RNS No 6600d
MEIKLES AFRICA LIMITED
20th November 1997
MEIKLES AFRICA LIMITED
Interim Results for the six months ended 30 September 1997
Meikles Africa Limited ("Meikles Africa") the Zimbabwe-based
hotel and retail group, which floated on the Zimbabwe and
London Stock Exchanges last October, announces interim
results for the six months ended 30 September 1997.
* Group turnover of Z$1,227m (1996: Z$940m), up 31%
* Group operating profit of Z$100m (1996: Z$73m), up 37%
* Headline earnings per share of 90 cents (1996: 66
cents), up 36%
* Operating cashflow per share of 16 cents (1996: (2)
cents)
* Proposed dividend of 30 cents
* Capital expenditure of Z$62m (1996: Z$43m), up 44%
John Moxon, Chairman, commented:
"We have had a good start to the year. The second half has
so far continued in similar vein and I am delighted to
report that the rainy season has arrived on time. Overall,
the directors anticipate that the rate in increase during
the first half in earnings per share will be maintained for
the full year to March 1998."
Enquiries:
Meikles Africa Limited Tel: (+263 4) 730 611
John Moxon, Chairman
College Hill Tel: (+44 171) 457 2020
Mark Garraway
CHAIRMAN'S STATEMENT
Results
All three operating divisions of the Group have recorded
real growth, with turnover exceeding the same period in the
previous year by 31% and operating profits by 37%. TM
Supermarkets recorded turnover growth of 27%, which is
substantially higher than the inflation rate of the foods
element of the Consumer Price Index. Both the Retail and
Leisure Division and the Hotel Division recorded turnover
growth of 40%. Profit before tax of Z$175m shows an
increase of 224%. Headline earnings at Z$138m compares with
headline earnings of Z$59m for the six months to 30
September 1996, an increase of 134%. Headline earnings per
share were 90 cents, an increase of 36% over the previous
half year.
The expansion plans in the Supermarket Division are on
target, with three new branches already opened in the
current financial year and a further five units expected to
open in the next six months. The new units have met
customer expectations with regard to layout, decor and
merchandise and have recorded excellent sales from opening
dates. More units are in the planning stage for development
in the near future, with a view to achieving further growth
in market share.
The association with Pick 'n Pay continues to yield benefits
in terms of the cost of procuring merchandise and the
introduction of established house-brands. Three key sites
have been secured in Zambia and development should commence
in the first half of next year. Other regional
possibilities are under investigation.
There is a strong upward trend in hotel occupancies in
Harare, with the total room nights sold showing a 22%
increase over the same period last year. Meikles Hotel
continues to dominate the premium end of the market and
average occupancy increased from 71% in the six months to
September 1996 to 77% in the current half year. Profit
growth was 68% over the same period. The complete
refurbishment of 187 rooms and suites in the South Wing is
underway, approximately half of which are due for completion
this financial year. Preliminary designs for the new hotel
on the golf course site have commenced, and further
opportunities for expansion are under consideration. The
ISO9002 quality standard certification for Meikles Hotel is
expected to be awarded in December this year.
The retail and leisure division of the Group recorded sales
growth of 40% over the same period last year. The
department stores are maintaining market share in what is a
difficult environment for clothing and consumer durables,
whilst market share has been captured by the franchise
operations. Three new Clicks and Diskom stores, and one new
food unit have been opened in the period under review.
Another two Clicks/Diskom stores are scheduled to open
before the festive season and three potential sites are
being investigated. Two more food units will be opened in
November.
Outlook
The rainy season has started satisfactorily. Turnover in
October and November has shown strong growth in the
Supermarkets, whilst Department Stores have mounted credit
promotion which should produce good results through November
and December. Both Divisions are better prepared than in
the previous year to meet the demand for a wider range of
merchandise. Although the demand for accommodation from the
international business community traditionally slows through
November and December, Meikles Hotel is well placed with
bookings for tour groups over the period, and a special
Christmas package has been marketed internationally,
regionally and locally.
Overall, the Directors anticipate that the rate of increase
in earnings per share will be maintained for the full year
to March 1998.
J.R.T. Moxon
Executive Chairman
DIVIDEND
On 14 November 1997, the Board approved an interim dividend
No. 56 of 30 cents per share on 152,895,000 shares payable
to members registered in the books of the company at the
close of business on Monday 5 December 1997. The Transfer
Books and Register of Members will be closed from 6 to 14
December 1997. Dividend cheques will be mailed to
shareholders on or about 15 December 1997. The dividends
payable to non-resident shareholders will be paid in
accordance with Exchange Control Regulations. Shareholders'
withholding tax will be deducted where applicable.
