Final Results

Meikles Africa Ld
30 May 2006





                AUDITED RESULTS FOR THE YEAR ENDED 31 MARCH 2006


                                SALIENT FEATURES

                    References are to historical information


                                  Net turnover

                        Increased by 555% to $12,2 trillion


                                 Operating profit

                        Increased by 1023% to $1,9 trillion


                                Attributable profit

                            Increased to $5,7 trillion


                                  Exchange gains

            $4,2 trillion compared to $86 billion in the previous year


                      Investment income and quoted investments

            Income and increase in value, up by 1581% to $992 billion


                               Dividend per share

         At $2,375 per share, the dividend is up 1087% on the prior year.

          The final dividend of $2,000 per share amounts to $327 billion


                      Cash generated and funds available

    Funds generated from operations were $1,1 trillion (2005: $281 billion)

                    Funds on hand amount to $4,3 trillion






COMMENTARY


Meikles Africa set out an ambitious five-part strategy for the year ended 31
March 2006 and each division has delivered results that exceeded expectations.


The strategy enabled operations to retain focus and consistency in our ever
changing environment. Each division was encouraged to adapt to opportunities
within the framework.


The following goals, which ensured operating profit in excess of inflation, were
pursued;


•         That a greater share of a diminishing market be secured.

•         That no compromise be made in the procurement of sufficient
          inventory.

•         That working capital management responded rapidly to interest and
          exchange rate movements.

•         That store upgrades and TM expansion projects be pursued vigorously.

•         That Meikles Africa Hotels maintained standards commensurate with
          Leading Hotels of the World.


Meikles Africa is pleased to report that the results for the year reflect a
performance that not only shows financial growth in all divisions but a solid
realisation of potential relative to competitors.


The inflation adjusted financial statements show real growth in turnover and
operating profit after the net monetary gain, confirming the strength of trading
and management of costs.  The balance sheet also reflects a significant growth
in equity matched by the enhancement of the net asset value of the Group.


Operations


TM Supermarkets (Private) Limited

•         Net turnover grew by 576% to $9,8 trillion.

•         Operating profit increased by 1034% to $1,2 trillion.

•         Investment income increased by 850% to $365 billion.

•         Profit before tax was $1,6 trillion, a 997% increase on prior year.

•         Market shift in sales mix to basic product lines was successfully 
          managed.

•         Shrinkage was satisfactorily contained.

•         A new unit was opened in Chikanga, Mutare in March 2006.
          Contractors are on site in Kariba and the finalisation of leases is at
          an advanced stage for three new outlets.


Department Stores

•         The results, excluding Medix, reflect an increase in turnover of 376% 
          to $1,1 trillion and an increase in profit before tax of 681%
          to $253 billion.

•         Stock turns were 3,8 against 2,9 last year.

•         Managing stock has required a policy of replacement pricing whilst 
          retaining a competitive edge.

•         The new 'Storeline' Point of Sale system, which is 75% complete, will
          assist in providing information to more effectively deal with pricing,
          unit stock control and sales data.


Hotels

•         Turnover increased by 865% to $1,2 trillion.

•         Profit before tax for the division at $366 billion was up 1730% on the
          prior year.

•         Profit before tax for the Zimbabwe Hotels at $107 billion was 1598% up
          on the prior year.

•         At the Cape Grace, profit before tax at $259 billion was up 1972% on 
          the prior year - an increase of 24% in South African Rand terms.

•         Tight cost control and the movement of the exchange rate contributed 
          to the good results for the division.

•         Occupancy at Victoria Falls Hotel increased by three percentage points
          while that at the Meikles Hotel decreased by the same figure.

•         Occupancy at the Cape Grace grew by seven percentage points.

•         The hotels were cash sufficient with all planned capital expenditure 
          being financed from operating cash flow.

•         Meikles Africa Hotels continued to dominate local and South African 
          awards for quality service and product.


Group Investments

•         Mvelaphanda showed positive growth of more than 40% in the Rand share 
          price and gains arising from exchange rate movement.

•         Plans to achieve a larger strategic alignment with Mvelaphanda 
          Holdings are progressing.

•         Exchange gains amounted to $4,2 trillion on foreign funds.

•         The Group's share of the results of Kingdom Financial Holdings was 
          $60 billion, compared to $1,2 billion in the prior year.

•         Meikles Africa, together with Econet, will underwrite the Kingdom 
          rights issue of $1,5 trillion in June 2006.


Social Responsibility


The Group's main focus is to continue supporting the aged.  To this end the
Group is currently donating in excess of $500 million per month and this will be
increased at least in line with inflation.


