than 2 251 tonnes
produced in the comparative prior year period.
The average price on avocadoes of US$1.62/kg was 80% higher than the previous
season's average price of US$0.90/kg due to significant improvement in quality
as the trees mature. 629 tonnes of avocadoes were exported compared to 127
tonnes in the previous season.
Macadamia nuts sales of 192 tonnes for the six months to September 2017 were
19% higher than 162 tonnes for the six months to September 2016. Average price
of US$4.39/kg was 57% higher than US$2.80/kg realised in the previous period.
EBITDA was US$2.9 million during the six months period ended 30 September 2017.
This was a significant growth over US$1.4 million generated during the six
months ended 30 September 2016.
In September 2017, Tanganda accessed the concessionary Reserve Bank of
Zimbabwe's export finance facility which has assisted significantly in sourcing
inputs and retiring expensive debt. This development has placed Tanganda in a
sound financial position.
Hospitality
Revenue grew by 13% to US$8.7 million, with the growth primarily attributable
to a surge in tourist arrivals in Victoria Falls. New airlines commenced
flights to Victoria Falls during the period under review. Room occupancy grew
by 4.59 and 13.14 percentage points at Meikles Hotel and Victoria Falls Hotel
respectively. The average room rate grew marginally at Victoria Falls Hotel. At
Meikles Hotel the average room rate declined by 7% as the mix of business
during the period was dominated by conference groups.
EBITDA for the period grew by 84% to US$2.1 million from US$1.1 million in the
previous year. EBITDA for the six month's period was 16% above the result for
the full financial year ended 31 March 2017.
The lease for the Victoria Falls Hotel was recently renewed. Planning of the
refurbishment of the hotel is at an advanced stage.
Stores - Meikles Stores and Meikles Mega Market
Seven outlets were closed during the period under review due to working capital
constraints. Savings were realised from various cost control measures
implemented during the period. EBITDA for the period resulted in a loss of
US$1.8 million compared with a loss of US$1.6 million in the previous year.
Funding arrangements for working capital requirements have very recently been
secured. The division will shortly be in a position to trade in a normal
fashion and the turnaround lead period to profit is expected to be relatively
short.
Amount owed by Government
Considerable progress has been made in our interaction with Government towards
the receipt of the funds that are due to the Company from Government.
An agreement was due to be finalised immediately before the release of our
results for the period to 30 September 2017. It is now anticipated that recent
events will delay finalisation, but it is not expected that the outcome will be
compromised in any way.
Outlook
The Group is expected to increase its EBITDA performance during the second half
of the financial year. Strategies to reduce short term borrowings further
during the remaining months of the financial year are in the process of being
implemented.
Appreciation
I would like to extend my appreciation to our customers, suppliers,
shareholders and regulatory authorities for their continued support. I would
also like to extend my appreciation to my fellow Directors, and to management
and staff for their dedication and commitment.
Dividend
The Board has not declared an interim dividend. However, it is expected that
following a conclusion of arrangements on the amount owed by Government, it
will be possible to consider the declaration of an interim dividend.
