Meikles limited - trading update for nine months shows improved turnover

Published: 10 June 2013

Meikles released an encouraging trading update for the nine months to 31 December 2012 highlighting the recovery in group operations. Turnover for the nine months grew by 16% y-o-y driven by increased volumes and margins.

Costs were well contained increasing 3% y-o-y resulting in operating profit increasing significantly. The group is pursuing opportunities in the mining sector and has made the necessary applications to the regulatory authorities. We highlight the divisional performance below:

TM Supermarkets
Westgate brand was rebranded to Pick n Pay and bring the number of Pick n Pay stores in the country to two;
New refrigeration and air condition units were installed at the flagship Borrowdale branch;
Refurbishment works at Hwange branch are nearing completion;
Volume and margins have increased from the refurbished branches.

Hotels
Refurbishment programme at Meikles Hotel is nearing completion;
Phase one of the renovations at the Victoria Falls Hotel targeting approximately 44 rooms and public areas is expected to be completed by the end of July 2013 in time for the UNWTO conference. Phase two to complete the remaining rooms will commence after the UNWTO conference.

Departmental Stores
Performance which has not measured up to expectations;
Revenues have not grown while credit has been deliberately curtailed pending improvement in the economy.

Tanganda Tea Company
Approximately 1857ha of avocadoes, 457ha of macadamias and 125ha of coffee have been planted. The plantation development is ongoing as the diversification continue to gather momentum;
International tea prices have firmed and tea production is expected to increase in the coming months.

FY 2013 performance is expected to show a marked improvement from the outturn from the previous financial year.
- Byo24News

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