Final Results

Meikles Africa Ld
27 May 2003


                             MEIKLES AFRICA LIMITED

                PRELIMINARY RESULTS ANNOUNCEMENT - 31 MARCH 2003

Meikles Africa Limited, the Southern African hotel and retail group, which is
listed on the Zimbabwe and London Stock Exchanges, announces preliminary results
for the year ended 31st March 2003.

                   Financial Highlights - Inflation Adjusted

  • Turnover of $122.4 billion up 32%.
  • Operating profit of $3.1 billion compared to a loss of $877 million last
    year
  • Exchange gains of $51.6 billion compared to $20.0 billion last year.
  • Attributable profit of $24.0 billion compared to $7.0 billion last year.
  • Final dividend of $11.50.

                       Financial Highlights - Historical

  • Turnover of $74.9 billion up 255%
  • Operating profit of $13.9 billion compared to $2.3 billion last year.
  • Exchange gains of $37.0 billion compared to $4.3 billion last year.
  • Attributable profit of $42.1 billion compared to $5.9 billion last year.



CHAIRMAN'S STATEMENT

I am pleased to report a very satisfactory set of results which have been
achieved under challenging economic and political conditions.

Buoyant retail demand continued throughout the year as consumers showed
preference for assets over cash in the inflationary environment.  Our deliberate
policy shift towards holding more stocks enabled both retail divisions to take
full advantage of the strong demand trends.  Well established relationships with
the major suppliers also enabled our supermarkets to obtain supplies as
shortages began to take their toll.  As a result, both retail divisions improved
their volume and market share during the year.

Local hotel operations suffered from the international image of Zimbabwe,
although judicious room rate management and our good reputation for quality
ensured that both hotels remained profitable.  The outstanding performance of
the Cape Grace Hotel vindicates our policy of regional investment, particularly
in tourism.  It is this diversification and the strong management base of the
Group that enables me to report the sound results achieved this year.

It is pleasing to note that recent moves by the Ministry of Finance and Economic
Development and the Reserve Bank to curb the parallel foreign currency market by
offering export supplement rates of Z$800 to the US Dollar, has had some impact
on the inflow of foreign currency.  However, further complementary measures will
need to be taken before a return to economic stability can be anticipated.

RESULTS

The Group was able to achieve on an historical basis, turnover growth of 255%
and growth in operating profit of 505%.

Net interest payable of $1.5 billion is covered nine times by operating profit,
and compares favourably to exchange gains of $37 billion.

The Group's share of Kingdom Financial Holdings result of $1.3 billion is up on
the prior year figure of $586 million.

Headline earnings per share increased by 597% on an historical basis, and by
175% on an inflation adjusted basis.

OPERATIONS - HISTORICAL COST

TM Supermarkets
•        Turnover increased by 217% from $15.6 billion to $49.6 billion
•        Operating profit grew by 385% from $1.3 billion to $6.3 billion

In spite of  accelerating inflation during the year, TM achieved sales growth in
excess of the official average inflation rate.  Margins were threatened by the
imposition of price controls on a wide range of basic commodities, and the high
acquisition costs of imported product. Careful management and a strategic policy
of holding higher inventories enabled the business to generate margins
acceptable in the current environment.  Labour unrest and social disruptions at
various times during the year called for exceptional store management skills,
and our managers are to be congratulated on their performance.

Retail
•        Turnover increased by 289% from $3.3 billion to $13 billion.
•        Operating profit increased by 509% from $522 million to $3.2 billion.

Stores experienced real growth in turnover as consumer preference for converting
cash into hard assets continued.  Strategic buying of  popular imported lines,
such as footwear, clothing, children's wear, toys and household goods, whenever
foreign currency could be acquired, enabled the Department Stores to remain well
stocked through most of the year.  Furniture and appliance sales were strong and
cosmetics showed good growth despite a shortage of locally supplied products.
Medix, in its first full year of operation in the Group, has proved to be
profitable and the synergies arising from the association with Clicks are
becoming apparent.  The Clicks chain achieved good growth, with a particularly
strong demand for products imported  from Clicks South Africa, and good
performances from units in low density areas.

