Meikles Ld Shareholders' Update
March 08 2016 - 3:05AM
UK Regulatory
TIDMMIK
MEIKLES LIMITED
SHAREHOLDERS' UPDATE
Shareholders are advised that recent developments in negotiations with
Government over sums due to the Group necessitate an update for the benefit of
Shareholders and Stakeholders.
The Company also considers that it is appropriate to include a trading update
for the further benefit of Shareholders and Stakeholders. This update is based
on the trading period of nine months to the end of December 2015 and the
outcome of recently concluded negotiations with the Government of Zimbabwe.
Shareholders are advised that a basis on which funds are to be recovered has
been agreed. The Government has undertaken to repay the outstanding funds in
terms of the Reserve Bank of Zimbabwe Debt Assumption Act of July 2015.
Negotiators in both Government and the Company are to be commended on the
conclusion of the agreement. The local business community should be encouraged
by such a progressive interaction between Government and a participant in the
private sector. The International community and investors may be well advised
to take note of this positive development.
The Group will now be able to grow to its potential and develop its strategies,
without the specific uncertainties caused in the period when negotiations were
still ongoing. All entities of the Group have growth plans, which will be to
the benefit of all Stakeholders. All Stakeholders will learn of these plans as
they are exposed in the public domain.
In thanking Government, which we do most sincerely, it must be noted that the
reward to all will be to witness the Group's progress in the next twelve to
eighteen months, a major benefit to all Stakeholders and to the community at
large.
Trading Update
Group turnover for the nine month period to 31 December 2015 of $347 million
compares favourably with that of the previous period of $310 million, an
increase of 12%.
Overall margins, together with operating income margins at 21.8% were
marginally better than those of the previous period of 21.2%. The sales mix in
the Group as a whole does distort this comparison, as margins do vary over
Group activities.
Expenses expressed as a percentage of turnover decreased from 21% to 19%.
EBITDA increased by $9.5 million relative to the previous period.
The financial implications of the agreement with Government will be included in
our audited results for the full year to 31 March 2016.
BY ORDER OF THE BOARD
8 March 2016
END
(END) Dow Jones Newswires
March 08, 2016 04:05 ET (09:05 GMT)
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