Meikles Limited releases its abridged unaudited financial results for the six months ended 30 September 2015. Below is the Group overview extract from the Chairman’s Statement:

CHAIRMAN’S STATEMENT

Group Overview

Group turnover for the six month period to 30 September increased by 15% relative to the previous period. The contribution to turnover by the different segments of the Group is set out in Note 6.

Operating income increased by 18% relative to the previous period.

Whilst operating expenses excluding depreciation have increased by 3%, they have reduced to 20% of turnover from 22% recorded in the comparative period. The increase in operating expenses was caused by a growth in rents payable to third parties as a result of growth in turnover and by a growth in utility connected expenditures. Other costs, including employment costs, were static. There has been a combination of employment cost reductions in segments of the Group and the creation of further employment opportunities from growth projects in the Group.

EBITDA increased by $6.4m relative to the previous period. The contribution to EBITDA by the different segments of the group are set out in Note 6.

Interest payable decreased by 14% mainly due to the reduced borrowings. Interest received decreased by 41%, as a result of reduced interest receivable on outstanding balances due from the Reserve Bank of Zimbabwe. Net interest payable increased by 12% to $3.7 million.

Fair value gains on biological assets reduced from $3.6 million to $0.66 million. Shareholders are reminded that these sums are non-cash flow in nature.

The movements relative to the Balance with the Reserve Bank of Zimbabwe and Treasury Bills are detailed in Notes 4 and 5.

Group net borrowings are detailed in Note 7. Shareholders will observe that net borrowings have decreased by approximately $22 million over the six month period.

Negotiations on further sums considered due from the Reserve Bank of Zimbabwe as disclosed in the 31 March 2015 annual report are in progress. It is expected that this matter will be finalised very shortly and Shareholders will be advised further at the appropriate time. Any resultant adjustment to the financial results will be disclosed to Shareholders and will be included in the results of the second half of the current financial year.

With the exception of trade and other receivables which reflect a positive reduction for the period, other balance sheet items remained substantially unchanged in total. Segment assets and liabilities are disclosed in Note 6.

  • MEIK.zw | Abridged unaudited results for the six months ended 30 September 2015