Hotels
•        Turnover increased by 482% from $2.1 billion to $12.3 billion.
•        Operating profit increased by 798% from $518 million to $4.7 billion.

Zimbabwe

Both Zimbabwe hotels were severely affected by low occupancies as a result of
the country's image.  Despite this, good average room rates and tight cost
controls enabled both units to remain profitable.  The emphasis on service
delivery enabled the hotels to maintain their high performance ratings with
Leading Hotels of the World.

South Africa

An excellent season in Cape Town saw the Cape Grace performing very well, with
both room rate and occupancy well above expectations.  Improvements to the hotel
included the opening of a business centre.  Approval was granted for the
building of a Spa which will be opened in October 2003.  The International
Conference Centre which will open this year is expected to impact positively on
the hotel in the second half of the year.

KINGDOM FINANCIAL HOLDINGS

Kingdom continues to make progress with its retail bank and a further three
branches were added this year.  A total of fourteen branches are currently
operating of which five are in or adjacent to Group operations.  We support
Kingdom's strategy and invested a further Z$380 million by fully taking up our
share of the Rights Issue in December 2002.

STRATEGY

During the course of the year shareholders passed an ordinary resolution to
place 15 million unissued shares under the control of the Directors, as part of
our strategy to incentivise and retain a broad cross section of the company's
managerial employees.  A total of 413 senior, middle and junior management
employees were invited to purchase 4 783 882 Meikles Africa shares through the
share purchase schemes.

The integration of Medix and Clicks continues and we expect to roll out 5 new
stores during next year. The Group has aligned itself to the vision of the
Department of Pharmacy at the University in creating strong strategic
partnerships with the practising profession.  In this regard it has committed to
funding 18 bursaries at the University as well as supporting a new post of
Co-ordinator of Pharmacy Practice.  Supermarket and Retail division expansion
will continue as suitable opportunities arise.  Our Hotel division has been
selected as the preferred partner for a new hotel project in Franschhoek South
Africa, and we are in the process of negotiating the terms of our participation.

The Group has received approval to invest a substantial part of its US dollars,
currently held in the Reserve Bank of Zimbabwe, in an investment opportunity in
South Africa.  Negotiations are underway with prospective partners but have not
been concluded, and as such it would be wholly inappropriate to be more
specific.  Shareholders will be fully informed as required.

I would like to thank my fellow Directors for their contribution during the year
and pay particular tribute to all management and staff who have performed
admirably under testing circumstances.  The Group owes much to their dedication
and professionalism.

FINAL DIVIDEND ANNOUNCEMENT

On the 22nd May 2003, the Board approved a final dividend Number 67 of $11.50
per share on 162,782,187 shares payable to members registered in the books of
the company at the close of business on 20th June 2003.  The Transfer Books and
Register of Members will be closed from 21st June 2003 to 6th July 2003.
Dividend cheques will be mailed to shareholders on or about 7th July 2003.  The
dividends payable to non-resident shareholders will be paid in accordance with
Exchange Control Regulations.  Shareholders' withholding tax will be deducted
where applicable.

By order of the Board

A.P. LANE-MITCHELL
Company Secretary

22  May 2003

All current financial, operational and structural information on Meikles Africa
Limited can be obtained by visiting Meikles Africa Limited's website at  :http:/
www.meiklesafrica.co.zw

Directors : J R T Moxon (Chairman), A C L Parvin (Chief Executive), D E
Stephens, M A Masunda, M V Cameron, M S Wilson
Enquiries:


Meikles Africa                                                [phone]
Chris Parvin, Chief Executive

College Hill                                                  [phone]
Corinna Dorward



