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Meikles Ld (MIK)

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Monday 11 June, 2012

Meikles Ld

Abridged Audited Financial Results for the y/e ...


MEIKLES LIMITED

ABRIDGED AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED 31 MARCH 2012

CHAIRMAN'S STATEMENT

GROUP REVIEW

Shareholders were advised in November 2011 that the Group made a loss in the
first six months of the year under review of $5 million after taxation. The
results of the second six months have reduced this loss to $3.4 million for the
year as a whole.

Your board decided that the results for the year be determined on a very
conservative basis with full provision for all known and anticipated costs that
may have an impact on the Group financials. Most of these expenses were
incurred in the second half of the year and they include compensation for loss
of office, legal and professional fees, a write off of certain receivables and
advances, and the impairment of property, plant and equipment. Certain
provisions have been provided deliberately on a worse case basis and there may
well be some recovery in the future. The sum of these exceptional expenses
amounted to $6.3 million.

Regrettably the Group's agricultural division suffered from a severe frost last
winter and an unusual adverse weather pattern in the summer. Losses that arose
and were accounted for in the second half of the year as a direct result of the
adverse weather amounted to $2.9 million in direct revenue and $2.3 million
loss of profit.

The first half of the year saw senior management changes at both Group level
and in certain of the operating companies. These changes did destabilise our
operations when they occurred, but new structures have since been put in place.
Furthermore, the Group has had to contend with stock write-offs and reduced
margins.

Finance costs were $4.3 million and $4.2 million in the first half and second
half of the year respectively. These sums have been significant in their impact
on Group performance, for the year under review.

The Group's successes have been substantial. Management is committed to the
task of improving ongoing divisional performance, and the second half of the
year has resulted in an improvement, but efforts continue to progress
performance with urgency.

The Pick n Pay investment in TM Supermarkets was finally consummated, although
very late in the year.

The Group's indigenisation status has been established, making it more
attractive to foreign investors as we pursue future growth projects. These
opportunities will be pursued together with Mentor and with other potential
investors.

Group borrowings, net of the additional Pick n Pay investment, did increase,
but these were largely incurred by the agricultural division where a
substantial expansion project is underway.

Your board has developed a sound policy for Group funding:

  * The Group will no longer use short-term local borrowings to fund medium
    term expansion projects. Term funding, shareholder funding, or minority
    shareholder funding, will be sought for these projects.
   
  * Funding for partly owned subsidiaries or associates will only be provided
    in proportion to the Group's percentage shareholding, and will be provided
    with the co-operation and participation of other shareholders in these
    companies.
   
  * The Group will continue to fund its investment in Retail Store debtors from
    borrowings or from the sale of the debtors book to a third party.
   
  * The Group will retain minimal and inexpensive short-term borrowings from
    local banking institutions.
   
Progress on the implementation of this policy is well advanced:

  * The two Zimbabwe based hotels have arranged term funding from external
    sources at favourable rates to fund renovations, which are now in progress.
   
  * The Retail Store debtors are now funded on a dedicated basis. Interest
    received from debtors will exceed the cost of funding.
   
  * Efforts are in progress to raise dedicated funding, either term or
    shareholder or a combination of both, to fund Tanganda's expansion and to
    eliminate excess short-term borrowings. This funding is expected to be in
    place by September 2012. Substantial interest in Tanganda is already
    evident.
   
The Group is in negotiation with various financiers regarding the injection of
significant funding. In addition, the discussions with RBZ are continuing for
the freeing of funds held on deposit. These initiatives will retire all Group
borrowings other than those identified above, will leave substantial credit
balances with the Group's bankers, and will provide funding for expansion
opportunities.

The full implementation of this financial policy will result in a reduction in
finance costs as well as securing a sound balance sheet structure for the
Group. These factors, together with the improving performance in the divisions,
and further profits from the region, will enable the resumption of dividend
payments to Group shareholders.

Subject to regulatory approvals, the Group has a potential project that may
commence shortly. The sum involved amounts to $150 million. This amount will
not be raised at Holding Company level but will be injected directly into the
project itself. The project is still subject to a confidentiality constraint
and shareholders will be updated when appropriate.