JRT Moxon
Executive Chairman
14 November 2017
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE SIX MONTHSED 30 SEPTEMBER 2017
Unaudited Unaudited
30 Sep 2017 30 Sep 2016
US$ 000 US$ 000
CONTINUING OPERATIONS
Revenue 253,989 225,898
Net operating costs (245,151) (222,255)
Operating profit 8,838 3,643
Investment income 34 723
Finance costs (3,440) (4,215)
Net exchange (losses) / gains (37) 7
Loss recognised on discounting Treasury Bills (6) (774)
Fair value adjustments on biological assets - 3
Profit / (loss) before tax 5,389 (613)
Income tax expense (2,672) (769)
Profit / (loss) for the period from continuing 2,717 (1,382)
operations
DISCONTINUED OPERATION
Profit for the period from discontinued operation 554 (76)
Profit / (loss) for the period 3,271 (1,458)
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 47 617
the current period
Other comprehensive income for the period, net of 47 617
tax
TOTAL COMPREHENSIVE INCOME / (LOSS) FOR THE PERIOD 3,318 (841)
(Loss) / profit for the period attributable to:
Owners of the parent (41) (3,655)
Non-controlling interests 3,312 2,197
3,271 (1,458)
Total comprehensive income / (loss) attributable to:
Owners of the parent 6 (3,038)
Non-controlling interests 3,312 2,197
3,318 (841)
(Loss) / earnings per share (cents)
Basic (0.02) (1.44)
Continuing operations (0.24) (1.41)
Discontinued operations 0.22 (0.03)
Diluted (0.01) (1.34)
Continuing operations (0.21) (1.31)
Discontinued operations 0.20 (0.03)
Headline loss per share (cents) (0.29) (1.12)
Continuing operations (0.21) (1.09)
Discontinued operations (0.08) (0.03)
Diluted headline loss per share (cents) (0.27) (1.04)
Continuing operations (0.19) (1.01)
Discontinued operations (0.08) (0.03)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2017
Unaudited Audited
30 Sep 2017 31 March
2017
US$ 000 US$ 000
ASSETS
Non-current assets
Property, plant and equipment 173,253 172,664
Investment property 241 243
Investment in Mentor Africa Limited 20,046 20,046
Biological assets 1,262 1,147
Intangible assets 124 124
Other financial assets 11,823 11,901
Deferred tax 3,859 3,427
Total non-current assets 210,608 209,552
Current assets
Treasury Bills - 3,024
Inventories 30,710 34,467
Trade and other receivables 16,639 13,969
Biological assets - produce on bearer plants 1,195 1,867
Other financial assets 3,419 4,134
Cash and bank balances 27,552 15,637
Total current assets 79,515 73,098
Total assets 290,123 282,650
EQUITY AND LIABILITIES
Capital and reserves
Share capital 2,538 2,538
Share premium 1,316 1,316
Other reserves 12,559 12,512
Retained earnings 83,642 83,683
Equity attributable to equity holders of the parent 100,055 100,049
Non-controlling interests 30,188 28,591
Total equity 130,243 128,640
Non-current liabilities
Borrowings 15,446 9,241
Deferred tax 18,551 17,637
Total non-current liabilities 33,997 26,878
Current liabilities
Trade and other payables 75,067 70,155
Borrowings 50,816 56,977
Total current liabilities 125,883 127,132
Total liabilities 159,880 154,010
Total equity and liabilities 290,123 282,650
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHSED 30 SEPTEMBER 2017
Share Share
capital premium Other Retained
reserves earnings
US$ 000 US$ 000 US$ 000 US$ 000
2017 - Unaudited
Balance at 1 April 2017 2,538 1,316 12,512 83,683
(Loss) / profit for the period - - - (41)
Other comprehensive income for the - - 47 -
period
Non-controlling interests arising -
from Mopani Property Development - - -
(Private) Limited
Balance at 30 September 2017 2,538 1,316 12,559 83,642
2016 - Unaudited
Balance at 1 April 2016 2,538 1,316 11,418 90,096
(Loss) / profit for the period - - - (3,655)
Other comprehensive income for the - - 617 -
period
Non-controlling interests arising -
from Mopani Property Development - - -
(Private) Limited
Balance at 30 September 2016 2,538 1,316 12,035 86,441
Attributable to Non-controlling Total
owners of parent interests
US$ 000 US$ 000 US$ 000
2017 - Unaudited
Balance at 1 April 2017 100,049 28,591 128,640
(Loss) / profit for the period (41) 3,312 3,271
Other comprehensive income for the 47 - 47
period
Non-controlling interests arising - (1,715) (1,715)
from Mopani Property Development
(Private) Limited
Balance at 30 September 2017 100,055 30,188 130,243
2016 - Unaudited
Balance at 1 April 2016 105,368 21,182 126,550
(Loss) / profit for the period (3,655) 2,197 (1,458)
Other comprehensive income for the 617 - 617