CONSOLIDATED INCOME STATEMENT
For the year ended 31 March 2003


                                                         INFLATION ADJUSTED           HISTORICAL COST
                                                        Audited     Audited         Audited       Audited
(all amounts in millions of dollars)                 Year ended  Year ended      Year ended    Year ended
                                                       31 March  31 March          31 March 31 March 2002
                                                           2003    2002                2003


Turnover                                                122,368      92,808          74,853        21,096

Cost of sales                                          (94,071)    (71,935)        (46,092)      (14,551)

Gross profit                                             28,297      20,873          28,761         6,545


Operating expenses                                     (25,964)    (23,479)        (15,244)       (4,547)
Other income                                                778       1,729             361           296
Operating profit/(loss)                                   3,111       (877)          13,878         2,294

Net interest                                            (2,711)       (922)         (1,542)         (188)
Exchange gains                                           51,612      19,962          36,960         4,329
Share of result of associate                              2,254       3,723           1,253           586
Net monetary loss                                      (19,480)    (10,114)               -             -

Profit before taxation                                   34,786      11,772          50,549         7,021

Taxation                                                (9,341)     (3,838)         (7,255)         (841)

Profit after taxation                                    25,445       7,934          43,294         6,180

Minority interest                                       (1,411)       (905)         (1,173)         (235)

Net profit attributable to shareholders                  24,034       7,029          42,121         5,945


Basic earnings per share ($)                             153.12       45.16          268.36         38.20

IIMR Headline earnings per share ($)                     161.84       58.87          269.10         38.59


CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
For the year ended 31 March 2003

Net profit for the year attributable to                  24,034       7,029          42,121         5,945
shareholders
Net gains not recognised in the income statement
- Fair value adjustment on associate                    (2,544)           -               -             -
- (Decrease)/increase in value of quoted                    (8)       2,503           1,752           336
investments
- Deferred capital gains tax                               (19)          85           (343)          (63)
Total recognised gains and losses                        21,463       9,617          43,530         6,218




CONSOLIDATED BALANCE SHEET
At 31 March 2003

                                                  INFLATION ADJUSTED                    HISTORICAL COST
                                               Audited           Audited               Audited          Audited
                                                    at               at                     at               at
                                              31 March         31 March               31 March         31 March
                                                  2003             2002                   2003             2002

ASSETS
Non-current assets                                  51,235           48,657             23,879            8,903
Current assets                                      78,508           38,985             75,754           11,523
Total assets                                       129,743           87,642             99,633           20,426

EQUITY AND LIABILITIES
Capital and reserves                                79,000           49,284             56,957           10,430
Minority interest                                    1,962            1,499                486              159
Non-current liabilities                             32,432           22,290             25,841            5,395
Current liabilities                                 16,349           14,569             16,349            4,442
Total equity and liabilities                       129,743           87,642             99,633           20,426





CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 31 March 2003
INFLATION ADJUSTED -Audited

                                        Share           Share               Non-               Retained        Total
                                       Capital         Premium         Distributable         Earnings and
                                                                          Reserves           Shareholders
                                                                                             for Dividend

Balance at 1 April 2002                    541          34,065                 8,167                6,511     49,284
Net profit attributable to                   -               -                     -               24,034     24,034
shareholders
Net loss not recognised in income
statement:
-Fair value adjustment on                    -               -                     -               (2,544)    (2,544)
associate
-Decrease in valuation of quoted             -               -                     -                  (27)       (27)
investments
Cape Grace Hotel                             -               -                 6,158                    -      6,158
Share options exercised                      -           4,355                     -                    -      4,355
Share of prior year adjustment in            -               -                     -                  (81)       (81)
associate retained income
Share of reserves of associate               -               -                   474                    -        474
Dividend for 2002 - final                    -               -                     -               (1,617)    (1,617)
Dividend for 2003 - interim                  -               -                     -               (1,036)    (1,036)

Balance at 31 March 2003                   541          38,420                14,799               25,240     79,000