Your board is of the opinion that the present market capitalisation of the
Group fails to recognise the Group's performance, prospects for the future and
the underlying asset values. These factors do restrain the Group's ability from
a funding view-point, to take full advantage of opportunities that are on
offer. Your board will assess these implications and will consider strategies
that may be implemented to optimise the future growth of the Group.

Mentor and the Cape Grace

With effect from 1st April 2012, the Group will take up a shareholding in
Mentor Africa Limited (Mentor) and will merge the Cape Grace into Mentor and
the funds which were being held by Mentor on behalf of the Cape Grace will be
converted into equity in Mentor. This transaction conforms with past
communications to shareholders.

The respective assets are being valued and reviewed by appropriate
professionals, and when complete, it is estimated that the Group will have a
35% shareholding in these regional activities.

The transaction will allow the Group to unlock further value in its foreign
investments by providing access to assets, which have greater growth prospects
than the Cape Grace Hotel in isolation. The Cape Grace Hotel is well run and
the Group is satisfied with its performance, but it is a mature asset and its
prospects for growth are limited and less than those of the Mentor assets.

Mentor has a growing and diversified portfolio of investments in South Africa,
including:

  * a joint venture with dnata, the fourth largest air services provider in the
    world with operations at 76 airports in 38 countries and a member of the
    Emirates Group, in Wings Inflight Services, an airline catering business
    which provides inflight catering services to major international airlines
    operating to/from South Africa, including Emirates Airline, British Airways
    (international) and Singapore Airlines, on long term contracts;
   
  * an interest in the market-leading provider in South Africa of energy
    efficient, low wattage, high output, industrial, retail and commercial
    electronic fittings and safety approved retro-fit lighting products; and
   
  * minority interests and new opportunities in the financial services,
    resources and mining sectors.
   
Mentor's deal-flow pipeline is strong with good upside potential. The merger of
these interests will enable the Group to enhance the value of its regional
assets. Group management will now be in a position to focus on growth
opportunities in Zimbabwe and work with Mentor management to grow the regional
investments.

The Board remains confident that the strategic investment in Mentor will
produce significant high growth opportunities, similar to those which the
Meikles Group derived from its previous investment in Rebhold/Mvelaphanda, in
the medium to long term.

SUBSIDIARY REVIEW

Tanganda

A major plantation development program is in progress. On completion Tanganda
will have planted 450 hectares of avocado, 300 hectares of coffee and 700
hectares of macadamia. This project will be completed by March 2014. On
maturity this project will contribute substantially to Tanganda's profits.

Management is focusing on increasing tea yields and quality. There is evidence
that there is a growing demand for tea in the world and Tanganda's tea
prospects remain promising.

Tanganda is enhancing and updating its manufacturing capacity of packeted teas.
There is a growing demand for packeted teas in the region.

The water bottling plant was commissioned during the last quarter of the
financial year and has resulted in increased production of water to 2.1 million
liters (2011: 1.2 million liters). A second water plant is being explored.

The additional investment in all these activities will amount to $15 million.

Hotels

Refurbishment of Meikles Hotel has commenced. The works are expected to be
completed by December 2012. The Victoria Falls Hotel is also being refurbished,
and work will be completed before the UNWTO conference scheduled for August
2013.

The Hospitality division has successfully negotiated a lease agreement to
operate a business style hotel in Lusaka, which is fast becoming a regional hub
for travel. The hotel will be part of a mixed-use retail scheme being developed
close to the airport by one of Africa's leading real estate companies. This
project is expected to be the first of similar hotel projects in appropriate
regional destinations. Shareholders will be updated with more information at
the opportune time.

TM Supermarkets

The capital injection of $13 million through Pick n Pay's increased
shareholding in TM Supermarkets is being utilised in the branch refurbishment.
The Kamfinsa branch which has been reconstructed will be reopened in the last
week of June 2012 as a Pick n Pay store including the Pick n Pay clothing and
liquor outlets. Refurbishment of the Borrowdale branch has started. A total of
6 branches have been earmarked for refurbishment in the new financial year and
will incorporate rebranding of some stores to "Pick n Pay" on completion. These
stores are located in Harare, Bulawayo, Mutare and Gweru. All these initiatives
which are well supported by Pick n Pay will help in restoring TM Supermarkets
to its previous market leadership position.

