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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 0.0% 0.00 -
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Unknown 791.6 81.5 21.0 0.0 0

Meikles Ld Reviewed Condensed Financial Statements to 30 Sept 2020

26/11/2020 8:53am

UK Regulatory (RNS & others)


 
TIDMMIK 
 
MEIKLES LIMITED 
 
       REVIEWED CONDENSED FINANCIAL STATEMENTS FOR THE SIX MONTHSED 
 
                               30 SEPTEMBER 2020 
 
CHAIRMAN'S STATEMENT 
 
Operating environment 
 
The trading environment during the period under review remained turbulent and 
was exacerbated by the effects of the COVID-19 pandemic. 
 
The effects of COVID-19 on the Group's operations were mitigated by various 
measures implemented by the Government and the Group. Both Agriculture and 
Supermarkets segments were designated essential services and continued 
operating during the lockdown period albeit at reduced daily trading hours. 
Consequently, sales volumes declined during the period under review compared to 
the same period of the previous financial year. The hospitality segment's 
operations were closed for the entire six months under review. 
 
Group Financial Overview 
 
The Group remains in a sound financial position with cash in hand substantially 
exceeding borrowings. The Board plans to maintain this cash positive position 
for the foreseeable future. 
 
Group expansion and renovation projects completed and initiated during the 
period under review are estimated at ZWL 2 billion. The return on these 
projects will benefit the Group, partly in the current financial year and 
partly in the following year. 
 
The Group strategy is based on an enhancement over time of its different 
segments and on a fair distribution by way of dividend to its shareholders. 
 
Shareholders are being asked to approve a share buyback scheme at the upcoming 
Annual General Meeting, but implementation will be guided largely by expected 
receipt of funds on deposit with Government. Shareholders are advised that 
negotiations leading to the receipt of these funds are progressing with some 
traction. 
 
Group Financial Performance 
 
The Group fared well against the impediments brought about by the COVID-19 
pandemic. 
 
Inflation adjusted Group revenue of ZWL 11.2 billion retreated by 8% compared 
to the same period of the previous year due to COVID-19 induced decline in 
sales volumes across the Group's operations. 
 
In historical cost terms, Group revenue grew by 683% to ZWL 8.4 billion 
(Previous year: ZWL 1.1 billion) reflecting the effect of inflation driven 
price increases and exchange rate movement on local and export sales 
respectively. 
 
Group operating profit from continuing operations for the period in inflation 
adjusted terms was ZWL 660.4 million (previous year: ZWL 1.1 billion). 
 
Group operating profit for the period in historical cost terms grew by 682% to 
ZWL 1.7 billion from ZWL 212.3 million in the same period of previous year. 
 
Inflation adjusted Group Profit after tax of ZWL 189 million (Previous period: 
ZWL 2.1 billion) was impacted adversely by the monetary loss of ZWL 1.1 billion 
arising from the US$ denominated bank and receivable balances. 
 
Group Profit after tax for the six month period, amounted to ZWL 1.9 billion 
expressed in terms of historical cost (Previous year: ZWL 160.1 million), an 
increase of 1087% boosted by exchange gains. 
 
Group net current assets denominated in foreign currency on 30 September 2020 
were US$ 18.7 million.  The Group's statement of financial position remains 
strong despite COVID-19 disruptions during the period under review. 
 
TM Supermarkets trading as TM and PnP 
 
Revenue for the period was ZWL 10.0 billion in inflation adjusted terms 
(Previous period: ZWL 10.8 billion). Units sold declined by 31% during the 
period under review due to COVID-19 restrictions and shrinking disposable 
incomes. The segment lost trading days as seven branches closed for days for 
disinfection purposes following COVID-19 cases. 
 
Operating profit for the period amounted to ZWL 306.1 million in inflation 
adjusted terms, compared to ZWL 411.7 million achieved in the previous period. 
 
In historical cost terms the operating profit for the period amounted to ZWL 
1.1 billion up from ZWL 114.8 million in the previous period. 
 
Despite constraints brought about by COVID-19, the segment opened a new store 
in Aspindale, Harare in July 2020. Work is at an advanced stage for another new 
branch in Harare that should be opened before the end of December 2020. The 
store in Hwange was closed for major renovations and will reopen before the end 
of December 2020 under the Pick n Pay brand. 
 
Tanganda 
 
Revenue of ZWL 935 million in inflation adjusted terms was 15% lower than ZWL 
1.1 billion achieved during the six months ended 30 September 2019. 
 
Operating profit in inflation adjusted terms was ZWL 402.9 million compared 
with ZWL 604.5 million in the previous period. In the past season all crops 
were affected by lack of rain and power. 
 
