THE Zimbabwe Stock Exchange-listed diversified concern — Meikles Limited — says negotiations aimed at recovering funds owed by the Reserve Bank are nearing conclusion as the group seeks to improve profitability.
In June this year, the company said operations as well as the capacity of the company to pay off short-term borrowings were being affected by the payment of funds that are owed by the central bank.
The central bank owes Meikles $76,5 million dating back to 1998.
The debt was accrued from transactions related to the group’s dual listing on the ZSE and the London Stock Exchange.
In an interim management statement released last week, Meikles said the group’s cash flow was expected to improve after recovering the funds.
“Progress has been made in getting better terms on the funds held on deposit with the Reserve Bank of Zimbabwe. The discussions are nearing conclusion and will result in a higher interest being accrued on the deposit, with a retrospective implication,” the company said in the statement.
The company’s finance director Onias Makamba said the company was in discussions and could not disclose more information.
“We will realise more income after the discussions on the funds on deposit,” Makamba said.
Meanwhile, Tanganda Tea Company, Meikles agricultural unit reported that output for the first quarter to June went up 33% to
1 874 tonnes due to favourable tea prices and weather patterns.
The company said the global average bulk tea prices were up 15% compared with the same period last year.
In the quarter under review, local tea sales were down, while regional sales increased.
Meikles has plans to acquire a new state-of-the-art tea-packing plant for the expansion of the regional markets.
The plant has been sourced from Europe. Meikles Hospitality recorded a 3% decline in turnover due to legislative processes that affected occupancy levels as international tourists were waiting for the elections.