Thomas Meikle Stores

The stores operate from well-placed locations in most urban centers in
Zimbabwe. Once further evidence of growth in the economy and in the spending
power of the people becomes evident, the stores will be in a position to
provide a variety of merchandise in selected and focused ranges. There has been
a branding adjustment in recent months and the stores will no longer attempt to
operate the full range of departments that they have had in the past.

Merchandise is now being more carefully selected, with a view to securing good
stock turns and controlled investment in stock. The customers will be provided
with competitive values and credit will be granted where appropriate. The
division currently has 44,000 credit customers.

This division still has a remaining legacy issue. Certain merchandise, although
saleable, can only be sold at reduced margins. The quantum of merchandise
affected is greatly reduced, relative to the quantum that the division had to
contend with during the past financial year.

The stores will not immediately return to their full potential, but
improvements, presently underway, are making a difference.

Acknowledgments

The resolution of a number of issues amongst them the granting of the
indigenisation status and the approval for the Pick n Pay investment was
achieved through support from the relevant regulatory authorities to whom our
appreciation is once again extended. The continued support from shareholders
and staff is acknowledged and the anticipated turnaround in the coming year
will be just reward for these stakeholders.

For and on behalf of the Board

JRT Moxon
Chairman
1 June 2012

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME                              
FOR THE YEAR ENDED 31 MARCH 2012                                            
                                                                            
                                                          Audited    Audited
                                                                            
                                                     12 months to  15 months
                                                                          to
                                                    31 March 2012   31 March
                                                                        2011
                                                                            
                                                          US$ 000    US$ 000
                                                                            
CONTINUING OPERATIONS                                                       
                                                                            
Revenue                                                   354,102    330,437
                                                                            
Net operating costs                                     (361,103)  (336,485)
                                                                            
Operating loss                                            (7,001)    (6,048)
                                                                            
Investment revenue                                          2,011      3,593
                                                                            
Finance costs                                             (8,453)    (7,590)
                                                                            
Net exchange gains / ( losses)                              1,183      (229)
                                                                            
Fair value adjustments                                      3,792      1,398
                                                                            
Reinstatement of funds earmarked for future                     -     11,737
investment                                                                  
                                                                            
(Loss) / profit before tax                                (8,468)      2,861
                                                                            
Income tax credit                                           2,544        793
                                                                            
(Loss) / profit for the period from continuing            (5,924)      3,654
operations                                                                  
                                                                            
DISCONTINUED OPERATIONS                                                     
                                                                            
Profit for the period from discontinued operations          2,480      2,474
                                                                            
(LOSS) / PROFIT FOR THE PERIOD                            (3,444)      6,128
                                                                            
Other comprehensive (loss) / income                                         
                                                                            
Exchange differences on translating foreign               (1,992)      1,889
operations                                                                  
                                                                            
Other comprehensive (loss) / income for the period,       (1,992)      1,889
net of tax                                                                  
                                                                            
TOTAL COMPREHENSIVE (LOSS) / PROFIT FOR THE PERIOD        (5,436)      8,017
                                                                            
(Loss) / profit attributable to:                                            
                                                                            
Owners of the parent                                      (3,537)      6,690
                                                                            
Non-controlling interests                                      93      (562)
                                                                            
                                                          (3,444)      6,128
                                                                            
Total comprehensive (loss) /profit attributable to:                         
                                                                            
Owners of the parent                                      (5,529)      8,579
                                                                            
Non-controlling interests                                      93      (562)
                                                                            
                                                          (5,436)      8,017
                                                                            
(Loss) / earnings per share                                                 
                                                                            
Basic (loss) / earnings from continuing and                (1.44)       2.73
discontinued operations (cents per share)                                   
                                                                            
Basic (loss) / earnings from continuing operations         (2.45)       1.72
(cents per share)                                                           

