MIK Meikles Limited

MEIKLES LIMITED

INTERIM MANAGEMENT REPORT

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 three
months ended 30 June 2013 and the corresponding period in the previous
financial year.

Operating environment

Zimbabwe approved a new constitution in March 2013 followed by harmonized
elections on 31 July 2013. The period leading up to and after these legislative
processes was largely peaceful and did not disrupt our businesses as was the
case in previous harmonized elections. However, business across the board
slowed down, while these processes were underway. The markets became more
illiquid; turnover on the stock market reduced, bank deposits decreased and it
was reported by Confederation of Zimbabwe Industries that capacity utilisation
dropped to 45% from 55% in 2012. The period post the elections is yet to
unravel as the country awaits the inauguration of the President and the
formation of a new government and cabinet.

Operations update

Tanganda Tea Company

Tanganda had a good first quarter aided by friendly weather patterns which
continued from the end of the last financial year. As a result, tea production
was 33% higher than same period in 2012. The company also implemented
preventative measures to safeguard the crops from a severe winter and these
measures yielded the desired results.

The global average bulk tea prices were 15% up when compared with the
corresponding quarter in 2012. The beverage tea sales in the local market
slowed down in the first quarter whilst the regional sales in Namibia and
Zambia increased. New markets for packeted tea in South Africa, Mozambique and
Botswana are being developed. A new state of the art tea packing plant has been
ordered to cater for the expanded regional markets and expected increase in
local packeted tea volumes.

The young plantations of coffee, macadamia and avocadoes planted in previous
periods are doing well. Land preparation continued in the first quarter and
further plantings are expected to commence before the end of the second
quarter. Purified spring water production has vastly improved and volumes for
the quarter were 59% higher than those of the comparative period.

TM Supermarkets

Trading in TM Supermarkets was within expectations for the quarter ended 30
June 2013. Turnover grew by 5% compared to the corresponding period in 2012.
Year on year inflation was at 1.87% as at 30 June 2013. The gross margins are
similar to those achieved in prior periods.

The branch refurbishment is continuing with work currently underway at the
Masvingo, Gweru and Harare CBD branches. The Supermarkets division added two
new trading operations in July 2013 bringing its stores portfolio to 51. Apart
from the refurbishment of existing branches, at least two new branches will be
added to the portfolio by the end of the current financial year.

Thomas Meikle Stores

In TM Stores, the trading remains subdued as reported in previous statements.
In spite of the improvement in our stocking and merchandise, the turnover
levels are still below sustainable levels due to the challenges in the economic
environment characterized by low disposable incomes and absence of credit
funding. The company continues to make progress on cost management and achieved
a 10% reduction in operating costs during the quarter and, more efforts to
reduce costs and stream line the business are currently in progress.

Meikles Hospitality

The Hospitality operations registered a 3% decrease in turnover compared to
prior period. The legislative processes mentioned earlier affected occupancy
levels as the international business travelers and tourists adopted a "wait and
see" attitude given experiences of past elections. The UNWTO General Assembly
will be taking place from 24 to 29 August 2013 and the country will take this
opportunity to showcase its tourist attractions in an environment of peace and
tranquility. We therefore expect the occupancy levels to improve in future
periods following this conference which is being co-hosted with Zambia.

The refurbishment of the North Wing at the Meikles Hotel will be completed by
31 August 2013. The first phase of the refurbishment at the Victoria Falls
Hotel is also nearing completion. At both hotels, the outcome of these
refurbishments has surpassed our expectations and created a truly magnificent
product which we hope our guests will enjoy.

Funds held on deposit with the Reserve Bank of Zimbabwe (RBZ)

Progress has been made in getting better terms on the funds held on deposit
with the RBZ. The discussions are nearing conclusion and will result in a
higher interest being accrued on the deposit, with a retrospective implication.

Resources

The shareholder agreements pertaining to mining in partnership with Centar were
concluded in June 2013 resulting in the formation of a new company, Meikles
Centar Mining (Private) Limited. The company has since been licensed by the
Zimbabwe Investment Authority and is awaiting other regulatory approvals
following which various mining projects will be pursued.

Funding

The Group has secured long term funding for all its projects being the
refurbishment of the Hotels, the plantation development in Tanganda and the
refurbishment and outfitting of new stores in TM Supermarkets. This funding is
in line with the Group's financing policies, previously disclosed to
shareholders.

Outlook

The Group is working on various initiatives to safeguard and improve its
performance for the betterment of all stakeholders. We expect the new
government to play its part by putting in place policies that promote a
conducive economic environment to attract both local and foreign investors.

END

Issued on 15 August 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 15 August 2013.