Meikles Limited narrows half year loss to $2,8m

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DIVERSIFIED group, Meikles Limited has narrowed its loss to $2,8 million for the half-year ended September 30 from $37,5 million during the same period last year.
The group’s revenue stood at $196 million from $190 million in the previous year, while revenue for the quarter to September had exceeded that of the previous quarter by six percent driven by growth in its subsidiaries.
“Year on year turnover for the six months, although not strictly comparable with the previous period, did increase by 3.1 percent, with positive contributions to growth from all divisions other than stores,” the group said in a statement accompanying its results on Friday.
However, the group said its earnings before interest, taxes, depreciation and amortisation stood at negative $1,5 million.
TM Supermarkets grew by eight percent, hotels 36 percent and Mega Mart 21 percent.
Stores declined by 38 percent due to the rationalisation undertaken by the division while Tanganda reduced by 22 percent.
Depreciation went up by 53 percent to $4,4 million, while occupancy and employee costs increased by 11 percent to $10 million and seven percent to $23,2 million respectively.
“These increases are due to the substantial group expansion and renovation projects that have been undertaken in all divisions,” said the company.
The group’s borrowings reduced by $6,8 million, while cash balances simultaneously declined.
“The reduction in cash balances was mostly due to TM Supermarkets expenditure relating to renovations and expansion,” read the statement.
The company said turnover for the TM supermarkets grew by 11 percent compared to the previous period while that of November was expected to exceed the rate.
Hotels grew by four percent in October compared to the same period last year while Mega Mart continued to registered a month-on-month growth.
The group’s agriculture concern, Tanganda, was beginning to benefit following recent commissioning of a new packaging machinery.
Turning to its mining interest, the company said it had received approvals from the central bank and youth and indigenisation ministry for participation of its foreign partners in gold mining in Matabeleland.
“It is expected that the agreements will be finalised in the foreseeable future with our partners,” it said.Advertisement