CONSOLIDATED STATEMENT OF FINANCIAL POSITION                                
AS AT 31 MARCH 2012                                                         
                                                                            
                                                          Audited    Audited
                                                                            
                                                    31 March 2012   31 March
                                                                        2011
                                                                            
                                                          US$ 000    US$ 000
                                                                            
ASSETS                                                                      
                                                                            
Non-current assets                                                          
                                                                            
Property, plant and equipment                              86,122     84,280
                                                                            
Investment property                                            43         44
                                                                            
Biological assets                                          11,770      7,661
                                                                            
Other financial assets                                     18,370     16,600
                                                                            
Intangible assets - trademarks                                124        124
                                                                            
Balances with Reserve Bank of Zimbabwe                     38,627     36,825
                                                                            
Deferred tax                                                1,888      2,356
                                                                            
Total non-current assets                                  156,944    147,890
                                                                            
Current assets                                                              
                                                                            
Inventories                                                39,633     40,713
                                                                            
Trade and other receivables                                17,642     16,153
                                                                            
Other financial assets                                      1,085          -
                                                                            
Cash and bank balances                                      8,427      3,286
                                                                            
                                                           66,787     60,152
                                                                            
Assets held for sale                                       37,871     41,440
                                                                            
Total current assets                                      104,658    101,592
                                                                            
Total assets                                              261,602    249,482
                                                                            
EQUITY AND LIABILITIES                                                      
                                                                            
Capital and reserves                                                        
                                                                            
Share capital                                               2,538      2,454
                                                                            
Share premium                                               1,316          -
                                                                            
Non-distributable reserves                                  6,233      2,627
                                                                            
Retained earnings                                         105,750    111,207
                                                                            
Capital and reserves relating to assets                    19,644     18,083
classified as held for sale                                                 
                                                                            
Equity attributable to equity holders of the parent       135,481    134,371
                                                                            
Non-controlling interests                                   8,618        764
                                                                            
Total equity                                              144,099    135,135
                                                                            
Non-current liabilities                                                     
                                                                            
Borrowings                                                  4,786      3,749
                                                                            
Deferred tax                                               12,919     15,996
                                                                            
Total non-current liabilities                              17,705     19,745
                                                                            
Current liabilities                                                         
                                                                            
Trade and other payables                                   38,371     30,493
                                                                            
Borrowings                                                 47,199     49,031
                                                                            
                                                           85,570     79,524
                                                                            
Liabilities relating to assets classified as held          14,228     15,078
for sale                                                                    
                                                                            
Total current liabilities                                  99,798     94,602
                                                                            
                                                                            
                                                                            
Total liabilities                                         117,503    114,347
                                                                            
Total equity and liabilities                              261,602    249,482


CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2012

                                      Share     Share Non-distributable  Retained
                                    capital   premium          reserves  earnings
                                                                                 
                                    US$ 000   US$ 000           US$ 000   US$ 000
                                                                                 
2012                                                                             
                                                                                 
Balance at 1April 2011                2,454         -             2,627   111,207
                                                                                 
Loss for the year                         -         -                 -   (6,017)
                                                                                 
Change in ownership interests             -         -             4,679       728
in a subsidiary without loss                                                     
of control                                                                       
                                                                                 
Other comprehensive loss for              -         -           (1,073)         -
the year                                                                         
                                                                                 
Issue of shares for cash                 84     1,316                 -         -
                                                                                 
Transfer on disinvestment of              -         -                 -     (168)
non controlling interest in a                                                    
subsidiary                                                                       
                                                                                 
Balance at 31 March 2012              2,538     1,316             6,233   105,750
                                                                                 
2011                                                                             
                                                                                 
Balance at 1 January 2010                 -         -           109,984  (21,325)
                                                                                 
Profit for the period                     -         -                 -     4,216
                                                                                 
Transfer within reserves and              -         -         (109,851)   146,859
on disposal of subsidiaries                                                      
                                                                                 
Other comprehensive income for            -         -               856         -
the period                                                                       
                                                                                 
Share capital redenomination          2,454         -           (2,454)         -
                                                                                 
Transfer in respect of assets             -         -             4,092   (4,019)
classified as held for sale                                                      
                                                                                 
Dividend in specie                        -         -                 -  (14,524)
                                                                                 
Balance at 31 March 2011              2,454         -             2,627   111,207



CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2012

                                   Disposal   Attributable         Non    Total
                                      group   to owners of controlling         
                                    capital         parent   interests         
                                        and                                    
                                   reserves                                    
                                                                               
                                    US$ 000        US$ 000     US$ 000  US$ 000
                                                                               
2012                                                                           
                                                                               
Balance at 1April 2011               18,083        134,371         764  135,135
                                                                               
Loss for the year                     2,480        (3,537)          93  (3,444)
                                                                               
Change in ownership interests in          -          5,407       7,593   13,000
a subsidiary without loss of                                                   
control                                                                        
                                                                               
