MEIKLES LIMITED
INTERIM MANAGEMENT REPORT RELEASED ON 18
FEBRUARY 2013
This Interim Management Statement is issued by Meikles Limited
in accordance with the UK Listing Authority's
Disclosure and Transparency Rules. Unless stated otherwise, key
trends and figures highlighted below refer
to the nine months ended 31 December
2012 and the corresponding period in the previous year.
REVIEW OF OPERATIONS
The Group has continued to perform well from the time the
interim results were released. This is despite the challenges of
the operating environment still characterized by low liquidity and
to some extent low business confidence. Group revenues for the nine
months ended 31 December 2012
increased by 16% compared to the prior period driven by increased
volumes and margins. Group costs only show an increase of 3% over
the same period and resultantly, operating profit is showing a
significant increase compared to that achieved in the prior
year.
As reported in the interim Chairman's statement dated
21 November 2012, the Group is
pursuing opportunities in the mining sector and has made the
necessary applications to the regulatory authorities. Stakeholders
will be updated once there are new developments on this
initiative.
TM Supermarkets has upgraded the Westgate branch and rebranded
it into a Pick n Pay store, bringing the number of Pick n Pay
branded stores to two in the country. In addition, one of the
Chinhoyi branches was also refurbished and this has continued to
operate as a TM branded store. New refrigeration and air condition
units were installed at the flagship Borrowdale branch, while the
refurbishment works at the Hwange branch are nearing completion. TM
has seen increased volumes and margins from the refurbished
branches. The branch refurbishment programme is an on-going
exercise as we seek to improve our offering at all branches that we
operate from.
The refurbishment programme at Meikles Hotel is nearing
completion and we expect the new rooms to be available to our
guests before the end of our financial year. Procurement of
materials to refurbishment the Victoria Falls Hotel has started and
is in progress. It is anticipated that phase one of the renovations
targeting approximately 44 rooms and public areas at the Victoria
Falls Hotel will be completed at the end of July 2013 and in time for the UNWTO conference.
Phase two to complete the remaining rooms will commence after the
UNWTO conference.
The departmental stores' performance which has not measured up
to expectations, reflect the challenges in the operating
environment. The revenues have not grown while credit has been
deliberately curtailed pending improvement in the economy.
Plantation development on the Tanganda Tea Estates is being
advanced. To date 187 hectares of avocadoes, 457 hectares of
macadamias and 125 hectares of coffee have been planted. The global
tea prices have gone up in the past months and this augurs well for
tea revenues. Despite a late start to the rainy season, good rains
have been received through January
2013 to date and we therefore expect tea production to
increase in the coming months.
We remain optimistic and positive about the outlook in most of
our businesses. Our performance in the financial year ending
31 March 2013 is expected to show
much improvement from the outturn of the previous financial
year.
END
Issued on 18 February 2013
Notes:
1. The financial information on which this statement is based
has not been reviewed and reported on by the Group's auditors.
2. Please note that matters highlighted above may contain
forward looking statements which are subject to various risks and
uncertainties and other factors, including, but not limited to:
- business conditions.
-political environment
-market related risks.
• A number of these factors are beyond the Group's control.
• These factors may cause the group's actual future results,
performance or achievements to differ from those expressed or
implied.
• Any forward looking statements made are based on the knowledge
of the Group as at 18 February
2013.