Interim Results
Meikles Africa Ld
19 November 2002
Unaudited Interim Results for the Six Months ended 30th September 2002
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 2002.
Financial Highlights - Inflation Adjusted
* Turnover of $28.6 billion, (2001 - $21.3 billion)
* Operating profit of $1.2 billion (2001 loss of $169 million)
* Exchange gains of $5.7 billion, (2001 - $4.6 billion)
* Attributable profit of $1.8 billion, (2001 - $972 million)
* Headline EPS - $13.38 (2001 - $9.21)
* Dividend - $4.50
Financial Highlights - Historical Cost
* Turnover of $22.2 billion, (2001 - $7.3 billion)
* Operating profit of $2.6 billion, (2001 - $556 million)
* Exchange gains of $4.4 billion, (2001 - $1.6 billion)
* Attributable profit $5.9 billion, (2001 - $2 billion)
* Headline EPS - $38.02 (2001 - $13.17)
* Dividend - $4.50
RESULTS REVIEW
Historical Cost
The first half has seen real turnover growth, which improved as the period
progressed. At 30th September 2002, turnover had grown by 205% compared to
official inflation figures for the six months of 126%.
Both retail divisions have shown volume increases as well as inflation driven
sales growth. The acquisition of the other 50% of the Cape Grace and an
unusually good low season performance by the hotel together with the inclusion
of Medix Pharmacies results has also contributed to the real increase in both
turnover and profits. It should be noted that the second quarter sales growth
for the Group of 221% compares favourably to the first quarter of 180%
demonstrating a strong upward trend in sales. Gross margins continue to improve
whilst operating expenses have been controlled resulting in a 369% growth in
operating profit to $2.6 billion.
After net interest expense of $495 million, exchange gains of $4.4 billion and
our share of Kingdom's profit of $361 million, the group increased profit before
tax from $2.4 billion to $6.9 billion. At the attributable level, headline
earnings per share increased from $13.17 to $38.02.
Inflation Adjusted
The inflation adjusted accounts confirm the trends in the historical cost
information.
OPERATIONS
TM Supermarkets
* The newer branches including the flagship development at Borrowdale are
exceeding expectations.
* Supplies of basic commodities continue to cause concern.
* Volume growth indicates improved market share.
* Turnover growth expected to exceed inflation in the second half.
Retail
* Consumer shift from cash to assets has benefited division.
* Introduction of credit into Medix to benefit consumer.
* Plans to expand Medix progressing.
* Strong turnover growth expected to continue.
Hotels
* Cape Grace Hotel achieves record occupancies and highest room rates in
Cape Town.
* Zimbabwe hotels occupancy levels affected by lower tourist arrivals and local
business environment.
* Joint marketing with Cape Grace will enhance a local recovery programme.
* Cape Grace anticipates good results moving into the Cape high season.
INVESTMENT IN KINGDOM FINANCIAL HOLDINGS LIMITED
* Meikles supporting Kingdom's Rights Issue investing a further $380 million.
* Future profitability to be driven by regional expansion and better local
capitalisation as a result of the Rights Issue.
INTERIM DIVIDEND ANNOUNCEMENT
On the 14th November 2002, the Board approved an interim dividend Number 66 of
$4.50 per share on 157 024 305 shares payable to members registered in the books
of the company at the close of business on 6th December 2002. The Transfer Books
and Register of Members will be closed from 6th December 2002 to 15th December
2002. Dividend cheques will be mailed to shareholders on or about 16th December
2002. 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 14 November 2002
Enquiries:
Meikles Africa +263 4 252068
Andrew Lane-Mitchell, Company Secretary
College Hill +44 20 7457 2020
Corinna Dorward
CONSOLIDATED INCOME STATEMENT
For the six months ended 30 September 2002
(all amounts in millions of Zimbabwe dollars)
INFLATION ADJUSTED HISTORICAL COST
Unaudited Unaudited Unaudited Unaudited
6 months to 6 months to 6 months to 6 months to
30 Sept 2002 30 Sept 2001 30 Sept 2002 30 Sept 2001
Turnover 28,613 21,293 22,158 7,275
Cost of sales (21,111) (16,420) (15,112) (5,238)
Gross Profit 7,502 4,873 7,046 2,037
Operating expenses (6,527) (5,815) (4,627) (1,730)
Other income 260 773 191 249
Operating profit/(loss) 1,235 (169) 2,610 556
Net interest (614) (497) (495) (162)
Exchange gains 5,722 4,638 4,422 1,596
Share of result of associate 232 1,080 361 433
Net monetary loss (2,857) (2,374) - -
Profit before taxation 3,718 2,678 6,898 2,423
Taxation (1,576) (1,379) (688) (321)
Profit after taxation 2,142 1,299 6,210 2,102
Minority interest (363) (327) (292) (68)
Net profit attributable to 1,779 972 5,918 2,034
shareholders
Basic earnings per share (cents) 1,133 625 3,769 1,305
IIMR Headline earnings per 1,338 921 3,802 1,317
share (cents)
CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
For the six months ended 30 September 2002
Net profit for the year attributable
to shareholders 1,779 972 5,918 2,034
Net gains not recognised in the income statement
- Increase in value of quoted investments 458 1,293 999 365
- Capital gains deferred tax (198) (76) (198) (72)
Total recognised gains 2,039 2,189 6,719 2,327