Other comprehensive loss for the      (919)        (1,992)           -  (1,992)
year                                                                           
                                                                               
Issue of shares for cash                  -          1,400           -    1,400
                                                                               
Transfer on disinvestment of non          -          (168)         168        -
controlling interest in a                                                      
subsidiary                                                                     
                                                                               
Balance at 31 March 2012             19,644        135,481       8,618  144,099
                                                                               
2011                                                                           
                                                                               
Balance at 1 January 2010            51,657        140,316       1,326  141,642
                                                                               
Profit for the period                 2,474          6,690       (562)    6,128
                                                                               
Transfer within reserves and on    (37,008)              -           -        -
disposal of subsidiaries                                                       
                                                                               
Other comprehensive income for        1,033          1,889           -    1,889
the period                                                                     
                                                                               
Share capital redenomination              -              -           -        -
                                                                               
Transfer in respect of assets          (73)              -           -        -
classified as held for sale                                                    
                                                                               
Dividend in specie                        -       (14,524)           - (14,524)
                                                                               
Balance at 31 March 2011             18,083        134,371         764  135,135


CONSOLIDATED STATEMENT OF CASH FLOWS                                  
FOR THE YEAR ENDED 31 MARCH 2012                   Audited     Audited
                                                                      
                                              12 months to   15 months
                                                                    to
                                                  31 March    31 March
                                                      2012        2011
                                                                      
Continuing and discontinued operations             US$ 000     US$ 000
                                                                      
Cash flows from operating activities                                  
                                                                      
(Loss) / profit before tax from                    (5,616)       6,638
continuing and discontinued operations                                
                                                                      
Adjustments for:                                                      
                                                                      
- Depreciation and impairment                        4,834       5,388
                                                                      
- Net interest                                       6,371       4,921
                                                                      
- Dividend received                                      -     (1,471)
                                                                      
- Net exchange (gains) / losses                    (1,342)         423
                                                                      
- Loss on disposal of subsidiaries                       -       3,842
                                                                      
- Fair value adjustments                           (3,681)       1,978
                                                                      
- Share of profits of associates                         -       (666)
                                                                      
- (Profit) / loss on disposal of                      (69)         787
property, plant and equipment                                         
                                                                      
- Reinstatement of funds earmarked for                   -    (11,737)
investment                                                            
                                                                      
Operating cash flow before working                     497      10,103
capital changes                                                       
                                                                      
Decrease / (increase) in inventories                 1,196    (23,642)
                                                                      
Increase in trade and other receivables            (3,252)    (71,807)
                                                                      
Increase in trade and other payables                 7,675      56,278
                                                                      
                                                                      
                                                                      
Cash generated from / (used in)                      6,116    (29,068)
operations                                                            
                                                                      
Income taxes paid                                      (9)     (2,019)
                                                                      
Net cash generated from /(used in)                   6,107    (31,087)
operating activities                                                  
                                                                      
Cash flows from investing activities                                  
                                                                      
Payment for property, plant and                    (6,839)    (11,439)
equipment                                                             
                                                                      
Proceeds from disposal of property,                  1,503       1,789
plant and equipment                                                   
                                                                      
Change in ownership interests in a                  13,000           -
subsidiary without loss of control                                    
                                                                      
Net movement in service assets                        (21)        (65)
                                                                      
Dividends received                                       -       1,471
                                                                      
Payment for other investments                        (250)       (152)
                                                                      
Net expenditure on biological assets                 (497)       (206)
                                                                      
Net outflow on disposal of subsidiary                    -    (16,434)
                                                                      
Investment income                                      251         250
                                                                      
Net cash generated from / (used in)                  7,147    (24,786)
investing activities                                                  
                                                                      
Cash flows from financing activities                                  
                                                                      
Net increase in interest bearing                         6      44,017
borrowings                                                            
                                                                      
Proceeds from issue of shares                        1,400           -
                                                                      
Finance costs                                      (8,454)     (7,601)
                                                                      
Net cash (used in) / generated from                (7,048)      36,416
financing activities                                                  
                                                                      
Net increase / (decrease) in cash and                6,206    (19,457)
bank balances                                                         
                                                                      
Cash and bank balances at the beginning              4,785      25,509
of the period                                                         
                                                                      