Operating profit in historical cost terms was ZWL 573.6 million (previous 
period ZWL 95.4 million). 
 
Bulk tea export sales of 3 282 tonnes were 11% lower than 3 669 tonnes sold in 
the comparative period last year. Average international bulk tea export price 
for the period retreated to US$1.35/kg from US$1.47/kg in the six months' 
period to 30 September 2019. Bulk tea production for the period declined by 17% 
primarily due to adverse weather. Packed tea sales volumes grew by 14%. 
 
The volume of Macadamia production declined by 37% from 854 tonnes in prior 
year season down to 537 tonnes attributed to the drought and failure to 
irrigate crops due to power losses. The average price of primary grades of 
US$5.37 was 8% firmer than in the prior period. 
 
The volume of avocado export sales grew by 15% to 1671 tonnes from 1 450 tonnes 
in the comparative period. However, due to the lockdowns in Europe that 
resulted in massive closure of restaurants and hotels, the avocado average 
selling price declined by 37% from US$1.62/kg in the half year ended 30 
September 2019 down to US$1.02/kg for six months ended 30 September 2020. 
 
The construction of the 1.8 Mega Watt solar farm at Ratelshoek, Chipinge was 
completed in September 2020. The plant is now supplying power for irrigation 
and acting as a standby source of power for the factory, supported by diesel 
generators when power supply from the National grid is interrupted. During the 
current power outages 70% diesel savings have been realised when compared with 
prior year usage. Two more solar power plants are under construction at 
Tingamira and Jersey estates and are scheduled for completion by January 2021. 
 
Tanganda's contribution to foreign currency generation was recognised by 
Zimtrade as the segment was awarded 'Processed Foods - exporter of the year 
award 2019'. 
 
Hospitality 
 
The segment's operations in Victoria Falls were affected for the entire period 
under review as international tourism and travel was disrupted by the COVID-19 
pandemic. The hotel reopened on 1 November 2020. Our current focus is on the 
refurbishment roll out that is scheduled to commence at the beginning of 2021. 
 
Operating profit in inflation adjusted terms was ZWL 33.3 million compared to 
the previous period of ZWL 154.2 million. 
 
Properties 
 
Plans to transform and reconfigure the Group's properties have been finalised 
and roll out has commenced. Some of the properties will be disposed of and 
proceeds reinvested in strategic locations. 
 
 
Group leadership 
 
Three independent non-executive directors were appointed to the main board on 
31 July 2020 in line with the Companies and Other Business Entities Act and 
Zimbabwe Stock Exchange Listings Requirements.  Executive management structures 
are being reviewed ahead of the stepping down of the Executive Chairman from 
the executive role to become non-executive Chairman on 31 March 2020. 
 
 
Outlook 
The Group is well placed to take advantage of opportunities that may arise as 
it has substantial resources to support its strategies. To this end, capital 
projects across the subsidiaries will be completed as planned. 
 
There are strong indications that the forthcoming agricultural season will be 
more positive than the previous two seasons, which augurs well for Tanganda. 
 
The COVID-19 induced decline in volumes experienced at TM Pick n Pay appears to 
have eased. 
 
Corporate Social Responsibility 
 
The Group supported the fight against COVID-19 through its subsidiaries and the 
Meikles Foundation.  Supermarket segment donated face masks to customers 
through the branch network and accelerated the distribution of food hampers as 
well as blankets to elderly homes and orphanages.  In addition, the segment 
partnered with Zimbabwe Broadcasting Corporation (ZBC) to raise awareness of 
the COVID-19 pandemic and recommended precautionary measures targeting both 
urban and rural communities.  Tanganda contributed to the construction of 
provincial and district COVID-19 isolation centres.  Meikles Foundation 
provided food stuffs to vulnerable members of society in Epworth. 
 
Dividend 
 
The Company intends to declare two interim dividends and a final dividend based 
on profits for the year. The first interim dividend declared is ZWL 42.5 cents 
per share amounting to ZWL 111.0 million which is the same as the final 
dividend in the previous year. 
 
 
Appreciation 
 
I would like to extend my appreciation to our customers, suppliers, 
shareholders, and regulatory authorities for their continued support. I extend 
also my appreciation to my fellow Directors, and to management and staff for 
their dedication and commitment. 
 
