Meikles loss widens to $10.8 million

Diversified listed concern Meikles Limited yesterday said its net loss accelerated to $10.8 million in the six months to September from $2.8 million during the same period last year.

Operating costs were up from $202 million to $225 million. The group recorded a $4 million loss on discounting Treasury Bills as well as a $3.6 million fair value loss on disposal of available-for-sale financial assets.

During the six months, investment income fell 76 percent to $1.7 million.

Total group revenue increased by 15 percent to $ 225 million. Turnover from the group’s PicknPay and TM supermarkets increased by 17 percent to $196.7 million.

Tanganda, the tea business was adversely affected by a decrease in international tea prices. Average prices fell to $1.28/kg from $1.32/kg in the comparative period. Revenue from the agricultural unit was flat at $11.1 million.

The group said its hospitality unit recorded a seven percent decline in revenue to $8.2 million as a result of the 15 percent value-added tax (VAT) levied on foreign tourists for accommodation and tourism-related services.

Meikles operates two five-star hotels in Zimbabwe, the Meikles in Harare and its 50 percent-owned Victoria Falls Hotel. African Sun owns the other 50 percent.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by $6.4m relative to the previous period.-The Source

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