CONSOLIDATED BALANCE SHEET
At 30 September 2002
(all amounts in millions of Zimbabwe dollars)
INFLATION ADJUSTED HISTORICAL COST
Unaudited Audited Unaudited Audited
at at at at
30 Sept 2002 31 March 2002 30 Sept 2002 31 March 2002
ASSETS
Non-current assets 28,569 25,219 15,988 8,903
Current assets 23,600 20,205 21,428 11,523
Total assets 52,169 45,424 37,416 20,426
EQUITY AND LIABILITIES
Capital and reserves 29,715 25,543 18,954 10,430
Minority interest 932 775 261 159
Non-current liabilities 13,757 11,554 10,436 5,395
Current liabilities 7,765 7,552 7,765 4,442
Total equity and liabilities 52,169 45,424 37,416 20,426
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended 30 September 2002
(all amounts in millions of Zimbabwe dollars)
INFLATION ADJUSTED -Unaudited
Share Share Non- Retained Total
Capital Premium Distributable Earnings and
Reserves Shareholders
for dividend
Balance at 1 April 2002 280 17,664 4,225 3,375 25,544
Net gains not recognised in income statement
- Increase in valuation of quoted investments - - - 260 260
Currency translation difference - - 2,936 - 2,936
Share options exercised - 34 - - 34
Net profit - - - 1,779 1,779
Dividend for 2002 - final - - - (838) (838)
Balance at 30 September 2002 280 17,698 7,161 4,576 29,715
Balance at 1 April 2001 278 17,508 3,385 (343) 20,828
Net gains not recognised in income statement
- Increase in valuation of quoted investments - - - 1,217 1,217
Currency translation difference - - 491 - 491
Share options exercised 2 134 - - 136
Net loss - - - 972 972
Dividend for 2001 - final - - - (840) (840)
Balance at 30 September 2001 280 17,642 3,876 1,006 22,804
HISTORICAL COST - Unaudited
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 gains not recognised in income statement
-Increase in valuation of quoted investments - - - 801 801
Currency translation difference - - 2,270 - 2,270
Share options exercised - 27 - - 27
Net profit - - - 5,918 5,918
Dividend for 2002 - final - - - (492) (492)
Balance at 30 September 2002 16 1,018 2,897 15,023 18,954
Balance at 1 April 2001 15 928 262 3,006 4,211
Net gains not recognised in income statement
-Increase in valuation of quoted investments - - - 293 293
Currency translation difference - - 170 - 170
Share options exercised - 50 - - 50
Net profit - - - 2,034 2,034
Dividend for 2001 - final - - - (232) (232)
Balance at 30 September 2001 15 978 432 5,101 6,526
CONSOLIDATED CASH FLOW STATEMENT
For the six months ended 30 September 2002
(all amounts in millions of Zimbabwe dollars)
INFLATION ADJUSTED HISTORICAL COST
Unaudited Unaudited Unaudited Unaudited
6 months to 6 months to 6 months to 6 months to
30 Sept 2002 30 Sept 2001 30 Sept 2002 30 Sept 2001
Cash flows from operating activities
Profit before taxation 3,718 2,678 6,898 2,423
Adjustment for:
Non-operating cash flow (5,799) (4,215) (4,035) (1,460)
Non-cash items 1,280 288 1,432 (289)
Operating cash flow before working capital (801) (1,249) 4,295 674
changes
Generated/(used in) from working capital 2,164 (1,468) (892) (428)
changes
Operating cash flow 1,363 (2,717) 3,403 246
Income tax paid (493) (341) (101) (34)
Net cash generated/(used in) from operating 870 (3,058) 3,302 212
activities
Net cash (used in)/generated from investing (255) 1,123 (255) (246)
activities
Net cash (used in)/generated from financing (5,665) (2,980) (1,226) 51
activities
Net effect of exchange rate changes
on cash and cash equivalents 6,521 4,640 4,422 1,596
Net increase/(decrease) in cash and cash 1,471 (275) 6,243 1,613
equivalents
Cash and cash equivalents at 31 March 2002 11,589 12,242 6,817 3,376
Cash and cash equivalents at 30 September 2002 13,060 11,967 13,060 4,989
SUPLEMENTARY INFORMATION
For the six months ended 30 September 2002
(all amounts in millions of Zimbabwe dollars)
INFLATION ADJUSTED HISTORICAL COST
Unaudited Unaudited Unaudited Unaudited
6 months to 6 months to 6 months to 6 months to
30 Sept 2002 30 Sept 2001 30 Sept 2002 30 Sept 2001
Capital expenditure 781 482 632 208
Depreciation 439 564 232 98
Accounting policies
The accounting policies are the same as those used in preparing the 31st March
2002 Annual Financial Statements.
Note to inflation adjusted financial statements
The consumer price indices used to restate the financial statements at 30
September 2002 are as follows:
30 September 2001 982.8
31 March 2002 1,386.9
30 September 2002 2,357.7
Segment information
(all amounts in millions of Zimbabwe dollars)
Turnover
Hotel 3,078 1,662 2,430 573
Supermarkets 20,574 16,361 15,897 5,573
Retail 4,961 3,270 3,831 1,129
Corporate and other - - - -
28,613 21,293 22,158 7,275
Operating profit
Hotel 420 (461) 447 44
Supermarkets 442 241 1,460 375
Retail 839 56 668 159
Corporate and other (466) (5) 35 (22)
1,235 (169) 2,610 556
Total assets
Hotel 19,527 10,709 13,882 3,229
Supermarkets 10,622 8,329 6,624 2,323
Retail 9,600 7,010 6,476 2,133
Corporate and other 12,420 15,852 10,434 5,551
52,169 41,900 37,416 13,236
For further information contact either:
Zimbabwe Christopher Parvin +263-4-252068-78
Roy Franklin +263-4-252068-78
United Kingdom Corinna Dorward +44-20-7-4572020
Directors JRT Moxon (Chairman), ACL Parvin (Chief Executive)
DE Stephens, MA Masunda, MV Cameron, M Wilson
END
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