JRT Moxon 
 
Executive Chairman 
 
25 November 2020 
 
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME 
 
FOR THE SIX MONTHSED 30 SEPTEMBER 2020 
 
                                                          INFLATION ADJUSTED       HISTORICAL COST* 
 
                                                           Reviewed    Unaudited   Unaudited Unaudited 
 
                                                        30 Sep 2020  30 Sep 2019 30 Sep 2020    30 Sep 
                                                                                                  2019 
 
CONTINUING OPERATIONS                                       ZWL 000      ZWL 000     ZWL 000   ZWL 000 
 
Revenue                                                  11,218,926   12,147,997   8,411,317 1,074,373 
 
Net operating costs                                    (10,558,505) (11,056,642) (6,750,237) (862,060) 
 
Operating profit                                            660,421    1,091,355   1,661,080   212,313 
 
Investment income                                             5,150          532         841        44 
 
Finance costs                                             (121,556)     (75,599)   (101,374)   (5,670) 
 
Net exchange gains / (losses)                             1,428,081    (111,581)   1,050,643     3,231 
 
Fair value adjustments on biological assets               (495,029)     (54,631)   (156,034)   (6,901) 
 
Net monetary (loss) / gain                                (684,721)    1,290,819           -         - 
 
Profit before tax                                           792,346    2,140,895   2,455,156   203,017 
 
Income tax expense                                        (603,914)    (359,607)   (523,569)  (44,482) 
 
Profit for the period from continuing operations            188,432    1,781,288   1,931,587   158,535 
 
DISCONTINUED OPERATION 
 
Profit / (loss) for the period from discontinued                906      328,077    (46,553)     1,548 
operation 
 
Profit for the period                                       189,338    2,109,365   1,885,034   160,083 
 
Other comprehensive income, net of tax 
 
Items that may be reclassified subsequently to 
profit or loss: 
 
    Exchange rate and monetary adjustments on               236,206      236,602     993,740   336,380 
translation of foreign operations 
 
Other comprehensive income for the period, net of           236,206      236,602     993,740   336,380 
tax 
 
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD                   425,544    2,345,967   2,878,774   496,463 
 
Profit for the period attributable to: 
 
     Owners of the parent                                    75,723    1,691,238   1,541,784   134,983 
 
     Non-controlling interests                              113,615      418,127     343,250    25,100 
 
                                                            189,338    2,109,365   1,885,034   160,083 
 
Total comprehensive income is attributable to: 
 
     Owners of the parent                                   311,929    1,927,840   2,535,524   471,363 
 
     Non-controlling interests                              113,615      418,127     343,250    25,100 
 
                                                            425,544    2,345,967   2,878,774   496,463 
 
Earnings per share (cents) 
 
Basic earnings per share from continuing and                  29.01       647.82      590.58     51.70 
discontinued operations 
 
Basic earnings per share from continuing operations           28.66       522.15      608.41     51.11 
 
Diluted earnings per share from continuing and                27.21       607.73      554.03     48.51 
discontinued operations 
 
Diluted earnings per share from continuing                    26.88       489.84      570.76     47.95 
operations 
 
Headline earnings per share from continuing and               28.75       648.01      589.96     51.77 
discontinued operations 
 
Headline earnings per share from continuing                   28.28       522.00      607.79     47.70 
operations 
 
Diluted headline earnings per share from continuing           26.98       607.91      553.45     48.57 
and discontinued operations 
 
Diluted headline earnings per share from continuing           26.53       489.70      570.18     44.75 
operations 
 
 
CONSOLIDATED STATEMENT OF FINANCIAL POSITION 
 
AS AT 30 SEPTEMBER 2020 
 
                                                     INFLATION ADJUSTED     HISTORICAL COST* 
 
                                                      Reviewed    Audited  Unaudited  Unaudited 
 
                                                        30 Sep     31 Mar     30 Sep     31 Mar 
                                                          2020       2020       2020       2020 
 
                                                       ZWL 000    ZWL 000    ZWL 000    ZWL 000 
 
ASSETS 
 
Non-current assets 
 
Property, plant and equipment                        6,758,249  6,643,826    720,299    403,617 
 
Investment property                                      7,904      7,993        228        231 
 
Right of use assets                                  1,465,955  1,086,871    398,907     75,885 
 
Investment in Mentor Africa (Pty) Limited              559,727    467,536    559,727    171,813 
 
Biological assets                                       42,163     61,234     42,163     22,503 
 
Intangible assets                                        4,272      4,272        124        124 
 
Other financial assets                                 869,274    719,396    866,592    263,440 
 
Deferred tax                                               353        189     78,029     20,637 
 
Total non-current assets                             9,707,897  8,991,317  2,666,069    958,250 
 
Current assets 
 
Inventories                                          2,246,657  2,109,719  2,007,275    565,008 
 
Trade and other receivables                          2,104,779  1,692,840  2,072,374    606,212 
 
Biological assets - produce on bearer                        -    509,002          -    187,052 
plants 
 
Other financial assets                                   6,009      9,641      6,009      3,543 
 
Cash and bank balances                                 665,849    714,225    665,849    262,469 
 
Non-current assets held for sale                            13      1,055          6          9 
 
