Final Results

Meikles Africa Ld
31 May 2005

                             MEIKLES AFRICA LIMITED


                          PRELIMINARY ANNOUNCEMENT - 31 MARCH 2005


                        Salient features (historical cost)


                                    Turnover
                  $1 861 billion up 252%, (2004 - $528 billion)


                                 Operating profit
                              Year on year up 103%


                                Exchange gains
                       $86 billion, (2004 - $145 billion)


                 Attributable profit excl exchange gains and foreign investments
                            $86 billion up 197%, (2004 - $29 billion)

                              Cash generated from operations
                             $275 billion, (2004  -$60 billion)


                                   Final dividend
                                     of $150.00





COMMENTARY (HISTORICAL COST)



I am pleased to present the results of the Group for the year ended 31 March
2005.  The Group's operations within Zimbabwe achieved a significant growth in
profit, while foreign operations and investments were affected adversely by the
disparity of inflation and the foreign currency auction rate.  With average
inflation for the year at 195% the Zimbabwe dollar on the auction system
depreciated against the US dollar during the year by 39%.  This has caused the
adverse trend in profits of our foreign operations and investments.



The business objective within Zimbabwe has been the consolidation of existing
businesses, management of working capital and the attainment of significant
positive cash flows.  These objectives have been achieved.



Results - Historical Cost

Group turnover for the year of $1 861 billion, excluding VAT, is 252% up on the
previous year, whilst the operating profit has grown by 103% to $171 billion.



This result is emphasised by a significant growth in turnover and operating
profit in the second half of the year and more specifically in the last quarter,
where operating profit of $91 billion was 316% up on the previous year's last
quarter.



At the beginning of the year the challenges were to deal with the effects of
anti inflation measures which, although positive in terms of the overall
economic reform programme, required the retail sector to take stern measures to
ensure financial stability.  The second half of the year consolidated initial
progress made and placed the Group in a strong position to manage an improved
trading environment.



Net finance cost was down on the previous year with a significant reduction
reflected in the second half of the year as rates eased and as Group operating
cash flows grew markedly to $275 billion compared to $60 billion during the
previous year.  The share of result of the associates was 117% up on the prior
year.  Meikles Financial Services performed well but the results of Kingdom
Financial Holdings reflect the extremely difficult environment the Kingdom Group
had to endure in the final quarter of its financial year.



Exchange gains of $86 billion in our foreign investments compare with $145
billion in the previous year.  Figures are based on the auction rate of ZW$6 082
to US$1.  Profits attributable to shareholders at $181 billion are slightly down
on the previous year at $186 billion. An analysis of this shows a substantial
increase in profits from Zimbabwe operations particularly in the second half of
the year and an effective decrease, in real terms, in the value of foreign
investments and operations caused by the disparity of the auction exchange rate
movement to local inflation.



The directors consider it appropriate to increase the dividend in line with
inflation and a final dividend of $150 per share has been declared taking the
total for the year to $200 per share (2004 $65 per share).



Operations



TM Supermarkets (Private) Limited

•                     Net turnover increased by 285% from $379 billion to $1 459
billion.

•                     Operating profit grew by 164% to $110 billion.

•                     Net interest income grew to $37 billion (previous year $2
billion).

•                     Profit after tax of $103 billion is 239% up on the
previous year.

•                     Shrinkage was controlled at 1.1% of sales.

•                     Stockturns improved from 6.7 times to 11.6 times.



Retail Division

•                     Net turnover increased by 229% from $85 billion to $279
billion.

•                     Operating profit inclusive of our share of Meikles
Financial Services grew by 133% from $27 billion to $63 billion.

•                     Stockturns improved from 2 times to 4.4 times.

•                     Turnover increased markedly towards the end of the
financial year.

•                     Meikles Financial Services performed well, funding 55% -
60% of sales.



Hotels

•                     Turnover increased by 92% from $64 billion to $123
billion.

•                     Operating profit grew by 29% from $18 billion to $24
billion.

•                     Operating profit for the Zimbabwe hotels was 150% up on
the previous year at $4 billion.

•                     Occupancies in the Zimbabwe hotels and Cape Grace have
improved.

•                     Operating profit for the Cape Grace was 21% up on the
previous year at $20 billion.

•                     Disparity of the exchange rate resulted in operating
profit growth lower than inflation.



Kingdom Financial Holdings

•                     Meikles Africa has increased its shareholding in Kingdom
Financial Holdings from 25% to 33% after the rights issue.  As the single
largest shareholder in Kingdom, Meikles Africa along with other major
shareholders, is in a position to influence the performance of the Kingdom
group.



Social Responsibility

The Meikle Group continues to support old age homes as a major charitable
programme and has disbursed a total of $578 million to 46 homes for the aged
during the course of the year.



