Interim Results

Meikles Africa Ld
21 November 2006





            UNAUDITED RESULTS FOR THE 6 MONTHS TO 30 SEPTEMBER 2006




                SALIENT FEATURES

   References are to historical information

                   
                  Net turnover

       Increased by 1169% to $32 billion


                 Operating profit

       Increased by 1303% to $5 billion


                 Attributable profit

            Increased to $9,9 billion


       Cash generated and funds available

  Funds generated from operations were $3,3 billion
       Funds on hand amount to $11,9 billion


               Interim dividend per share

At $7.00 per share, the dividend is up 1767% on the prior year







COMMENTARY



The results of Meikles Africa Limited for the half year reflect sustained growth
in shareholder value.  Net turnover increased by 1169% to $32 billion.  Although
gross profit margins were slightly lower and employee costs were in line with
inflation, we were successful in holding other operating cost increases to 904%.
Operating profit of $5 billion exceeded the prior period by 1303%, well in
excess of the average inflation for the period of 1096%.



The performance for the second quarter showed significant gains on the first
quarter, particularly in the retail businesses.  The Group continues to address
the important issues of price control, consumer expectations and diminishing
disposable incomes by focusing on market trends and competitive pricing.



These excellent results generated cash from Group operations of $3,3 billion, a
significant improvement on last year.  This, together with other movements in
the period, has resulted in our total cash and cash equivalents at the half year
amounting to nearly $12 billion.



During the half year the Consumer Price Index increased 3,37 times but, since
the official exchange rate to the US dollar increased 2,50 times, this has
limited, in real terms, the revaluation of our foreign assets.  Until such time
as equilibrium between inflation and the exchange rate is achieved these assets,
expressed in Zimbabwe dollars, will continue to be undervalued.  The impact of
this is reflected in the inflation adjusted financial statements when comparing
exchange gains/losses with the comparable period last year.  For that period the
devaluation of the currency was in excess of the movement in the Consumer Price
Index.



This principle also has a major impact on the operating results and translation
of the net assets of the Cape Grace Hotel, reducing the monetary gain in the
income statement.  Furthermore, the effect of restating the cost of the stock
held by the retail divisions and the subsequent under recovery from sales puts
pressure on our ability to maintain profit margins in real terms.



We are delighted that, together with Zimbabwe Sun Hotels, our partners in the
Victoria Falls Hotel, we have negotiated a new twenty-five year lease for the
Hotel in the face of strong international competition.  This enables us to plan
the medium and longer term enhancement of the hotel, thus securing its position
as one of the premier hotels in Africa.



In the last Annual Report we stated that the Company would jointly underwrite
the Kingdom Financial Holdings Limited rights issue.  The issue was a great
success and we have taken the opportunity to increase our stake to 36%.  The
funds from the rights issue have enabled Kingdom to substantially strengthen its
balance sheet and become a more significant player in the financial services
sector.  As a result, Kingdom Bank's shareholder funds, at 30 September, has
strengthened its position as a commercial bank in the country, whilst the
Discount Company of Zimbabwe has also enhanced its standing relative to
competitors.



We are very pleased that the upward trend in the second quarter has continued
strongly into the third quarter.  This augurs well for the rest of the year.



OPERATIONS



TM Supermarkets

•   Net turnover grew by 1221% to $27,6 billion.

•   Operating profit increased by 1344% to $3,7 billion.

•   Seven new units are planned with three of them at an advanced stage of
    implementation.



Department Stores

•   Net turnover is up by 833% to $2,7 billion.

•   Operating profit increased by 1070% to $960 million.

•   Stock turns improved on last year.

•   The new Point of Sale system will enhance stock control and service to
    customers.

•   The Clicks operation has been successfully integrated into the
    Department Store structure.



Hotels

•   Turnover increased by 1090% to $1,7 billion.

•   Operating profit for the division at $357 million was up 1452% on the
    prior year.

•   Occupancy at Victoria Falls Hotel is on an increasing trend.

•   Occupancy at the Cape Grace is showing growth.