Total current assets                                 5,023,307  5,036,482  4,751,513  1,624,293 
 
Total assets                                        14,731,204 14,027,799  7,417,582  2,582,543 
 
EQUITY AND LIABILITIES 
 
Capital and reserves 
 
Share capital                                           89,401     89,401      2,611      2,611 
 
Share premium                                          111,561    111,561      3,925      3,925 
 
Other reserves                                         148,464   (93,508)  1,389,511    395,603 
 
Retained earnings                                    7,379,329  7,444,436  2,431,504  1,020,252 
 
Equity attributable to equity holders of             7,728,755  7,551,890  3,827,551  1,422,391 
the parent 
 
Non-controlling interests                            2,376,786  2,272,661    512,215    177,063 
 
Total equity                                        10,105,541  9,824,551  4,339,766  1,599,454 
 
Non-current liabilities 
 
Borrowings                                              81,269     79,771     81,269     29,314 
 
Lease liabilities                                      450,318    248,613    450,318     91,527 
 
Deferred tax                                         1,822,849  1,767,605    275,002     88,022 
 
Total non-current liabilities                        2,354,436  2,095,989    806,589    208,863 
 
Current liabilities 
 
Trade and other payables                             2,091,814  2,004,900  2,091,814    736,775 
 
Borrowings                                             153,518     83,779    153,518     30,788 
 
Lease liabilities                                       25,895     18,580     25,895      6,663 
 
Total current liabilities                            2,271,227  2,107,259  2,271,227    774,226 
 
Total liabilities                                    4,625,663  4,203,248  3,077,816    983,089 
 
Total equity and liabilities                        14,731,204 14,027,799  7,417,582  2,582,543 
 
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 
 
FOR THE SIX MONTHSED 30 SEPTEMBER 2020 
 
INFLATION ADJUSTED 
 
                                        Share      Share 
                                      capital    premium       Other    Investment 
                                                            reserves   revaluation 
 
                                      ZWL 000    ZWL 000     ZWL 000       ZWL 000 
 
2020 - Reviewed 
 
Balance at 1 April 2020                89,401    111,561     788,663     (882,171) 
 
Profit for the period                       -          -           -             - 
 
Restatement of property                     -          -       5,766             - 
 
Other comprehensive income for the          -          -     236,206             - 
period 
 
Dividend paid - ordinary                    -          -           -             - 
shareholders 
 
Non-controlling interests arising           - 
from Mopani Property Development                       -           -             - 
(Private) Limited 
 
Balance at 30 September 2020           89,401    111,561   1,030,635     (882,171) 
 
2019 - Unaudited 
 
Balance at 1 April 2019                89,344    102,416   2,168,566       165,078 
 
Profit for the period                       -          -           -             - 
 
Transfer from non-distributable             -          -   (189,851)             - 
reserves 
 
Other comprehensive income for the          -          -     236,602             - 
period 
 
Dividend paid - ordinary                    -          -           -             - 
shareholders 
 
Non-controlling interests arising           - 
from Mopani Property Development                       -           -             - 
(Private) Limited 
 
Balance at 30 September 2019           89,344    102,416   2,215,317       165,078 
 
 
 
INFLATION ADJUSTED 
 
                                            Attributable   Non-controlling      Total 
                                  Retained   to owners of        interests 
                                  earnings         parent 
 
                                   ZWL 000        ZWL 000          ZWL 000    ZWL 000 
 
2020 - Reviewed 
 
Balance at 1 April 2020          7,444,436      7,551,890        2,272,661  9,824,551 
 
Profit for the period               75,723         75,723          113,615    189,338 
 
Restatement of property                  -          5,766                -      5,766 
 
Other comprehensive income for           -        236,206                -    236,206 
the period 
 
Dividend paid - ordinary         (140,830)      (140,830)         (10,453)  (151,283) 
shareholders 
 
Non-controlling interests                               -              963        963 
arising from Mopani Property             - 
Development (Private) Limited 
 
Balance at 30 September 2020     7,379,329      7,728,755        2,376,786 10,105,541 
 
2019 - Unaudited 
 
Balance at 1 April 2019          4,463,277      6,988,681        1,313,409  8,302,090 
 
Profit for the period            1,691,238      1,691,238          418,127  2,109,365 
 
Transfer from non-distributable    189,851              -                -          - 
reserves 
 
Other comprehensive income for           -        236,602                -    236,602 
the period 
 
Dividend paid - ordinary         (152,060)      (152,060)                -  (152,060) 
shareholders 
 
Non-controlling interests                               -           47,011     47,011 
arising from Mopani Property             - 
Development (Private) Limited 
 
Balance at 30 September 2019     6,192,306      8,764,461        1,778,547 10,543,008 
 
