Interim Results
Meikles Africa Ld
12 November 2001
MEIKLES AFRICA LIMITED
Interim Results for the Six Months to 30th September 2001
Meikles Africa Limited, the Southern African hotel and retail group, which is
listed on the Zimbabwe and London Stock Exchanges, announces interim results
for the year ended 31st March 2001.
Financial Highlights - Inflation Adjusted
* Turnover of $8.8 billion up 5%.
* Operating loss of $70 million compared to a loss of $240 million
last year.
* Attributable profit of $406 million compared to a loss of $264 million
last year
Financial Highlights - Historical
* Turnover of $7.3 billion up 78%
* Operating profit of $556 million compared to a profit of $363 million
last year.
* Attributable profit of $2 billion compared to a profit of $525 million
last year.
Enquiries:
Meikles Africa Tel: +263 4 252068
Chris Parvin, Chief Executive
College Hill Tel: 020 7457 2020
Corinna Dorward Email: corinna.dorward@collegehill.com
DIVIDEND
* Interim dividend of 125 cents compared to 70 cents last year.
TM SUPERMARKETS
* New Supermarket opened in Zengeza.
* A new flagship Borrowdale branch in Harare is to open in December 2001.
RETAIL DIVISION
* New Clicks store opened in Gweru in October 2001.
* New Clicks store in Bulawayo to open in November 2001.
* Further synergies with Kingdom Financial Holdings achieved by
integration of retail credit operations into Kingdom bank.
HOTEL DIVISION
* American terrorist disaster affected occupancies but now recovering.
* All Hotels are members of Leading Hotels of the World.
* Cape Grace Hotel voted best hotel in Africa and Middle East by the
readers of Conde Nast traveler magazine.
INTERIM DIVIDEND ANNOUNCEMENT
On the 8th November 2001, the Board approved an interim dividend Number 64 of
125 cents per share on 155,830,255 shares payable to members registered in the
books of the company at the close of business on 23rd November 2001. The
Transfer Books and Register of Members will be closed from 24th November 2001
to 2nd December 2001. Dividend cheques will be mailed to shareholders on or
about 3rd December 2001. 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
8 November 2001
CONSOLIDATED INCOME STATEMENT
For the six months ended 30 September 2001
INFLATION ADJUSTED HISTORICAL COST
Unaudited Unaudited Unaudited Unaudited
(all amounts in millions of dollars) 6 months 6 months 6 months 6 months
to to to to
30 Sept 30 Sept 30 Sept 30 Sept
2001 2000 2001 2000
Turnover 8,876 8,474 7,275 4,084
Cost of sales (6,844) (6,805) (5,238) (2,997)
Gross Profit 2,032 1,669 2,037 1,087
Operating expenses (2,424) (2,375) (1,730) (952)
Other income 322 466 249 228
Operating (loss)/profit (70) (240) 556 363
Net interest (207) (676) (163) (323)
Exchange gains 1,934 1,251 1,597 623
Share of result of associate 450 72 433 83
Net monetary loss (990) (374) - -
Profit before taxation 1,117 33 2,423 746
Taxation (575) (282) (321) (172)
Profit/(loss) after taxation 542 (249) 2,102 574
Minority interest (136) (15) (68) (49)
Net profit/(loss) attributable to 406 (264) 2,034 525
shareholders
Basic earnings per share (cents) 260 (173) 1,305 343
IIMR Headline earnings per share 384 (19) 1,317 354
(cents)
CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
For the six months ended 30 September 2001
Net profit/(loss) for the year 406 (264) 2,034 525
attributable to shareholders
Net gains not recognised in the
income statement
- Surplus on revaluation of 539 132 365 66
investments
- Capital gains deferred tax (32) 37 (72) (1)
Total recognised gains and losses 913 (95) 2,327 590
CONSOLIDATED BALANCE SHEET
At 30 September 2001
INFLATION ADJUSTED HISTORICAL COST
Unaudited Audited Unaudited Audited
at at at at
30 Sept 31 March 30 Sept 31 March
2001 2001 2001 2001
ASSETS
Non-current assets 8,707 8,265 4,885 3,393
Current assets 8,759 7,916 8,351 5,125
Total assets 17,466 16,181 13,236 8,518
EQUITY AND LIABILITIES
Capital and reserves 9,507 8,684 6,526 4,211
Minority interest 294 229 84 67
Non-current 5,102 5,094 4,063 2,802
liabilities
Current liabilities 2,563 2,174 2,563 1,438
Total equity and 17,466 16,181 13,236 8,518
liabilities
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended 30 September 2001
INFLATION ADJUSTED -Unaudited
Share Share Non- Retained Total
Capital Premium Distributable Earnings and
Reserves Shareholders
for dividend
Balance at 116 7,298 1,411 (143) 8,682
1 April 2001
Net gains not
recognised in
income statement
