Meikles Ld Trading Update

 
TIDMMIK 
 
MEIKLES LIMITED 
 
TRADING UPDATE FOR THE FOURTH QUARTER AND FULL YEAR TO 31 MARCH 2020 
 
COVID-19 IMPACT 
 
The Group has repaid all bank borrowings other than limited ZWL bank borrowings 
restricted to the export sectors of the Group.  All of these borrowings are 
offset by greater sums on deposit in banks, both US$ and ZWL, the Group as a 
whole being cash positive.  Cash flows are also positive, with the result that 
the Group foresees no difficulties in funding its development plans and its 
working capital requirements. The Group is able to continue paying dividends to 
its shareholders. 
 
Both Tanganda and TM Supermarkets continue to trade with a positive variance 
relative to sales and profit targets set prior to the advent of COVID-19. 
Tanganda is progressing on the installation of solar power. The lockdown has 
caused some delay, but 72 percent of the project consisting of 5.4 Megawatts 
("MW") will be completed within the next six months. The balance of 2.15 MW 
will be completed thereafter. 
 
The Victoria Falls Hotel closed at the outbreak of the virus and its date of 
reopening is uncertain. However, the hotel has financial resources of its own 
to survive a prolonged period of closure on care and maintenance. The 
renovation project has been placed on hold. The Cape Grace Hotel in Cape Town 
has also been closed and is on care and maintenance, but in financial terms it 
has similar financial resources as the Victoria Falls Hotel. 
 
Overall the Group believes that it will progress in a satisfactory position of 
financial strength and profitability in the foreseeable future, within targets 
of performance established before the advent of COVID-19. The lockdown has 
caused certain commercial difficulties, but management have an appropriate 
response to challenges. 
 
The Group is well equipped on materials required for the safety of both 
employees and customers. 
 
The Group along with the Meikle Foundation continues to assist the community in 
its fight against the ravages of the coronavirus. 
 
SEGMENTS PERFORMANCE 
 
Supermarkets 
 
Sales volume retreated by 10% and 21% for the quarter and full year 
respectively, compared to the same period last year. Fourth quarter sales 
volume was enhanced by bulk buying of supplies by consumers after Covid-19 was 
declared a state of national disaster on 14 March 2020. 
 
Agriculture 
 
The volume of Macadamia and Avocado export sales for the full year grew by 129% 
and 39% respectively compared to the same period last year. This growth is 
production as well as sales has more than offset a decline in tea production 
for the quarter by 10% and by 18% for the full financial year.  Sales of tea in 
the local market and in packeted form have declined but not to the extent of 
the overall decline in market volumes. 
 
Hospitality 
 
Room occupancy retreated by 20.79 and 9.66 percentage points for the quarter 
and full year respectively against the comparative period for the operation in 
Victoria Falls.  Room occupancy for the fourth quarter was adversely impacted 
by the outbreak of COVID-19.  Meikles Hotel disposal took effect on 1 March 
2020. Room occupancy at Meikles Hotel was 1.96 percentage ahead of the first 
two months of the same quarter last year. Occupancy for eleven months to 29 
February 2020 declined by 8.60 percentage points compared to the same period 
last year. 
 
GROUP FINANCIAL PERFORMANCE 
 
Group financial performance for the quarter and for the full year to 31 March 
2020 is anticipated to be well in excess of the half year period ended 30 
September 2019. 
 
By Order of the Board 
T Mpofu 
Company Secretary 
 
15 May 2020 
 
 
 
END 
 

(END) Dow Jones Newswires

May 15, 2020 04:10 ET (08:10 GMT)