HISTORICAL COST* 
 
                                        Share      Share                Investment 
                                      capital    premium       Other   revaluation 
                                                            reserves 
 
                                      ZWL 000    ZWL 000    ZWL 000       ZWL 000 
 
2020 - Unaudited 
 
Balance at 1 April 2020                 2,611      3,925     654,854     (259,251) 
 
Profit for the period                       -          -           -             - 
 
Restatement of property                     -          -         168             - 
 
Other comprehensive income for the          -          -     993,740             - 
period 
 
Dividend paid - ordinary                    -          -           -             - 
shareholders 
 
Non-controlling interests arising           - 
from Mopani Property Development                       -           -             - 
(Private) Limited 
 
Balance at 30 September 2020            2,611      3,925   1,648,762     (259,251) 
 
2019 - Unaudited 
 
Balance at 1 April 2019                 2,611      3,925      74,529       (9,600) 
 
Profit for the period                       -          -           -             - 
 
Transfer from non-distributable             -          -    (25,000)             - 
reserves 
 
Other comprehensive income for the          -          -     336,380             - 
period 
 
Dividend paid - ordinary                    -          -           -             - 
shareholders 
 
Non-controlling interests arising           - 
from Mopani Property Development                       -           -             - 
(Private) Limited 
 
Balance at 30 September 2019            2,611      3,925     385,909       (9,600) 
 
 
 
                                            Attributable   Non-controlling      Total 
                                  Retained   to owners of        interests 
                                  earnings         parent 
 
                                   ZWL 000        ZWL 000          ZWL 000    ZWL 000 
 
2020 - Unaudited 
 
Balance at 1 April 2020          1,020,252      1,422,391          177,063  1,599,454 
 
Profit for the period            1,541,784      1,541,784          343,250  1,885,034 
 
Restatement of property                  -            168                -        168 
 
Other comprehensive income for           -        993,740                -    993,740 
the period 
 
Dividend paid - ordinary         (130,532)      (130,532)          (8,729)  (139,261) 
shareholders 
 
Non-controlling interests                               -              631        631 
arising from Mopani Property             - 
Development (Private) Limited 
 
Balance at 30 September 2020     2,431,504      3,827,551          512,215  4,339,766 
 
2019 - Unaudited 
 
Balance at 1 April 2019            131,914        203,379           48,999    252,378 
 
Profit for the period              134,983        134,983           25,100    160,083 
 
Transfer from non-distributable     25,000              -                -          - 
reserves 
 
Other comprehensive income for           -        336,380                -    336,380 
the period 
 
Dividend paid - ordinary          (20,024)       (20,024)                -   (20,024) 
shareholders 
 
Non-controlling interests                               -            6,190      6,190 
arising from Mopani Property             - 
Development (Private) Limited 
 
Balance at 30 September 2019       271,873        654,718           80,289    735,007 
 
 
 
CONSOLIDATED STATEMENT OF CASHFLOWS 
 
FOR THE SIX MONTHSED 30 SEPTEMBER 2020 
 
                                                      INFLATION ADJUSTED       HISTORICAL COST* 
 
                                                    Reviewed   Unaudited   Unaudited  Unaudited 
 
                                                 30 Sep 2020 30 Sep 2019 30 Sep 2020     30 Sep 
                                                                                           2019 
 
                                                    ZWL 000     ZWL 000     ZWL 000    ZWL 000 
 
CONTINUING AND DISCONTINUED OPERATIONS 
 
 
Cash flows from operating activities 
 
Profit / (loss) before tax - continuing              792,346   2,140,895   2,455,156    203,017 
operations 
 
                       - discontinued operations         906     325,040    (46,553)      1,548 
 
                                                     793,252   2,465,935   2,408,603    204,565 
 
Adjustments for: 
 
- Depreciation and impairment of property, plant     323,995     141,378      49,161      9,934 
and equipment, investment property and 
right-of-use assets 
 
- Net interest                                       120,487      81,575     103,706      5,626 
 
- Net exchange (gains) / losses                  (1,376,887)     143,231 (1,012,668)      1,711 
 
- Fair value adjustments on biological assets        495,029      54,631     156,034      6,901 
 
- Profit on disposal of property, plant and          (1,734)     (9,348)     (1,785)    (1,048) 
equipment - continuing operations 
 
- Profit on disposal of property, plant and            (706)           -       (575)          - 
equipment - discontinued operations 
 
Operating cash flow before working capital           353,436   2,877,402   1,702,476    227,689 
changes 
 
(Increase) / decrease in inventories               (136,938)     181,011 (1,442,267)  (131,459) 
 
(Increase) / decrease in trade and other           (205,296)     121,937   (357,694)   (21,949) 
receivables 
 