Outlook

We believe that the two retail operations within Zimbabwe will at least perform
in line with inflation.



The Zimbabwe based hotels will achieve growth, but occupancies are likely to
remain at low levels.  In Rand terms, the Cape Grace Hotel is expected to
perform better than South African inflation.



Cash generation within Zimbabwe will be considerable in the coming year.  The
Group is likely to end the forthcoming year with significant cash balances and
the net interest expense incurred in the year under review will become net
interest earned.



As the national economic recovery plan progresses, it is to be expected that the
country will move towards an exchange rate that will match movements in
inflation and interest rates.  If this occurs, the Group's foreign assets in
terms of valuation and contribution to profit, will benefit accordingly.  In
addition the Group's relationship with Mvelaphanda Group has identified new
opportunities, which will result in the enhancement of the Group's investments.



JOHN MOXON

CHAIRMAN

FINAL DIVIDEND ANNOUNCEMENT

On the 26 May 2005, the Board approved a final dividend Number 71 of $150 per
share on 163,656,787 shares payable to members registered in the books of the
Company at the close of business on 29 July 2005.  The Transfer Books and
Register of Members will be closed from 29 July 2005 to 15 August 2005.
Dividend cheques will be mailed to shareholders on or about 15 August 2005.  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

26 May 2005

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

Directors : J R T Moxon (Chairman), M A Masunda, D W Mills, (effective 22
February 2005) D E Stephens, C B Thorn, M S Wilson.



CONSOLIDATED INCOME STATEMENT

For the year ended 31 March 2005


                                                          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
                                                               2005     2004                 2005        2004

Revenue                                                   2,533,300    2,098,512        1,860,547     527,876


Cost of sales                                           (2,069,850)  (1,865,650)      (1,354,941)   (342,884)

Gross profit                                                463,450      232,862          505,606     184,992


Operating expenses                                        (545,501)    (481,528)        (349,794)   (105,809)
Other income                                                 19,832       19,992           14,868       4,758
Operating (loss)/profit                                    (62,219)    (228,674)          170,680      83,941


Net finance cost                                           (43,605)     (99,558)         (24,872)    (28,637)

Net exchange (losses)/gains                               (159,367)    (208,539)           86,083     145,367

Fair value adjustment on investment property                  6,151            -            6,163           -

(Decrease)/increase in value of quoted investment          (22,612)       12,174            5,472      20,179

Share of result of associates                                33,027       87,924           22,696      10,456

Impairment of other investments                            (16,090)            -               -           -
                                                                                



Net monetary gain                                           115,584      178,227                -           -

(Loss)/profit before taxation                             (149,131)    (258,446)          266,222     231,306


Taxation                                                   (15,419)     (31,128)         (59,945)    (37,732)

(Loss)/profit after taxation                              (164,550)    (289,574)          206,277     193,574

Minority interest                                          (13,713)     (18,115)         (24,807)     (7,839)

Net (loss)/profit attributable to shareholders            (178,263)    (307,689)          181,470     185,735


Basic (loss)/earnings per share ($)                      (1,089.25)   (1,887.86)         1,108.84    1,139.60

IIMR Headline (loss)/earnings per share ($)                (982.41)   (1,784.71)         1,107.98    1,139.23



Net monetary gain

Gross monetary gain/(loss)                                  132,342   (281,995)                -             -
Add: historic exchange gains restated                       142,609     668,761                -             -
Less: transfer to net exchange gains and change in
value of quoted investment
                                                          (159,367)   (208,539)                -             -


Net monetary gain                                           115,584     178,227                -             -




CONSOLIDATED BALANCE SHEET

At 31 March 2005


                                                       INFLATION ADJUSTED                      HISTORICAL COST
                                                      Audited                Audited           Audited         Audited
                                                           At                     At                At              At
                                               31 March 2005       31 March 2004              31 March   31 March 2004
                                                                                                  2005


ASSETS

Non-current assets                                    717,653                786,966           301,048         142,308
Current assets                                        672,476                916,972           651,191         388,622
Total assets                                        1,390,129              1,703,938           952,239         530,930


EQUITY AND LIABILITIES
Capital and reserves                                  751,498                951,890           419,842         253,112
Minority interest                                      23,506                 31,569             8,663           3,330
Non-current liabilities                               234,503                450,396           143,112         153,754
Current liabilities                                   380,622                270,083           380,622         120,734
Total equity and liabilities                        1,390,129              1,703,938           952,239         530,930





CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the year ended 31 March 2005
INFLATION ADJUSTED - Audited
                                                            Share      Share            Non-   (Accumulated       Total
                                                                                                     Loss)/
                                                           Capital   Premium   Distributable
                                                                                    Reserves       Retained
                                                                                               Earnings and
                                                                                               Shareholders
                                                                                               for Dividend
Balance at 1 April 2004                                      8,268   588,149         323,314         32,159     951,890
Net loss attributable to shareholders                            -         -               -      (178,263)   (178,263)
Cape Grace Hotel - translation of foreign entity                 -         -           7,817              -       7,817
Share of reserves of associate                                   -         -         (4,880)              -     (4,880)
Negative goodwill arising from reverse acquisition on            -         -        (87,765)         87,765           -
initial listing
Dividend for 2004 - final                                        -         -               -       (14,646)    (14,646)
Dividend for 2005 - interim                                      -         -               -       (10,420)    (10,420)


Balance at 31 March 2005                                     8,268   588,149         238,486       (83,405)     751,498

Balance at 1 April 2003                                      8,268   587,648         226,364        385,766   1,208,046
Net loss attributable to shareholders                            -         -               -      (307,689)   (307,689)
Cape Grace Hotel - translation of foreign entity                 -         -          89,771              -      89,771
Share of reserves of associate                                   -         -           7,179              -       7,179
Share options exercised                                          -       501               -              -         501
Dividend for 2003 - final                                        -         -               -       (28,633)    (28,633)
Dividend for 2004 - interim                                      -         -               -       (17,285)    (17,285)
Balance at 31 March 2004                                     8,268   588,149         323,314         32,159     951,890

HISTORICAL COST - Audited
                                                             Share     Share            Non-       Retained       Total
                                                           Capital   Premium   Distributable   Earnings and
                                                                                    Reserves   Shareholders
                                                                                               for Dividend
Balance at 1 April 2004                                         16     5,356          16,853        230,887     253,112
Net profit attributable to shareholders                          -         -               -        181,470     181,470
Cape Grace Hotel - translation of foreign entity                 -         -           1,142              -       1,142
Share of reserves of associate                                   -         -         (1,152)              -     (1,152)
Negative goodwill arising from reverse acquisition on            -         -           (153)            153           -
initial listing
Dividend for 2004 - final                                        -         -               -        (6,546)     (6,546)
Dividend for 2005 - interim                                      -         -               -        (8,184)     (8,184)
                                                                16     5,356          16,690        397,780     419,842

Balance at 31 March 2005

Balance at 1 April 2003                                         16     5,305             505         51,112      56,938
Net profit attributable to shareholders                          -         -               -        185,735     185,735
Cape Grace Hotel - translation of foreign entity                 -         -          14,476              -      14,476
Share of reserves of associate                                   -         -           1,872              -       1,872
Share options exercised                                          -        51               -              -          51
Dividend for 2003 - final                                        -         -               -        (1,872)     (1,872)
Dividend for 2004 - interim                                      -         -               -        (4,088)     (4,088)
Balance at 31 March 2004                                        16     5,356          16,853        230,887     253,112




CONSOLIDATED CASH FLOW STATEMENT

For the year ended 31 March 2005


                                                 INFLATION ADJUSTED                                 HISTORICAL COST
                                                 Audited    Audited                                Audited       Audited
                                              Year ended Year ended                             Year ended    Year ended
                                               31 March    31 March                              31 March  31 March 2004
                                                 2005         2004                                 2005


Cash flows from operating activities

(Loss)/profit before taxation                  (149,131)  (258,446)                                266,222       231,306
Adjustments for:
  Non-operating cash flow                        197,356    306,404                               (65,792)     (117,283)
  Non-cash items                                  72,799     59,182                               (30,873)      (10,944)

Operating cash flow before working capital       121,024    107,140                                169,557       103,079
changes
Generated from/(used in) working capital         187,436     14,467                                105,791      (42,610)
changes
Operating cash flow                              308,460    121,607                                275,348        60,469
Income tax paid                                 (37,021)   (31,370)                               (16,127)       (7,616)
Net cash generated from operating                271,439     90,237                                259,221        52,853
activities


Net cash generated from/ (used in)                 5,759     85,921
investing activities
                                                                                                  (41,330)         3,087

Net cash used in financing activities          (283,271)  (229,726)                              (169,928)      (11,748)

Net effect of exchange rate changes
on cash and cash equivalents                   (159,367)  (208,539)                                 86,083       145,367

Net (decrease)/increase in cash and cash       (165,440)  (262,107)                                134,046       189,559
equivalents

Cash and cash equivalents at 31 March 2004       541,590    803,697                                242,104        52,545

Cash and cash equivalents at 31 March 2005       376,150    541,590                                376,150       242,104



SUPPLEMENTARY INFORMATION

Capital expenditure                                       24,289      43,692             19,336          11,824

Capital commitments authorized but not yet                78,433      65,770             78,433          29,401
contracted for

Depreciation                                              47,710      65,385              9,298           5,262

Guarantees                                                19,462      19,462             19,462          14,022





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