Meikles pretax profit boosted by non-trading income

Published: 03 December 2013

Meikles booked an H1 pretax profit of $37.2m, from a loss of $0.2m. The profit was boosted by non-trading income of $42.7m, from $3.1m. Revenue for the period was $190.3m, from $189.5m.

Due to liquidity constraints, capital expenditure and working capital requirements, Meikles was unable to pay an interim dividend. However, on repayment of the RBZ deposit there should be sufficient capacity to resume the payment of dividends.

Meantime, the company said the second half would be dominated by growth in non-trading income, primarily investment income.

"There are anticipated gains in investments that will be accounted for in the year end financials. These gains may include the South African interests, where the Group has substantial performance expectations, and a first contribution from the Group's mining activities," the company said.

In the short term, Meikles said it was expected that the retail divisions would continue to encounter demanding environmental challenges particularly tight market liquidity conditions and low disposable incomes.

"However, TM Supermarkets will look to benefit from the renovation of its units and the expansion of its branch network, which is gaining momentum," the company said.

The new stores concept was expected to provide a good addition to the Group's overall retail activities.

Tanganda has had an excellent start to the agricultural growing season and the weather forecast for the remainder of the season is positive.

The newly-renovated Meikles Hotel, together with the renovation of the Victoria Falls Hotel will provide a better performance platform for the hospitality division.

- stockmarketwire

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