(Decrease) / increase in trade and other           (170,011)   (224,874)   1,061,915    171,767 
payables 
 
Cash (used in) / generated from operations         (158,809)   2,955,476     964,430    246,048 
 
Income taxes paid                                  (422,593)   (249,160)   (268,047)   (34,624) 
 
Net cash (used in) / generated from operating      (581,402)   2,706,316     696,383    211,424 
activities 
 
Cash flows from investing activities 
 
Payment for property, plant and equipment          (402,837) (1,092,143)   (336,954)   (95,100) 
 
Proceeds from disposal of property, plant and          2,530      11,102       2,363      1,220 
equipment 
 
Net movement in service assets                            15     (1,192)           6      (115) 
 
Net movement in other  investments                  (10,409)         167    (16,526)         37 
 
Net movement in biological assets                     33,044       (714)      11,357        820 
 
Investment income                                        440       1,002         213         44 
 
Net cash used in investing activities              (377,217) (1,081,778)   (339,541)   (93,094) 
 
Cash flows from financing activities 
 
Net increase / (decrease) in interest bearing         71,238    (26,222)     174,685    (3,453) 
borrowings 
 
Non-controlling interests arising from Mopani            963      47,011         631      6,190 
Property Development (Private) Limited 
 
Finance costs                                      (121,556)    (82,570)    (98,430)    (5,670) 
 
Lease movement                                        26,112      38,076      26,112         96 
 
Dividend paid - ordinary shareholders              (111,974)   (152,063)   (109,396)   (20,024) 
 
                       -minorities                  (10,453)           -     (8,729)          - 
 
Net cash used in financing activities              (145,670)   (175,768)    (15,127)   (22,861) 
 
Net (decrease) / increase in cash and bank       (1,104,289)   1,448,770     341,715     95,469 
balances 
 
Cash and bank balances at the beginning of the       714,225     697,185     262,469    33,,006 
period 
 
Translation of foreign entity                      (844,320)   (734,274)      11,245      2,578 
 
Restatement of property, plant and equipment           5,766           -         168          - 
 
Net effect of exchange rate changes on cash and    1,290,654   (414,983)      50,252      2,680 
bank balances 
 
Effects of inflation adjustments                     603,813      18,747           -          - 
 
Cash and bank balances at the end of the period      665,849   1,015,445     665,849    133,733 
 
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 
 
1. Basis of preparation 
 
The condensed consolidated 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. The historical costs have been 
adjusted for the effects of applying International Accounting Standard ("IAS") 
29 - 'Financial Reporting in Hyperinflationary Economies' . Refer to note 2.3 
for further details. 
 
These condensed consolidated financial statements have been prepared in 
accordance with the International Accounting Standard ("IAS") 34 Interim 
Financial Reporting and should be read in conjunction with the Group's annual 
report for the full year to 31 March 2020. 
 
These condensed consolidated financial statements have been prepared under the 
supervision of Thempson Muzvangwandoga CA (Z), the Group Chief Financial 
Officer, registered public accountant PAAB Number 2724. 
 
2. Accounting policies 
 
Accounting policies and methods of computation applied in the preparation of 
these condensed consolidated financial statements are consistent, in all 
material respects, with those used in the preparation of the annual report. New 
applicable standards and improvements which became effective in the current 
year have been complied with and have had no material impact on these condensed 
consolidated financial statements. 
 
2.1 Functional and presentation currency 
 
These condensed consolidated financial statements are presented in Zimbabwe 
dollars (ZWL), which is the Group's functional and presentation currency. The 
ZWL was designated as the sole transactional, functional and reporting currency 
following the promulgation of Statutory Instrument 33 of 2019 dated 22 February 
2019 and Statutory Instrument 142 of 2019 dated 24 June 2019. 
 
2.2 Historical reporting* 
 
Historical cost financial results are provided only as supplementary 
information. The primary financial statements are the inflation adjusted 
results. The auditor's review conclusion relates only to the inflation adjusted 
financial results. 
 
2.3 Hyperinflation 
 
On 11 October 2019, the Public Accountants and Auditors Board ("PAAB") issued a 
pronouncement on the application of IAS 29. The pronouncement requires that 
entities operating in Zimbabwe with financial periods ending on or after 1 July 
2019, prepare and present financial statements in line with the requirements of 
IAS 29. 
 
The Directors have made appropriate adjustments to reflect the changes in the 
general purchasing power on the ZWL and for the purposes of fair presentation 
in accordance with IAS 29, these changes have been made on the historical cost 
financial information. Various assumptions have been made, with the significant 
assumption being the use of the consumer price indices ("CPI"), for the various 
years. Accordingly, the inflation adjusted condensed consolidated financial 
statements represent the primary financial results of the Group. 
 