Group Investments

•   Exchange gains on foreign funds amounted to $6,8 billion.

•   The Group's share of the results of Kingdom Financial Holdings Limited
    was $318 million compared to $4 million in the prior year.



JOHN MOXON

Chairman







INTERIM DIVIDEND ANNOUNCEMENT



On 16 November 2006 the Board approved an interim dividend Number 74 of $7.00
per share on 163 656 787 shares payable to members registered in the books of
the Company at the close of business on 8 December 2006.  The transfer books and
Register of Members will be closed from 11 December 2006 to 18 December 2006.
Dividend cheques will be mailed to shareholders on or about 18 December 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
16 November 2006







UNAUDITED CONSOLIDATED INCOME STATEMENT
For the 6 months to 30 September 2006


                                                                INFLATION ADJUSTED         HISTORICAL COST
(all amounts in millions of dollars)                     6 months to   6 months to 6 months to 6 months to

                                                                  30            30          30          30
                                                           September     September   September   September
                                                                2006          2005        2006        2005


Revenue                                                       47,229        47,327      32,002       2,522

Operating (loss) / profit                                    (3,378)         (307)       4,965         354
Net monetary gain                                              2,699         6,104           -           -

Operating (loss) / profit after net monetary gain              (679)         5,797       4,965         354

Investment income                                              1,359         1,067         760          61

Finance costs                                                  (589)         (560)       (384)        (29)

Net exchange (loss) / gains                                  (3,709)         3,141       6,828         836

Fair value adjustment on investment property                       -         (302)           -           -

(Decrease) / increase in value of quoted investment            (964)           653         600         116

Net share of result of associates                               (20)         (166)         289          12

Loss on disposal of subsidiaries                                   -         (257)           -         (1)
(Loss) / profit before taxation                              (4,602)         9,373      13,058       1,349


Taxation                                                       (603)       (2,482)     (2,447)       (220)

(Loss) / profit for the year                                 (5,205)         6,891      10,611       1,129
Attributable to:
Equity holders of the parent                                 (5,470)         6,133       9,866       1,073
Minority interest                                                265           758         745          56
                                                             (5,205)         6,891      10,611       1,129

Basic (loss) / earnings per share ($)                        (33.43)         39.61       60.28        6.56

IIMR Headline (loss) / earnings per share ($)                (32.94)         42.31       60.10        6.57





UNAUDITED CONSOLIDATED BALANCE SHEET
At 30 September 2006


                                     INFLATION ADJUSTED                HISTORICAL COST
(all amounts in millions of             At  Audited at              At         Audited
dollars)                                                                            at
                                        30    31 March              30        31 March
                                 September        2006       September            2006
                                      2006                        2006

ASSETS

Property, plant & equipment         14,877      17,602           4,605           2,181
Investments-quoted                   4,489       4,210           2,269             773
Investments-unquoted                 3,956       5,205           3,798           1,469
Other non-current assets             3,654       3,654               2               2
Current assets                      24,696      29,221          23,761           8,193
Total assets                        51,672      59,892          34,435          12,618


EQUITY AND LIABILITIES
Attributable to equity
holders of the parent
                                    30,988      36,045          17,510           6,715
Minority interest                    1,486       1,434             893             246
Deferred taxation                    4,864       5,408           1,698             615
Other non-current                    2,028       3,487           2,028           1,034
liabilities
Current liabilities                 12,306      13,518          12,306           4,008
Total equity and liabilities        51,672      59,892          34,435          12,618







UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the 6 months to 30 September 2006


                                                               INFLATION ADJUSTED                        HISTORICAL COST
(all amounts in millions of dollars)                  6 months to     6 months to             6 months to    6 months to
                                                     30 September    30 September            30 September   30 September
                                                             2006            2005                    2006           2005
                                                                                                        
