HomeNewsMeikles in $3,4 million loss

Meikles in $3,4 million loss

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Zimbabwe Stock Exchange-listed conglomerate Meikles Limited has posted an after-tax loss of $3,4 million for the year ended March 31 2012 compared to a profit of $6,1 million recorded in the previous year.

Revenue grew to $354 million from
$330 000 million buoyed by its retail division as the group seeks to consolidate its market share anchored by the Pickn Pay brand.

The South Africa-based retail chained injected $13 million into the group which resulted in an increase in the number of TM Supermarket outlets. Finance costs were 44,3 million and $4,2 million in the first half and second half respectively.

Regrettably the groups agricultural division suffered from a severe frost last winter and an unusual adverse weather pattern in the summer.

Losses that arose and were accounted for in the second half of the year as a direct result of the weather amounted to $2,9 million in direct revenue and $2,3 million loss of profit, said chairman John Moxon in a statement.

The group also announced its plans to raise $150 million to fund its units.

The group is negotiating with various financiers regarding the injection of significant funding. In addiction, discussions with the Reserve Bank of Zimbabwe for the freeing of funds held on deposit are continuing.

The implementation of this financial policy according to Moxon would result in the reduction of finance costs as well as securing a sound balance sheet structure for the group.

Subject to regulatory approval, the group has a potential project that may commence shortly. The sum involved amounts to $150 million.

This amount will not be raised at holding company level, but will be injected directly into the project itself, said Moxon.

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