Meikles HY profit after tax up 467%

Group chairman, Mr John Moxon

THE Zimbabwe Stock Exchange-listed conglomerate, Meikles Limited’s profit after tax for the half-year ended September 30, 2018 grew by 467 percent to $15,3 million from $2,7 million realised last year.

The group’s revenue for the period under review grew by 30 percent to $330,8 million from $254 million in the comparable period.

In its unaudited financial statement for the period under review, the group also said profit after tax had surpassed the result of the full financial year ended March 31, 2018 of $7,7 million by 99 percent.

Group chairman, Mr John Moxon, said in a statement accompanying the financial results: “Earnings before interest, tax, depreciation and amortisation for the period rose by 107 percent to $31,5 million from the previous year’s result of $15,2 million.

“Progress is being made in raising long-term finance. On completion, short-term loans and overdue current liabilities will be paid off.”

Meikles Limited owns TM Supermarkets trading as TM Pick n Pay, Tanganda, Meikles Hotel, Victoria Falls Hotel and Meikles Stores. During the period TM Pick n Pay supermarkets realised revenue amounting to $305,6 million reflecting a growth of 32 percent from $232 million in the previous year.

The rise in revenue was underpinned by a considerable growth in the number of units sold. The supermarket division’s profit after tax improved to $13,9 million from $6,7 million the previous year.

“Refurbishment works are in progress at five branches with completion expected before the commencement of the festive season,” Mr Moxon said.

On Tanganda, he said the division’s revenue went up by 22 percent to $15,7 million from $12,9 million achieved during the six months ended September 30, 2017. On the hospitality side, he said revenues grew by 18 percent to $10,3 million from $8,7 million achieved during the same period last year.

“At Meikles, revenues per average room rose by 35 percent underpinned by growth of both room occupancy and average room rate.

“The Victoria Falls Hotel revenue per average room grew to $198 from $188 achieved the previous,” he said.

Mr Moxon said Meikles Stores closed its mega market operations during the period under review due to working capital constraints as a result the division suffered a loss of $1,2 million compared to a loss of $1,8 million in the previous year.

“Funding arrangements for working capital requirements are being secured and new store models are being developed,” he said.