The source of the price indices used was the Reserve Bank of Zimbabwe website. 
Below are the indices and adjustment factors used up to 30 September 2020: 
 
                                                                                  Adjustment 
                                                                          Indices     Factor 
 
CPI as at 30 September 2020                                              2,205.24       1.00 
 
CPI as at 31 March 2020                                                    810.40       2.72 
 
CPI as at 30 September 2019                                                290.40       7.59 
 
Average CPI 2020                                                         1,630.69 
 
Average CPI 2019                                                           192.12 
 
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 
2020, the Directors have assessed the Group's ability to continue operating as 
a going concern and believe that the preparation of these condensed 
consolidated financial statements on a going concern basis is still 
appropriate. 
 
The Group's segments have put in place various measures to mitigate the adverse 
impact of the COVID-19 pandemic to the businesses. Apart from the hospitality 
segment, the rest of the Group's segments are operating as they are classified 
as part of essential services. Whilst lockdown restrictions have been eased, 
customer spending is still to fully recover in the Group's retail sector due to 
reduced disposable income. Gradual revenue growth is anticipated in the second 
half of the financial year. 
 
The Victoria Falls Hotel, which closed at the end of March 2020, re-opened on 
the 1st of November 2020 following resumption of domestic and limited 
international flights after the Government of Zimbabwe eased restrictions in 
September 2020. However, revenue is still subdued as new cases of COVID-19 
infections are on the rise in major source markets. The Cape Grace Hotel 
remains closed as South Africa still has stringent protocols for visitors 
entering the country from major tourist source markets. 
 
Both the hospitality segment and the rest of the Group have sufficient cash 
resources to fund operations for a prolonged period of care and maintenance. 
 
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) 
 
4. Segment information 
 
                                                       INFLATION ADJUSTED      HISTORICAL COST* 
 
                                                       Reviewed    Unaudited  Unaudited Unaudited 
 
                                                    30 Sep 2020  30 Sep 2019     30 Sep    30 Sep 
                                                                                   2020      2019 
 
Revenue - continuing operations                         ZWL 000      ZWL 000    ZWL 000   ZWL 000 
 
Supermarkets                                         10,025,669   10,756,715  7,501,593   940,930 
 
Agriculture                                             934,539    1,101,423    750,909   104,271 
 
Hotels                                                  290,340      349,143    180,790    33,116 
 
Corporate*                                             (31,622)     (59,284)   (21,975)   (3,944) 
 
                                                     11,218,926   12,147,997  8,411,317 1,074,373 
 
Operating profit - continuing operations 
 
Supermarkets                                            306,093      411,730  1,136,240   114,781 
 
Agriculture                                             402,915      604,500    573,563    95,417 
 
Hotels                                                   33,297      154,212         52    14,985 
 
Corporate*                                             (81,884)     (79,087)   (48,775)  (12,870) 
 
                                                        660,421    1,091,355  1,661,080   212,313 
 
                                                                              HISTORICAL COST* 
                                                       INFLATION ADJUSTED 
 
                                                        Reviewed    Audited   Unaudited   Unaudited 
 
                                                          30 Sep     31 Mar 30 Sep 2020 31 Mar 2020 
                                                            2020       2020 
 
Segment assets                                           ZWL 000    ZWL 000     ZWL 000     ZWL 000 
 
Supermarkets                                           7,601,072  6,939,396   3,066,900     938,668 
 
Agriculture                                            3,761,658  3,800,051   1,546,247     635,265 
 
Hotels                                                 1,729,233  1,867,962   1,321,930     547,585 
 
Corporate*                                             1,639,241  1,420,390   1,482,505     461,025 
 
                                                      14,731,204 14,027,799   7,417,582   2,582,543 
 
Segment liabilities 
 
Supermarkets                                           3,076,850  2,621,187   2,038,343     593,171 
 
Agriculture                                              767,745    806,691     424,384     172,704 
 
Hotels                                                   495,881    404,922     490,197     143,733 
 
Corporate*                                               285,187    370,448     124,892      73,481 
 
                                                       4,625,663  4,203,248   3,077,816     983,089 
 
 
 
 
*Included in the corporate revenue amount is an adjustment of ZWL 73.5 million 
(2019: ZWL 95.6 million); (Historical cost ZWL 55.5 million (2019: ZWL 7.2 
million) against revenue in respect of inter-segment sales. Inter-company 
balances have been eliminated in the corporate amounts. Corporate also includes 
other operating segments that are immaterial to warrant separate disclosure. 
 
