Meikles reaches agreement with government over central bank debt

Moxon said following the closure of the debt issue, the group will publish its delayed financial results in a fortnight.

“We had to delay publishing our previous results due to the outstanding government debt issue. Now that it has been resolved, we will be in a position to advance the restructuring and repositioning of the group. We will also use some of the funds to ensure that the Stores segment acquires appropriate inventory,” Moxon said.

He also said net borrowings in the expected results will show a significant reduction following the agreement.

Giving an update on the financial performance of the group, Moxon said earnings before interest taxation depreciation and amortization (EBITDA) for the year doubled while profit after tax were better than the previous year.

Moxon said TM/Pick n Pay performance has been extremely encouraging, especially on the bottom line.

Tanganda recorded an impressive performance in the year driven by good rains and an increase in prices and sales.

“The prices of Tanganda products managed to grow during the year, especially for macadamia, tea and coffee. We have had an increase in performance for Tanganda because new crops have now reached maturity and now contributing,” said Moxon

The hospitality segment, Victoria Falls Hotel also had a good year after completing the first phase of refurbishment. Phase two is set to commence soon.

Moxon said Meikles Hotel’s performance has been encouraging but would get better once there is an improvement in the economy. 

“At present, the group charges three star prices for a five-star facility and that’s entirely due to the prevailing economic conditions,” he added.

Moxon said Meikles Mega Market and the department stores, had a good year but the units had been greatly affected by low stocking levels which will, however, improve given the expected proceeds from the government.

Meikles is currently trading under caution relating to an offer made by United Arab Emirates investor Albwardy Investments Limited to buy out the group’s shareholders.

Moxon said discussions around the offer were ongoing and is optimistic that the final position will set the company on a firm path since the shareholder does not want “to dismantle the group but to inject funding.”- The Source

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