period
Non-controlling interests arising - 1,050 1,050
from Mopani Property Development
(Private) Limited
Balance at 30 September 2016 102,330 24,429 126,759
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHSED 30 SEPTEMBER 2017
Unaudited Unaudited
30 Sep 2017 30 Sep 2016
CONTINUING AND DISCONTINUED OPERATIONS US$ 000 US$ 000
Cash flows from operating activities
Profit / (loss) before tax 5,943 (709)
Adjustments for:
- Depreciation and impairment of property, 6,658 5,998
plant and equipment and investment property
- Net interest 3,399 3,502
- Net exchange losses / (gains) 37 (7)
- Profit on disposal of subsidiary (768) -
- Fair value adjustments on biological assets - (3)
- Loss recognised on discounting Treasury Bills 6 774
- Loss on disposal of property, plant and 176 99
equipment
Operating cash flow before working capital 15,451 9,654
changes
Decrease / (increase) in inventories 3,757 (557)
(Increase) / decrease in trade and other (2,963) 2,139
receivables
Increase in trade and other payables 4,289 5,850
Cash generated from operations 20,534 17,086
Income taxes paid (1,567) (794)
Net cash generated from operating activities 18,967 16,292
Cash flows from investing activities
Payment for property, plant and equipment (7,465) (6,317)
Proceeds from disposal of property, plant and 117 33
equipment
Proceeds from sale of Treasury Bills and coupon 3,075 1,950
interest
Net movement in service assets (73) 27
Net movement in other investments 816 (378)
Net movement in biological assets 557 (23)
Net cash inflow on disposal of subsidiary 1,060 -
Investment income 12 33
Net cash used in investing activities (1,901) (4,675)
Cash flows from financing activities
Net decrease in interest bearing borrowings 45 (6,333)
Proceeds on disposal of partial interest in a - 1,050
subsidiary without loss of control
Finance costs (3,444) (4,227)
Dividend paid - minority shareholders (1,715) -
Net cash used in financing activities (5,114) (9,510)
Net increase in cash and bank balances 11,952 2,107
Cash and bank balances at the beginning of the 15,637 10,494
period
Net effect of exchange rate changes on cash and (37) (54)
bank balances
Cash and bank balances at the end of the period 27,552 12,547
NOTES TO THE ABRIDGED UNAUDITED FINANCIAL RESULTS
1. Basis of preparation
The abridged unaudited financial results 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. These abridged unaudited financial results do not
include all information and disclosures required to fully comply with IFRS and
should be read in conjunction with the Group's annual report per 31 March 2017.
2. Accounting policies
Accounting policies and methods of computation applied in the preparation of
these abridged unaudited financial results are consistent, in all material
respects, with those used in the prior year.
3. 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 30 September
2017, the Directors have assessed the Group's ability to continue operating as
a going concern and believe that the preparation of these unaudited financial
results on a going concern basis is still appropriate.
4. Treasury Bills
Below is an analysis of the movement in the Treasury Bills' balance during the
period:
Group and Group and Group and Group and
Company Company Company Company
30 Sep 2017 30 Sep 2017 31 March 31 March
2017 2017
US$ 000 US$ 000 US$ 000 US$ 000
Fair Fair
(Market) Nominal (Market) Nominal
value value value value
Balance at the beginning of the 3,024 3,071 11,106 12,247
period
Interest charge for the period 11 4 1,061 409
Coupon interest received (75) (75) (551) (551)
Treasury Bills disposed /matured (2,960) (3,000) (8,592) (9,034)
during the period
Balance at the end of the period - - 3,024 3,071
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 each
Statement of Financial Position date, 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 financial periods.
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.
5. Segment information
Unaudited Unaudited
30 Sep 2017 30 Sep
2016
US$ 000 US$ 000
Revenue
Supermarkets 231,973 202,029
Agriculture 12,927 10,223
Hotels 8,685 7,688
Departmental stores 1,040 2,572
Wholesaling 89 4,107
Corporate* (725) (721)
253,989 225,898
EBITDA
Supermarkets 13,229 9,577
Agriculture 2,980 1,444
Hotels 2,101 1,140
Departmental stores (825) (467)
Wholesaling (948) (1,158)
Corporate* (1,277) (982)
15,260 9,554
The EBITDA figures are before Group management fees.