Conclusion


The Meikles Africa Group performed well in areas under its control during the
year.  If exchange rate movement had been allowed to track inflation in the last
quarter, there would have been substantial enhancement in profit over that
achieved.  The Group has advanced its competitive edge and it is expected that
this will be maintained in the coming year as evidenced in results so far.  The
balance sheet strength will ensure that the Group is well poised to manage the
economic environment


JOHN MOXON

CHAIRMAN

FINAL DIVIDEND ANNOUNCEMENT

On the 24th of May 2006, the Board approved a final dividend Number 73 of $2,000
per share on 163,656,787 shares payable to members registered in the books of
the Company at the close of business on 16 June 2006.  The Transfer Books and
Register of Members will be closed from 19 June 2006 to 3 July 2006.  Dividend
cheques will be mailed to shareholders on or about 3 July 2006.  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

24 May 2006

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), M A Masunda, D W Mills, D E Stephens, C B
Thorn, M S Wilson.



AUDITED CONSOLIDATED INCOME STATEMENT

For the year ended 31 March 2006


                                                          INFLATION ADJUSTED         HISTORICAL COST
                                                                        Restated
(all amounts in millions of dollars)                     Year ended   Year ended   Year ended  Year ended


                                                           31 March     31 March     31 March    31 March
                                                               2006         2005         2006        2005


Revenue                                                  29,257,522   25,676,616   12,190,889   1,860,547

Operating (loss) / profit                                 (922,802)    (630,630)    1,916,362     170,680
Net monetary gain                                         2,854,702    1,277,860            -           -

Operating profit after net monetary gain                  1,931,900      647,230    1,916,362     170,680

Investment Income                                           734,935      707,113      361,924      53,607

Finance costs                                             (318,299)  (1,149,077)    (105,478)    (78,479)

Net exchange gains                                        1,744,151  (1,615,286)    4,230,581      86,083

Fair value adjustment on investment property                      -       62,344            -       6,163

Increase / (decrease) in value of quoted investment         373,304    (229,187)      630,701       5,472

Net share of result of associates                         (192,426)       31,218       79,235      15,223

Loss on disposal of subsidiaries                           (77,892)            -        (666)           -
Profit / (loss) before taxation                           4,195,673  (1,545,645)    7,112,659     258,749


Taxation                                                  (948,112)     (95,173)  (1,127,913)    (52,472)

Profit / (loss) for the year                              3,247,561  (1,640,818)    5,984,746     206,277
Attributable to:
Equity holders of the parent                              2,919,365  (1,779,808)    5,706,027     181,470
Minority interest                                           328,196      138,990      278,719      24,807
                                                          3,247,561  (1,640,818)    5,984,746     206,277

Basic earnings / (loss) per share ($)                        17,838     (10,875)       34,866       1,109

IIMR Headline earnings / (loss) per share ($)                17,956      (9,792)       34,796       1,108






AUDITED CONSOLIDATED BALANCE SHEET

At 31 March 2006


                                INFLATION ADJUSTED                  HISTORICAL COST
                                              Restated
(all amounts in millions of             At          At              At              At
dollars)
                                  31 March    31 March        31 March        31 March
                                      2006        2005            2006            2005

ASSETS

Property, plant & equipment      5,218,740   4,349,669       2,180,780         146,011
Investments-quoted               1,248,080     941,867         773,273          72,324
Investments-unquoted             1,543,105     899,059       1,469,240          81,130
Other non-current assets         1,083,277   1,083,277           1,583           1,583
Current assets                   8,663,570   6,815,974       8,192,991         651,191
Total assets                    17,756,772  14,089,846      12,617,867         952,239


EQUITY AND LIABILITIES
Attributable to equity
holders of the parent
                                10,686,552   7,616,912       6,715,454         419,842
Minority interest                  425,062     238,248         245,657           8,663
Deferred taxation                1,603,446   1,220,515         615,044          29,027
Other non-current                1,033,814   1,156,324       1,033,814         114,085
liabilities
Current liabilities              4,007,898   3,857,847       4,007,898         380,622
Total equity and liabilities    17,756,772  14,089,846      12,617,867         952,239





AUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the year ended 31 March 2006


                                                          INFLATION ADJUSTED                       HISTORICAL COST

                                                                           Restated
(all amounts in millions of dollars)                   Year ended        Year ended            Year ended     Year ended
                                                         31 March          31 March              31 March       31 March
                                                             2006              2005                  2006           2005
                                                                        

Profit / (loss) for the year                            2,919,365       (1,779,808)             5,706,027        181,470
Cape Grace Hotel - translation of                         469,496            52,229               664,905          1,142
foreign entity
Share of reserves of associate                             44,554          (49,462)                12,725        (1,152)
Share of prior year adjustment of                          16,548                 -               (2,125)              -
associates' reserves
Dividend - prior year final                             (248,820)         (148,447)              (24,549)        (6,546)
Dividend-current year interim                           (131,503)         (105,613)              (61,371)        (8,184)
Attributable to equity holders of parent                3,069,640       (2,031,101)             6,295,612        166,730
Minorities                                                186,814          (81,724)               236,994          5,333
Shareholders' equity at the beginning of                7,855,160         9,967,985               428,505        256,442
the year
Shareholders' equity at the end of the                 11,111,614         7,855,160             6,961,111        428,505
year




