Meikles posts loss

via Meikles posts loss – NewsDay Zimbabwe 1 December 2014 by Victoria Mtomba

MEIKLES Limited has this year posted a loss of $2,8 million for the six months ended September 30 2014 compared to a profit of $37,5 million registered during the same period last year.

The group’s executive chairman John Moxon said Meikles recorded an Earnings Before Interest Depreciation Tax Amortisation loss of $1,5 million compared to a profit of $1,5 million.

“Depreciation went up by 53% to $4,4 million, while occupancy costs and employee costs have increased by 11% to $10 million and 7% to $23,2 million respectively. These increases are due to substantial group expansion and renovation projects that have been undertaken in all divisions. The group has not yet had an opportunity to benefit fully from these projects,” Moxon said.

The group’s revenues increased to $196 million from $190 million the prior year due to the exceeded that of the quarter to September compared to the quarter to June by 6% and TM Supermarkets being the major driver.

“TM Supermarkets grew by 8%, hotels by 36% and Mega Mart by 21%. Stores declined by 38%, but this decline was largely expected due to rationalisation undertaken by the division. Shareholders will be pleased to learn that October turnover in TM Supermarkets relative to the previous financial year, grew by over 11% and that November is expected to exceed this rate of growth in comparison with November of the previous year,” he said.

Moxon said approvals have now been received from the Reserve Bank of Zimbabwe and the Ministry of Youth Indigenisation and Economic Empowerment for the participation of our foreign partners in gold mining in Matebeleland.

Moxon said shareholders would be advised of developments as they progressed, adding that the Guard Services continued to grow and Tanganda was beginning to benefit following the commissioning of a new packing machinery.

He said the shareholders were advised of acceptance by the international market of the first coffee crop following plantation development in recent years which has been very encouraging.