-Currency - - 205 - 205
translation
difference
for Cape
Grace Hotel
-Increase - - - 507 507
in valuation
of quoted
investments
Share options 1 56 - - 57
exercised
Net profit - - - 406 406
Dividend - - - (350) (350)
for 2001 - final
Balance at 30 117 7,354 1,616 420 9,507
September 2001
Balance at 116 7,243 1,222 (57) 8,524
1 April 2000
Net gains not
recognised
in income
statement
-Currency - - 24 - 24
translation
difference
for Cape
Grace Hotel
-Increase in - - - 169 169
valuation of
quoted investments
Share options - 15 - - 15
exercised
Net loss - - - (264) (264)
Dividend - - - (360) (360)
for 2000 - final
Balance at 30 116 7,258 1,246 (512) 8,108
September 2000
HISTORICAL COST -Unaudited
Share Share Non- Retained Total
Capital Premium distributable Earnings and
Reserves Shareholders
for dividend
Balance at 15 928 262 3,006 4,211
1 April 2001
Net gains not
recognised in income
statement
-Currency - - 170 - 170
translation
difference
for Cape
Grace Hotel
-Increase - - - 293 293
in valuation
of quoted
investments
Share options - 50 - - 50
exercised
Net profit - - - 2,034 2,034
Dividend - - - (232) (232)
for 2001 - final
15 978 432 5,101 6,526
Balance at
30 September 2001
Balance at 15 896 145 1,870 2,926
1 April 2000
Net gains not
recognised
in income statement
-Currency - - 13 - 13
translation
difference
for Cape
Grace Hotel
-Decrease - - - 65 65
in valuation
of quoted
investments
Share - 8 - - 8
options
exercised
Net profit - - - 525 525
Dividend - - - (153) (153)
for 2000 - final
15 904 158 2,307 3,384
Balance at
30 September 2000
CONSOLIDATED CASH FLOW STATEMENT
For the six months ended 30 September 2001
INFLATION ADJUSTED HISTORICAL COST
Unaudited Unaudited Unaudited Unaudited
6 months to 6 months to 6 months to 6 months to
30 Sept 30 Sept 30 Sept 30 Sept
2001 2000 2001 2000
Cash flows from
operating activities
Profit before 1,117 33 2,423 746
taxation
Adjustment for:
Non-operating cash (1,757) (567) (1,460) (300)
flow
Non-cash items 120 494 (289) (17)
Operating cash flow (520) (40) 674 429
before working
capital changes
(Used in)/generated (612) 106 (428) (76)
from working capital changes
Operating cash flow (1,132) 66 246 353
Income tax paid (142) (146) (34) (18)
Net cash (used in)/ (1,274) (80) 212 335
generated from
operating activities
Net cash generated 468 377 (246) (50)
from/(used in)
investing activities
Net cash (used in)/ (1,242) (1,507) 51 (371)
generated from
financing activities
Net effect of
exchange rate changes
on cash and cash 1,934 1,251 1,596 623
equivalents
Net (decrease)/ (114) 41 1,613 537
increase in cash
and cash equivalents
Cash and cash 5,103 4,584 3,376 1,947
equivalents at 31 March 2001
Cash and cash 4,989 4,625 4,989 2,484
equivalents at
30 September 2001
SUPLEMENTARY INFORMATION
For the six months ended 30 September 2001
Unaudited Unaudited Unaudited Unaudited
6 months to 6 months to 6 months to 6 months to
30 Sept 2001 30 Sept 2000 30 Sept 2001 30 Sept 2000
Capital 201 222 208 119
expenditure
Depreciation 235 324 98 59
Share of profit of associate
Share of profit of Kingdom Financial Holdings 421 72 404 83
Share of loss of Meikles Financial Services 29 - 29 -
450 72 433 83
On 1 August 2001 the Group transferred its credit operations and the financing
thereof to a company trading as Meikles Financial Services. On the same date
Kingdom Financial Holdings acquired a majority share holding of 51% in this
company through a fresh issue of shares.
Accounting policies
The accounting policies are the same as those used in preparing the 31st March
2001 Annual Financial Statements.
Segment information
INFLATION ADJUSTED HISTORICAL COST
Unaudited Unaudited Unaudited Unaudited
6 months to 6 months to 6 months to 6 months to
30 Sept 2001 30 Sept 2000 30 Sept 2001 30 Sept 2000
By industry segment:
Turnover
Hotel 693 623 573 303
Supermarkets 6,820 6,526 5,573 3,145
Retail 1,363 1,325 1,129 636
Corporate and other - - - -
8,876 8,474 7,275 4,084
Operating profit
Hotel (192) (247) 44 4
Supermarkets 101 160 375 219
Retail 83* 2 188* 154
Corporate and other (33) (155) (22) (14)
(41)* (240) 585* 363
Total assets
Hotel 4,464 3,643 3,229 1,745
Supermarkets 3,472 2,683 2,323 1,337
Retail 2,922 3,152 2,133 1,470
Corporate and other 6,608 6,311 5,551 2,416
17,466 15,789 13,236 6,968
* For comparability includes share of profit of Meikles Financial Services
amounting to $29 million.
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