AUDITED CONSOLIDATED CASH FLOW STATEMENT

For the year ended 31 March 2006


                                                                INFLATION ADJUSTED             HISTORICAL COST
                                                                          Restated
(all amounts in millions of dollars)                        Year ended  Year ended     Year ended   Year ended
                                                              31 March    31 March       31 March     31 March
                                                                  2006        2005           2006         2005

Cash flows from operating activities

Profit / (loss) before taxation                              4,195,673 (1,545,645)      7,112,659      258,749
Adjustments for:
  Non-operating cash flow                                  (1,979,088)   1,969,110    (4,571,268)     (58,319)
  Non-cash items                                               685,035     990,718      (580,879)     (25,173)

Operating cash flow before working capital changes           2,901,620   1,414,183      1,960,512      175,257
(Used in) / generated from working capital changes         (1,328,717)   1,899,786      (864,813)      105,791
Cash generated from operations                               1,572,903   3,313,969      1,095,699      281,048
Taxation paid                                                (749,362)   (375,232)       (97,474)     (16,127)
Net cash generated from operating activities                   823,541   2,938,737        998,225      264,921


Net cash used in investing activities                        (143,145)   (184,053)      (318,350)     (41,330)

Net cash used in financing activities                      (2,585,794) (2,871,133)      (312,948)    (169,928)

Net (decrease) / increase in cash and cash equivalents     (1,905,398)   (116,449)        366,927       53,663

Cash and cash equivalents at beginning of year               3,812,521   5,489,361        376,150      242,104

Net effect of exchange rate changes on cash and cash         1,744,151 (1,615,286)      4,230,581       86,083
equivalents
Translation of foreign entity                                  661,683      54,895      (660,701)      (5,700)

Cash and cash equivalents at end of year                     4,312,957   3,812,521      4,312,957      376,150







AUDITED SEGMENT INFORMATION
                                                                               

                                      INFLATION ADJUSTED                       HISTORICAL COST
                                                       Restated
(all amounts in millions of          Year ended      Year ended       Year ended      Year ended
dollars)                          31 March 2006   31 March 2005    31 March 2006   31 March 2005


 Revenue
Hotels                                2,393,665       1,708,970        1,183,981         122,582
Supermarkets                         23,793,040      20,135,695        9,858,031       1,459,241
Retail                                3,070,817       3,831,951        1,148,877         278,724
                                     29,257,522      25,676,616       12,190,889       1,860,547
Operating profit / (loss) after
monetary adjustment
Hotels                                  495,978        (32,485)          348,369          23,633
Supermarkets                          1,117,398         773,897        1,248,707         110,069
Retail                                  475,450     (1,385,370)          317,020          42,732
Corporate                             (156,926)       1,291,188            2,266         (5,754)
                                      1,931,900         647,230        1,916,362         170,680
Segment assets
Hotels                                5,155,701       4,042,580        2,959,270         184,215
Supermarkets                          4,812,048       4,557,551        3,774,278         360,685
Retail                                2,349,040       2,986,578        1,078,151         190,978
Corporate                             5,439,983       2,503,137        4,806,168         216,361
                                     17,756,772      14,089,846       12,617,867         952,239




SUPPLEMENTARY INFORMATION                              INFLATION ADJUSTED         HISTORICAL COST
(all amounts in millions of dollars)

Capital expenditure                                    463,588    246,184       255,783    19,336

Capital commitments authorized but not yet           2,778,059    794,969     2,778,059    78,433
contracted for

Depreciation                                           357,974    483,571        60,650     9,298

Market value of investments

       - Associate - Kingdom Financial Holdings        270,045    669,054       270,045    66,010
Limited

       - Investment - Mvelaphanda Group                658,876    285,572       658,876    28,175

Interest bearing borrowings                          1,417,400  1,776,939     1,417,400   175,316

Guarantees                                             557,445    197,260       557,445    19,462



Accounting policies

The International Accounting Standards Board has released a number of new
accounting standards and made amendments to existing standards. The impact of
these changes has been assessed and applied.


The inflation adjusted financial statements reflect a change in accounting for
the effect of the restatement of the foreign entities' income statements in
terms of IAS 29, and the restatement of the historical movements in the foreign
currency translation reserve (FCTR), in line with preferred treatment after
further interpretation of IAS 29 (Financial Reporting in Hyperinflationary
Economies) and IAS 21 (Revised) The Effect of Changes in Foreign Exchange Rates.

The effect of the income statement restatement is now taken against FCTR and not
monetary adjustment as in the past. Previously the FCTR was restated from the
month in which it was generated. These changes have the effect of reallocating
amounts between the FCTR and retained income. The effect of these changes is to
reduce the prior period inflation adjusted loss by $27 billion and to increase
the opening retained income at 1 April 2004 by $2,096 billion, the corresponding
balance sheet adjustment being to FCTR.



Note to inflation adjusted financial statements

The consumer price indices used to restate the financial statements at 31 March
2006 are as follows:

31 March 2006                                      705,209.4
31 March 2005                                      69,577.2
31 March 2004                                      31,102.7



For further information contact either:



Zimbabwe                              Bryan Thorn  [phone]/78
                                      Roy Franklin [phone]/78




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