Net effect of exchange rate changes on                 606       (436)
cash and bank balances                                                
                                                                      
Translation of foreign entities                      (313)       (831)
                                                                      
Cash and bank balances at the end of the            11,284       4,785
period                                                                

NOTES TO THE ABRIDGED FINANCIAL STATEMENTS

1.        Accounting policies                                             
                                                                               
Accounting policies and methods of computation are consistent, in all material 
respects, with those used in the prior period with no significant impact       
arising from new and revised International Financial Reporting Standards       
(IFRSs) applicable for the year ended 31 March 2012. The financial information 
presented has been extracted from IFRS compliant financial statements.         
                                                                               
2.        Profit for the period from discontinued operations                                                                     
                                                                               
In March 2008, a binding put and call option agreement for the sale of the Cape
Grace Hotel to Mentor was entered into between Meikles, Cape Grace Hotel       
Limited (BVI) and its subsidiaries which own the Cape Grace Hotel on the one   
hand, and Mentor on the other. In November 2008, a notice to exercise the      
option for the purchase of Meikles Group's interests in the Cape Grace Group   
was sent from Mentor to Meikles, and receipt thereof was acknowledged by       
Meikles. This resulted in a legally binding agreement for the purchase by      
Mentor of the Cape Grace Hotel. The consummation and implementation of this    
transaction was delayed as a consequence of the litigation initiated by Meikles
against Mentor, which litigation has now been settled and withdrawn. Following 
the settlement and withdrawal of the aforementioned litigation, the sale of    
Meikles Group's interest in the Cape Grace Hotel to Mentor has been concluded  
with effect from 1 April 2012.                                                 
                                                                               
                                                             Audited    Audited
                                                                               
                                                        12 months to  15 months
                                                                             to
                                                       31 March 2012   31 March
                                                                           2011
                                                                               
                                                             US$ 000    US$ 000
                                                                               
Revenue                                                       16,163     21,137
                                                                               
Net interest                                                       -      6,519
                                                                               
Fees and commissions                                               -     18,271
                                                                               
Other gains                                                      619      4,712
                                                                               
Total income                                                  16,782     50,639
                                                                               
Expenses*                                                   (13,930)   (43,017)
                                                                               
Profit before tax                                              2,852      7,622
                                                                               
Income tax                                                     (372)    (1,306)
                                                                               
Profit for the period from discontinued operations             2,480      6,316
                                                                               
Loss on disposal of subsidiaries                                   -    (3,842)
                                                                               
Profit for the period from discontinued operations             2,480      2,474
(attributable to owners of the parent)                                         
                                                                               
Other comprehensive income                                                     
                                                                               
Exchange differences on translating foreign entities           (919)      1,033
                                                                               
Other comprehensive income for the period, net of              (919)      1,033
tax                                                                            
                                                                               
Total comprehensive profit for the period                      1,561      3,507
                                                                               
*The expenses exclude depreciation expense of                                  
US$1,806,054 (2011: US$3,220,794) which has been                               
written back in line with the requirements of IFRS                             
5.                                                                             
                                                                               
The 31 March 2011 comparatives include Kingdom                                 
Financial Holdings Limited and Cotton Printers                                 
(Private) Limited.                                                             
                                                                               
Cash flows from discontinued operations                                        
                                                                               
Net cash flows from operating activities                       (131)    (3,502)
                                                                               
Net cash flows from investing activities                         128        305
                                                                               
Net cash flows from financing activities                         801      (614)
                                                                               
Net cash inflows / (outflows)                                    798    (3,811)
                                                                               
3.        Assets classified as held for sale                                   
                                                                               
                                                          Audited      Audited 
                                                                               
Comprising                                          31 March 2012     31 March 
                                                                          2011 
                                                                               
                                                          US$ 000      US$ 000 
                                                                               
Assets held for sale:                                                          
                                                                               
Cape Grace Hotel group of companies                        37,871       39,977 
                                                                               
Motor vehicles1                                                 -        1,463 
                                                                               
Total assets held for sale                                 37,871       41,440 
                                                                               
Liabilities relating to assets held for sale:                                  
                                                                               
Cape Grace Hotel group of companies                        14,228       15,078 
                                                                               
Total liabilities relating to held for sale                14,228       15,078 
                                                                               
Net assets held for sale                                   23,643       26,362 
                                                                               
Equity relating to assets held for sale:                                       
                                                                               