By order of the Board
A P Lane-Mitchell
COMPANY SECRETARY
MEIKLES AFRICA LIMITED
Consoldidated Income Statement
For the six months ended 30 September 1997
Unaudited Unaudited Audited
(Restated) (Restated)
6 months to 6 months to Year ended
30 Sept 97 30 Sept 96 31 March 97
Z$000 Z$000 Z$000
Notes
Turnover 1,277,126 939,609 2,092,797
Cost of sales (934,390) (722,187) (1,583,812)
Gross profit 292,736 217,422 508,985
Employee costs (106,736 (72,278) (160,462)
Occupancy costs (26,265) (23,345) (29,191)
Other operating costs (104,241 (67,123) (194,079)
Other income 43,509 17,868 51,995
Operating profit 2 99,665 72,544 177,248
Interest income and 93,063 7,149 64,858
exchange gains
192,728 79,693 242,106
Interest expense 2 (17,258) (83,637) (105,028)
Profit/(loss) before
exceptional item and 175,470 (3,944) 137,078
taxation
Exceptional item
Profit on disposal of 25%
interest in TM - 58,321 58,321
Supermarkets
Profit before taxation 175,470 54,377 195,399
Taxation (30,255) - (520)
Profit after taxation 145,215 54,377 194,879
Minority interest (8,865) (4,936) (14,955)
Net profit attributable to 136,350 49,441 179,924
shareholders
Dividends (45,869) (58,321) (125,595)
Transferred to/(from) 90,481 (8,880) 54,329
retained earnings
Earnings per share-basic 3 89 59 157
(cents)
IIMR Headline earnings 3 90 66 168
per share(cents)
Consolidated Balance Sheet
At 30 September 1997
Unaudited Audited
(Restated)
Notes 30 Sept 97 31 March 97
Z$000 Z$000
ASSETS
Non-current assets
Property, plant and 475,415 436,079
equipment
Investments 13,069 12,268
Goodwill 4 62,170 63,806
Long term debtors 53,062 50,297
603,716 562,450
Current assets
Stocks 331,771 241,885
Debtors and prepayments 171,631 140,883
Cash and cash equivalents 722,504 786,950
1,225,906 1,169,718
Total assets 1,829,622 1,732,168
EQUITY AND LIABILITIES
Capital and reserves
Equity capital 15,289 15,289
Non-distributable reserves 1,048,368 1,048,368
Retained earnings 195,461 104,980
1,259,118 1,168,637
Minority interest 19,535 12,805
Non-current liabilities
Interest bearing borrowings 105,290 126,314
Current liabilities
Creditors 353,533 329,273
Interest bearing borrowings 10,206 9,934
Proposed dividend 45,869 67,274
Other financial liabilities 36,071 17,931
445,679 424,412
Total equity and liabilities 1,829,622 1,732,168
Consolidated Cashflow Statement
For the six months ended 30 September 1997
Unaudited Unaudited Audited
(Restated)
30 Sept 97 30 Sept 97 31 March 97
Z$000 Z$000 Z$000
Cashflows from operating
activities
Profit before taxation 175,470 54,377 195,399
Adjustments for:
- Profit of TMC
Textiles division retained - - 15,490
by the Group
- Amortisation of goodwill 1,636 - 1,636
- Depreciation 22,156 11,827 30,700
- Net interest receivable (93,063) (7,149) (64,858)
and exchange gains
- Net interest payable 17,258 83,637 105,028
- Profit on disposal of
25% interest in TM - (58,321) (58,321)
Supermarkets
- Profit on disposal of
plant, property and - - (281)
equipment
- Profit on disposal of - - (524)
investments
- Transfer to reserves
on acquisition of - - (5,060)
Northchart
Operating cash flow before
working capital changes 123,457 84,371 219,209
Increase in stocks (89,886) (30,995) (68,126)
Increase in debtors (33,513) (26,551) (136,954)
Increase/(decrease)in 24,349 (28,922) 17,724
creditors
Operating cash flow 24,407 (2,097) 31,853
Interest paid (17,258) (83,637) (93,397)
Income tax paid (899) - (1,742)
Net cash generated from
(used in) operating 6,250 (85,734) (63,286)
activities
Consolidated Cash Flow continued
Unaudited Unaudited Audited
(Restated)
30 Sept 97 30 Sept 97 31 March 97
Z$000 Z$000 Z$000
Cashflows from investing
activities
Purchase of property, (61,899) (43,255) (113,117)
plant and equipment
Proceeds from disposal of
property, plant and 343 1,223 7,095
equipment
Proceeds from the disposal
of 25% interest in TM - 67,387 67,387
Supermarkets
Purchase of investments (801) - -
Proceeds from disposal of - - 9,424
investments
Interest received 33,846 7,149 31,479
Net cash(used in)/
generated from (28,511) 32,504 2,268
investing activities
Cash flows from financing
activities
Proceeds from issue of - - 710,428
equity capital
Proceeds from interest - 62,105 80,000
bearing borrowings
Proceeds from Shareholders - 12,910 -
loans
Repayments of interest (20,752) (2,885) (25,859)
bearing borrowings
Dividends paid - Ordinary (67,274) (88,321) (91,450)
shareholders
- Minorities (13,376) - -
Net cash (used
in)/generated from (101,402) (16,191) 673,119
financing activities
Net (decrease)/increase in
cash and cash equivalents (123,663) (69,421) 612,101)
Acquired with subsidiary - - 50,094
Net exchange gains 59,217 - 31,151
Cash and cash equivalents 786,950 93,620 93,604
at 31 March 1997
Cash and cash equivalents
at 30 September 1997 722,504 24,199 786,950
NOTES
1. Accounting Policies
The accounting policies are the same as those issued in
the 31 March 1997 Financial Statements, except in
relation to investments and land and buildings which
have been changed with effect from 1 April 1997.