Balance at 1 April 2001                    538          33,783                 6,530                 (659)    40,192
Net profit attributable to                   -               -                     -                7,029      7,029
shareholders
Net gains not recognised in
income statement:
-Increase in valuation of quoted             -               -                     -                2,588      2,588
investments
Cape Grace Hotel                             -               -                 1,637                    -      1,637
Share options exercised                      3             282                     -                    -        285
Dividend for 2001 - final                    -               -                     -               (1,620)    (1,620)
Dividend for 2002 - interim                  -               -                     -                 (827)      (827)

Balance at 31 March 2002                   541          34,065                 8,167                6,511     49,284


HISTORICAL COST - Audited

                                        Share           Share               Non-               Retained        Total
                                       Capital         Premium         Distributable         Earnings and
                                                                          Reserves           Shareholders
                                                                                             for Dividend

Balance at 1 April 2002                     16             991                   627                8,796     10,430
Net profit attributable to                   -               -                     -               42,121     42,121
shareholders
Net gains not recognised in
income statement:
-Increase in valuation of quoted             -               -                     -                1,409      1,409
investments
Cape Grace Hotel                             -               -                   (35)                   -        (35)
Share options exercised                      -           4,314                     -                    -      4,314
Share of prior year adjustment in            -               -                     -                  (13)       (13)
associate retained income
Share of reserves of associate               -               -                   (87)                   -        (87)
Dividend for 2002 - final                    -               -                     -                 (493)      (493)
Dividend for 2003 - interim                  -               -                     -                 (689)      (689)

                                            16           5,305                   505               51,131     56,957
Balance at 31 March 2003

Balance at 1 April 2001                     15             928                   262                3,006      4,211
Net profit attributable to                   -               -                     -                5,945      5,945
shareholders
Net gains not recognised in
income statement:
-Increase in valuation of quoted             -               -                     -                  273        273
investments
Cape Grace Hotel                             -               -                   365                    -        365
Share options exercised                      1              63                     -                    -         64
Dividend for 2001 - final                    -               -                     -                 (232)      (232)
Dividend for 2002 - interim                  -               -                     -                 (196)      (196)

Balance at 31 March 2002                    16             991                   627                8,796     10,430


CONSOLIDATED CASH FLOW STATEMENT
For the year ended 31 March 2003


                                                                     INFLATION ADJUSTED              HISTORICAL COST
                                                             Audited            Audited              Audited     Audited
                                                          Year ended         Year ended           Year ended  Year ended
                                                    31 March 2003      31 March 2002              31 March      31 March
                                                                                                    2003            2002


Cash flows from operating activities

Profit before taxation                                        34,786             11,772               50,549       7,021
Adjustment for:
  Non-operating cash flow                                   (48,760)            (5,163)             (35,457)     (4,165)
  Non-cash items                                               6,050           (18,567)                (630)       (181)

Operating cash flow before working capital                   (7,924)           (11,958)               14,462       2,675
changes
Used in working capital changes                              (7,133)              (305)              (9,143)       (979)
Operating cash flow                                         (15,057)           (12,263)                5,319       1,696
Income tax paid                                              (1,342)            (1,584)                (556)       (197)
Net cash (used in)/ generated from                          (16,399)           (13,847)                4,763       1,499
operating activities

Net cash (used in)/generated from investing                  (2,989)              1,711              (1,410)     (1,371)
activities

Net cash (used in)/generated from financing                  (2,038)            (9,239)                5,415     (1,053)
activities

Net effect of exchange rate changes
on cash and cash equivalents                                  51,612             19,962               36,960       4,329

Net increase/(decrease) in cash and cash                      30,186            (1,413)               45,728       3,404
equivalents

Cash and cash equivalents at 31 March 2002                    22,359             23,622                6,817       3,376
Cash acquired with Cape Grace Hotel and                            -                150                    -          37
Medix Limited

Cash and cash equivalents at 31 March 2003                    52,545             22,359               52,545       6,817





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