Meikles HY profit after tax up 467%
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. SUGAR giant, Tongaat Hullets, is seeking bids from companies or individuals with capacity to develop 4 000 hectares of virgin land to boost sugarcane production in the lowveld.
The new ambitious project dubbed ‘Kilimanjaro’, is slated for January 2019 and by March 2020 all the tendered work would have been completed with the production of sugarcane expected by September 2020.
In a statement the company said it plans to increase production tenfold on the back of improved water supply after the commissioning of the 1,8 billion cubic metres Tugwi-Mukosi Dam.
“The company has determined that fair conditions now exist on the back of secure bulk water to accelerate the implementation of the Kilimanjaro project as advertised in 2014,” said Tongaat.
“Interested and qualifying practice parties are invited to tender for category works with THE Property Rights Bill is being finalised and would be tabled in Parliament before the end of the year as Government moves to guarantee safety of all investments in the country, Industry and Commerce Minister Mangaliso Ndlovu has said.
He told Business Chronicle in an interview in Bulawayo that the Zimbabwe Investment and Development Agency (ZIDA) Bill was set to be tabled before the Cabinet Committee this week. The Bill is meant to provide assurance to investors about the country’s commitment to property rights, said the minister.
“We have been consistent about addressing the investment climate and about assuring property rights in the new dispensation. A bill is coming and I will actually be bringing it to the Cabinet committee. Zimbabwe Investment and Development Agency Bill should be tabled before Parliament before the year end,” he said.
Minister Ndlovu said the Bill guarantees property rights and will also have a dispute key milestone activities being bush clearing and construction of irrigation infrastructure.”
It said the tender details will be availed to interested parties upon payment of tender fees.
“Contractors will be required to choose the categories and blocks they wish to work on in line with their capabilities.
‘‘Contractors are expected to supply and install pressurised irrigation system, 39 centre pivots on various blocks covering 780 hectares. They should also design a semi-portable sprinkler system covering 229 hectares,” said the firm.
Tongaat Hullets, which runs Triangle and Hippo Valley Estates, employs at least 17 000 people at peak and processes in excess of 4,8 million tonnes of sugarcane per year from both farmers (17 000) and own cane (29 000).
The firm produces 640 000 tonnes of sugar per year.
It also has installed factory capacity to produce up to 140 000t of refined white sugar and stock feed. The company is also into cattle ranching and has 6 000 cattle. — @ walterbmswazie2 resolution mechanism which is critical for investments. Justice, Legal and Parliamentary Affairs Minister Ziyambi Ziyambi recently said Government will prioritise property rights and respect for rule of law.
He said Government will support implementation of the Transitional Stabilisation Programme through crafting of sound policies. Minister Ziyambi also said his ministry was working on laws that create a conducive business environment while aligning some laws with the Constitution. — @nqotshili