Meikles FY2016 turnover up 10%

Meikles FY2016 turnover up 10%
Published: 12 July 2016
Hotel and retail group Meikles Africa Limited's turnover for the full year to March 30, 2016 rose by 10 percent to $454 million relative to prior year.

The group says it has delayed the release of its latest full year results due to delays in the release of documentation in support of an earlier agreement with Government over an unpaid debt.

"Documentation in support of the agreement has still not been completed by Government. The company has stressed the urgency of this matter with Government. This documentation is crucial to the release of the Company's audited financials for the current year," said Meikles in a notice to shareholders today.

The hotel and retail group, which claimed it was owed $90 million in debt and interest by the Reserve Bank of Zimbabwe (RBZ), announced in March that the Government had undertaken to repay outstanding funds in terms of the Reserve Bank of Zimbabwe debt assumption act of July 2015. Its results should now be published at the end of this month.

"The company has obtained from the Zimbabwe Stock Exchange approval to delay the release of its audited financials until the end of July 2016."

But in a trading update, Meikles noted that its Hospitality division aside, all its other segments contributed to the growth in turnover. Operating income increased by 14 percent (in the prior financial year, Meikles posted an operating loss of $10,4 million).

The company said an expenditure growth of 1 percent during the period under review was largely negated by the rise in turnover.

"Expenditure driven primarily by a growth in occupancy costs, resulting from expansion, increased by only 1 percent relative to the previous year. This increase represents an effective decline relative to the growth in turnover."

Earnings Before Interest Tax Depreciation and Amortisation (EBITDA) increased by $11,5 million relative to the previous year.
- BH24
Tags: Meikles,


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