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