Comparative figures have been restated to reflect these
changes.
In prior periods, quoted investments were revalued to
market value at the date of the balance sheet, the
surplus being included in non-distributable reserves.
The Group's quoted investments are now only long-term
investments and therefore, in conformity with
International Accounting Standards, they are carried at
cost with the market value shown by way of note. The
effect of this change is a reduction in investments and
non-distributable reserves of Z$65,137,000 at 1 April
1997.
Freehold land and buildings were previously included in
the Financial Statements at valuation and buildings
were not depreciated. The Group has now adopted the
International Accounting Standard and included them at
historic cost, with the market value shown by way of
note. The effect of this change is a reduction in
freehold land and buildings and non-distributable
reserves of Z$328,945,000 at 1 April 1997. Freehold
buildings are now being depreciated on a straight line
basis over their estimated useful life of 60 years.
Unaudited Unaudited Audited
Year to
6 months to 6 months to 31 March 97
30 Sept 97 30 Sept 96
Z$000 Z$000 Z$000
2. Interest and net
exchange gains
Receivable:
Related parties 476 844 8,902
Third parties 33,370 6,305 24,805
Net exchangeable 59,217 - 31,151
gains
93,063 7,149 64,858
Payable:
Meikles Consolidated
Holdings(Private)
Limited (prior to 30 - 56,600) (56,600)
September 1996)
Related parties (928) (9,872) (11,972)
Long term loans (15,952) (16,680) (35,972)
Overdrafts and short (378) (485) (484)
term borrowings
(17,258) (83,637) (105,028)
Exchange gains and losses are made on the translation
of cash balances and liabilities held in foreign
currency.
3. Earnings per share
Basic earnings per share:
Basic earnings per share have been calculated by
dividing the net profit for the year attributable to
shareholders by the weighted average number of shares
in issue of 152,895,305 (September 1996 84,359,281,
March 1997 114,359,281).
IIMR Headline earnings per share:
Unaudited Unaudited Audited
6 months to 6 months to Year to
30 Sept 97 30 Sept 96 31 March 97
Z$000 Z$000 Z$000
Net profit for the
period attributable 136,350 49,441 179,924
to shareholders
Add/(deduct) non-
recurring items:
Interest on loans
and debentures - 68,211 69,147
converted to equity
Profit on disposal
of TM Supermarkets - (58,321) (58,321)
Amortisation of 1,636 - 1,636
goodwill
137,986 59,331 192,386
Weighted average
number of shares in 152,895,305 89,617,861 114,359,281
issue
4. Investments
Unaudited Audited
(Restated)
30 Sept 96 31 March 97
Z$000 Z$000
Market value of quoted
investments at the balance 138,930 77,400
sheet date
5. Segmental Information
Unaudited Unaudited Audited
(Restated)
30 Sept 97 30 Sept 97 31 March
Z$000 Z$000 Z$000
By industry segment:
Turnover
Hotel 92,206 65,631 139,517
Supermarkets 900,606 706,553 1,528,109
Retail 234,314 167,425 425,171
1,227,126 939,609 2,092,797
Profit before interest and
taxation
Hotel 37,518 23,429 51,839
Supermarkets 48,695 39,371 97,359
Retail 16,166 11,520 43,059
Corporate and other (2,714) (1,776) (15,008)
99,665 72,544 177,248
Total assets
Hotel 310,809 260,574 290,493
Supermarkets 295,705 193,486 294,288
Retail 401,607 234,812 340,279
Corporate and other 821,501 (48,651) 807,108
1,829,622 640,221 1,732,168
END
IR OCCCBODDDPDD
Meikles (LSE:MIK)
Historical Stock Chart
From Jun 2024 to Jul 2024
Meikles (LSE:MIK)
Historical Stock Chart
From Jul 2023 to Jul 2024