NOTES TO THE ABRIDGED UNAUDITED FINANCIAL RESULTS
5. Segment information (continued)
Unaudited Audited
30 Sep 2017 31 March
2017
US$ 000 US$ 000
Segment assets
Supermarkets 108,937 98,532
Agriculture 76,451 76,038
Hotels 46,467 46,460
Departmental stores 26,473 26,899
Wholesaling 4,988 4,196
Corporate* 26,807 30,525
290,123 282,650
Segment liabilities
Supermarkets 50,479 43,314
Agriculture 29,557 30,944
Hotels 22,263 22,782
Departmental stores 18,108 17,286
Wholesaling 10,237 8,690
Corporate* 29,236 30,994
159,880 154,010
*Intercompany transactions and balances have been eliminated from the corporate
amounts. Corporate also includes other subsidiaries that are immaterial to
warrant separate disclosure.
Unaudited Unaudited
30 Sep 2017 30 Sep
2016
6. Other information US$ 000 US$ 000
Depreciation of property, plant and equipment and investment 6,566 5,361
property
Impairment of property, plant and equipment 92 637
Capital commitments authorised by the Directors but not - 13,466
contracted for
Group's share of capital commitments of joint operations 3,000 2,641
Unaudited Audited
30 Sep 2017 31 March
2017
US$ 000 US$ 000
7. Net borrowings
Non-current borrowings 15,446 9,241
Current borrowings 50,816 56,977
Total borrowings 66,262 66,218
Cash and cash equivalents (27,552) (15,637)
Net borrowings 38,710 50,581
Comprising:
Secured 55,453 55,773
Unsecured 10,809 10,445
66,262 66,218
The weighted average cost of borrowings for the year was 13.90% per annum (31
March 2017: 13.63% per annum).
The Group has issued cross company guarantees worth US$35.2 million (31 March
2017: US$29.8 million) for Group borrowing facilities.
NOTES TO THE ABRIDGED UNAUDITED FINANCIAL RESULTS
8. Discontinued operation
On 31 August 2017, the Company signed an agreement to dispose of Tuscarora
Investments (Private) Limited (trading as Meikles Financial Services), which
carried out the Group's financial services operations. The proceeds of sale
exceeded the carrying amount of the related net assets and, accordingly, no
impairment losses were recognised. The disposal of the financial services
operations is consistent with the Group's long-term policy to focus its
activities on its main segments, namely retail, agriculture, hospitality,
wholesaling and security services. The results of the discontinued operations
included in profit for the period are as set out below. The comparative profit
and cash flows from discontinued operation have been re-presented to include
the operation classified as discontinued in the current period.
Unaudited Unaudited
30 Sep 30 Sep
2017 2016
US$ 000 US$ 000
Profit / (loss) for the period from discontinued operation
Net fees and commission income 297 310
Net operating costs (518) (396)
Operating loss (221) (86)
Investment income 11 2
Interest expense (4) (12)
Loss before tax (214) (96)
Income tax credit - 20
Loss for the period (214) (76)
Profit on disposal of operation 768 -
Profit / (loss) for the period from discontinued operation 554 (76)
Cash flows from discontinued operation
Net cash outflows from operating activities (98) (280)
Net cash flows from investing activities 1 (33)
Net cash inflows from financing activities 168 283
Net cash flows from discontinued operation 71 (30)
Unaudited
Analysis of assets and liabilities over which control was lost 30 Sep
2017
US$ 000
Current assets
Cash and cash equivalents 224
Other financial assets 1,156
Trade and other receivables 255
Inventory 7
Non-current assets
Property, plant and equipment 197
Deferred tax asset 216
Current liabilities
Trade and other payables (1,763)
Net assets disposed off 292
Proceeds on disposal 1,060
Profit on disposal of operation 768
Meikles Limited Website : http://www.meiklesltd.com/
END
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November 24, 2017 02:00 ET (07:00 GMT)
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