(Loss) / profit for the period                            (5,470)           6,133                   9,866          1,073
Cape Grace Hotel - translation of                          
foreign entity                                              1,125           2,096                   1,256            179
Share of reserves of associate                                  -              23                       -            (2)
Share of prior year adjustment of                       
associates' reserves                                            -            (84)                       -              -
Dividend - prior year final                                 (712)           (839)                   (327)           (25)
Attributable to equity holders of parent                  (5,057)           7,329                  10,795          1,225
Minorities                                                     52             289                     647             14
Shareholders' equity at the beginning of                 
the year                                                   37,479          26,495                   6,961            429
Shareholders' equity at the end of the 6               
months period                                              32,474          34,113                  18,403          1,668






UNAUDITED CONSOLIDATED CASH FLOW STATEMENT
For the 6 months to 30 September 2006


                                                                 INFLATION ADJUSTED              HISTORICAL COST
(all amounts in millions of dollars)                      6 months to      6 months    6 months to   6 months to
                                                         30 September  30 September   30 September  30 September
                                                                 2006          2005           2006          2005


Cash flows from operating activities

(Loss) / profit before taxation                                (4,602)        9,373         13,058       1,349
Adjustments for:
  Non-operating cash flow                                        3,027      (3,482)        (7,239)       (880)
  Non-cash items                                                 5,300          258          (776)       (107)

Operating cash flow before working capital changes               3,725        6,149          5,043         362
Generated from / (used in) working capital changes                 383      (6,162)        (1,490)       (342)
Cash generated from operations                                   4,108         (13)          3,553          20
Taxation paid                                                  (1,308)      (1,914)          (243)        (21)
Net cash generated from / (used in) operating                   
activities                                                       2,800      (1,927)          3,310         (1)


Net cash used in investing activities                            (744)      (2,722)          (594)        (93)

Net cash (used in) / generated from financing                
activities                                                     (2,260)        1,868          (335)          37

Net (decrease) / increase in cash and cash equivalents           (204)      (2,781)          2,381        (57)

Cash and cash equivalents at the beginning of the year          14,547       12,859          4,313         376

Net effect of exchange rate changes on cash and cash           
equivalents                                                    (3,709)        3,141          6,828         836
Translation of foreign entity                                    1,286      (1,597)        (1,602)       (105)

Cash and cash equivalents at the end of the 6 months           
period                                                          11,920       11,622         11,920       1,050




UNAUDITED SEGMENT INFORMATION
                                                                               

                                             INFLATION ADJUSTED                HISTORICAL COST

(all amounts in millions of         6 months to     6 months to      6 months to   6 months to
dollars)                           30 September    30 September     30 September  30 September
                                           2006            2005             2006          2005


Revenue
Supermarkets                             40,554          39,075           27,573         2,087
Retail                                    4,100           5,763            2,716           291
Hotels                                    2,575           2,489            1,713           144
                                         47,229          47,327           32,002         2,522
Operating profit / (loss) after
monetary adjustment
Supermarkets                                636           2,222            3,653           253
Retail                                    (468)           2,237              960
                                                                                            82
Hotels                                    (324)           (289)              357            23
Corporate                                 (523)           1,627              (5)           (4)
                                          (679)           5,797            4,965           354
Segment assets
Supermarkets                             15,757          14,981           12,539         1,007
Retail                                    7,251           9,126            3,603           360
Hotels                                   13,451          15,396            6,222           714
Corporate                                15,213          16,293           12,071         1,164
                                         51,672          55,796           34,435         3,245




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



Capital expenditure                                       851       887           575         38

Capital commitments authorised but not yet          
contracted for                                          2,082       851         2,082         76

Depreciation                                              793       167           113          7

Market value of investments
       - Associate - Kingdom Financial Holdings         9,474     3,370         9,474        300
Limited
       - Investment - Mvelaphanda Group                 1,259     1,616         1,259        144

Interest bearing borrowings                             3,093     5,529         3,093        492




Accounting policies



Accounting policies are consistent with those used in the previous year.



Note to inflation adjusted financial statements



The consumer price indices used to restate the financial statements at 30
September 2006 are as follows:

30 September 2005                                                 211,751.3
31 March 2006                                                     705,209.4
30 September 2006                                               2,378,624.9



For further information contact:



Zimbabwe                               Bryan Thorn [phone]/78


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