16 January 2018
   
Mnangagwa off to Zambia Friday
Special corruption courts soon: CJ Malaba
Millions in roads repair funds looted
ED denies stealing ideas from MDC-T
Chair Moyo says 3 VPs MDC-T’s main dilemma
Mujuru’s house nearly seized for Mphoko
Coup reformed CIO, Army, ZRP: Mangoma
Rivals rage as ED govt ‘bribes’ chiefs
MORE NEWS
Minister sells post-Bob Zimbabwe in Spain
Zim investment indaba set for South Africa
MORE BUSINESS
Racism: Malema party storms H&M stores
Donel Mangena rocks The Voice UK
MORE SHOWBIZ
Bangladesh easily beat Zimbabwe
FC Platinun star dumps Zimbabwe champions
MORE SPORTS
ZHUWAO BRIEF: ED-iots and election delay
A candid conversation with Zhuwao: Mawere
MORE OPINION
 
ED govt legitimacy & the church’s role
2018 election: Zim & the wealth card
MORE COLUMNISTS
 
 
Meikles eyes return to profit for retail unit

06/10/2014 00:00:00
by The Source
 
 
RELATED STORIES
Meikles narrows half year loss to $2,8m
‘Unattractive’ TBs stall Meikles restructuring
Meikles in talks with foreign investor
Meikles to retire short-term loans
Meikles eyes 51pc in Matabeleland mine

DIVERSIFIED group Meikles Limited sees its retail unit returning to profitability in the full year to March next year, driven by the injection of $4 million in working capital, the company said on Monday.

In a profit warning, the group said its retail division consisting of Meikles Stores, Barbours and Meikles Mega Market had its working capital position affected by arbitrary price controls effected nearly a decade ago as well delays in receiving funds held by the Reserve Bank of Zimbabwe.

In July Meikles chairman John Moxon said the group expects to recover $89 million, owed by the Reserve Bank of Zimbabwe since 1998, at the end of July, after taking the apex bank to court.

“The group will now have access to its funds held on deposit at the Reserve Bank. As a result, approximately $4 million will be injected into the retail business, which will have a material impact on the second half of the current financial year,” the group said.

“We believe that the division will return to profit and a positive cash flow in the second half of the financial year, while growing its market share.”

Revenue for the year dropped to $384 million from $391 million weighed down by the group’s departmental stores and poor turnover in the retail and agricultural operations of the group.

Operating costs were 1.7 percent ahead of the prior year while finance costs increased because of borrowings to fund expansion and refurbishments in the supermarkets, hotels and substantial plantation development.



Advertisement


 
Email this to a friend Printable Version Discuss This Story
Share this article:

Digg it

Del.icio.us

Reddit

Newsvine

Nowpublic

Stumbleupon

Face Book

Myspace

Fark

 
 
 
comments powered by Disqus
 
RSS NewsTicker