5. Fair value measurement 
 
5.1 Fair value hierarchy 
IFRS 13 Fair Value Measurement specifies a hierarchy of valuation techniques 
based on whether the inputs to those valuation techniques are observable or 
unobservable. Fair value measurements are categorised into Level 1, 2 or 3 
based on the degree to which the inputs to the fair value measurements are 
observable and the significance of the inputs to the fair value measurement in 
its entirety, which are described as follows: 
 
* Level 1 inputs are quoted prices (unadjusted) in active markets for identical 
assets or liabilities that the entity can access at the measurement date; 
* Level 2 inputs are inputs, other than quoted prices included within Level 1, 
that are observable for the asset or liability, either directly or indirectly; 
and 
* Level 3 inputs are unobservable inputs for the asset or liability. 
 
5.2 Valuation of Investment Mentor Africa (Pty) Limited ("Mentor") 
The Group's investment in Mentor Africa (Pty) Limited is carried at FVTOCI and 
is not held for trading. The investment is unlisted and there is no active 
market for similar or identical investments. In the absence of market activity 
and access to more observable level 1 or 2 inputs, the Group utilises level 3 
inputs to determine fair value. Valuations are performed by an independent 
expert valuer, and in preparing such valuation, assumptions are made relating 
to future events and financial performance. 
 
The investment is valued at a weighted average of three valuation methods, 
namely: the enterprise value ("EV"), price-to-book value ("PBV") and the 
price-to-earnings value ("PE"). The significant unobservable inputs used in 
these valuations are the EV, PBV and PE proxy multiples obtained from 
comparable entities listed on the Johannesburg Stock Exchange. The applicable 
non-trading discount is applied to the proxy multiples to reflect the 
non-tradability of the Mentor shares as they are not listed on a stock 
exchange. 
 
Fair valuations are performed annually at each financial year end, and hence no 
valuation has been done for these condensed consolidated financial statements. 
 
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) 
 
5. Fair value measurement (continued) 
 
5.3 Valuation of Biological assets 
 
Biological assets comprise of gum and wattle plantations, livestock and produce 
growing on the bearer plants. The present value of expected net cash flows from 
plantations, discounted at a current market determined pre-tax rate, was used 
to determine fair value of timber plantations. The fair value for livestock was 
determined by reference to the market price and these valuations were carried 
out by a professional valuer not connected to the Group. Produce growing on 
bearer plants is measured at fair value less costs to sell with changes 
recognised in profit or loss as the produce grows. 
 
Fair values of tea bushes on plantations, macadamia nuts on plantations, coffee 
beans on plantations and avocado fruit on plantations is determined using Level 
1 inputs on the fair value hierarchy, whilst fair values for timber plantations 
and livestock is determined using level 3 inputs. 
 
6. Discontinued operations 
 
Greatermans Stores 
 
The group exited the departmental stores segment during the first quarter of 
the previous financial year. The results of the departmental stores for the 
current year relate to winding down costs and proceeds from disposal of assets 
and are disclosed as discontinued operations in the current period. 
 
7. Subsequent events 
 
There were no siginificant events after the reporting date. 
 
8. External Auditor's Review Conclusion 
 
These condensed consolidated financial statements for the six months ended 30 
September 2020 have been reviewed by Deloitte & Touche (Chartered Accountants) 
Zimbabwe who indicate that nothing has come to their attention that causes them 
to believe that these inflation adjusted condensed consolidated financial 
statements are not prepared, in all material respects in accordance with IAS 34 
and the requirements of the Zimbabwe Stock Exchange Listings Requirements. 
 
The auditor's review statement is available for inspection at the Company's 
registered office and on the website. 
 
Meikles Limited Website : www.meiklesltd.com 
 
Notice to Shareholders 
 
Dividend declaration 
 
Notice is hereby given that the Board of Directors declared an Interim Dividend 
Number 83 of ZWL 42.5 per share payable out of the profits for the current 
financial year. The dividend will be payable on or about 18 December 2020. 
Disbursements to foreign shareholders is subject to Exchange Control Approval 
and payment guidelines for foreign payments. The timetable for the dividend 
payment is as follows: - 
 
Action                             Date 
 
Dividend announcement              25 November 2020 
 
Last date to trade cum dividend    8 December 2020 
 
Ex-dividend date                   9 December 2020 
 
Last record date                   11 December 2020 
 
Payment date                       18 December 2020 
 
Shareholders are encouraged to update their payment details through our 
transfer secretaries: 
 
ZB Transfer Secretaries, 21 Natal Road, Belgravia, Harare Zimbabwe 
 
PMberikwazvi@zb.co.zw 
 
RMutakwa@zb.co.zw 
 
By Order of the Board 
 
T. Mpofu 
 
Company Secretary 
 
25 November 2020 
 
 
 
END 
 

(END) Dow Jones Newswires

November 26, 2020 03:53 ET (08:53 GMT)

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