Cape Grace Hotel group of companies                        19,644       18,083 
                                                                               
Total equity relating to assets classified as held         19,644       18,083 
for sale                                                                       
                                                                               
1The Group disposed of certain motor vehicles to                               
staff effective 1 April 2011.                                                  
                                                                               
4. Segment information                                    Audited      Audited 
                                                                               
                                                     12 months to 15 months to 
Revenue                                             31 March 2012     31 March 
                                                                          2011 
                                                                               
                                                           US$000       US$000 
                                                                               
Continuing operations                                                          
                                                                               
Supermarkets                                              296,403      274,277 
                                                                               
Hotels                                                     15,397       15,893 
                                                                               
Agriculture                                                19,978       22,498 
                                                                               
Stores                                                     24,061       19,610 
                                                                               
Intergroup sales                                          (1,737)      (1,841) 
                                                                               
                                                          354,102      330,437 
                                                                               
Disposal group and discontinued operation                                      
                                                                               
Hotels                                                     16,163       21,137 
                                                                               
                                                           16,163       21,137 
                                                                               
EBITDA                                                                         
                                                                               
Continuing operations                                                          
                                                                               
Supermarkets                                                5,976        2,404 
                                                                               
Hotels                                                      1,425          972 
                                                                               
Agriculture                                               (3,891)        1,171 
                                                                               
Stores                                                      (874)      (1,482) 
                                                                               
Corporate                                                 (5,732)      (7,738) 
                                                                               
                                                          (3,096)      (4,673) 
                                                                               
Disposal group                                                                 
                                                                               
Hotels                                                      2,623        3,509 
                                                                               
                                                            2,623        3,509 
                                                                               
4. Segment information (continued)                        Audited      Audited 
                                                                               
                                                    31 March 2012     31 March 
                                                                          2011 
                                                                               
                                                          US$ 000      US$ 000 
                                                                               
Segment assets                                                                 
                                                                               
Continuing operations                                                          
                                                                               
Supermarkets                                               50,523       43,860 
                                                                               
Agriculture                                                43,004       37,778 
                                                                               
Hotels                                                     29,878       28,216 
                                                                               
Stores                                                     57,872       64,334 
                                                                               
Corporate                                                  42,454       33,855 
                                                                               
                                                          223,731      208,043 
                                                                               
Assets classified as held for sale                                             
                                                                               
Hotels - Cape Grace Hotel                                  37,871       39,977 
                                                                               
Motor vehicles to be disposed to staff                          -        1,463 
                                                                               
                                                           37,871       41,440 
                                                                               
Total assets                                              261,602      249,483 
                                                                               
Segment liabilities                                                            
                                                                               
Continuing operations                                                          
                                                                               
Supermarkets                                               32,520       40,133 
                                                                               
Agriculture                                                19,538       17,160 
                                                                               
Hotels                                                      8,720        7,081 
                                                                               
Stores                                                     45,317       50,234 
                                                                               
Corporate                                                 (2,820)     (15,338) 
                                                                               
                                                          103,275       99,270 
                                                                               
Classified as held for sale                                                    
                                                                               
Hotels - liabilities classified as held for sale           14,228       15,078 
(Cape Grace Hotel)                                                             
                                                                               
                                                           14,228       15,078 
                                                                               
                                                                               
                                                                               
Total liabilities                                         117,503      114,348 
                                                                               
Intercompany balances and transactions have been                               
eliminated from the Corporate figures.                                         
                                                                               
5.      Supplementary information                                              
                                                                               
Presented below are the segment results for the comparable 12                  
month periods ended 31 March.                                                  
                                                                               
                                                          Audited    Unaudited 
                                                                               
                                                    31 March 2012     31 March 
                                                                          2011 
                                                                               
Revenue                                                   US$ 000      US$ 000 
                                                                               
Continuing operations                                                          
                                                                               
Supermarkets                                              296,403      228,947 
                                                                               
Hotels                                                     15,397       13,369 
                                                                               
Agriculture                                                19,978       17,564 
                                                                               
Stores                                                     24,061       17,400 
                                                                               
Intragroup sales                                          (1,737)      (1,841) 
                                                                               
                                                          354,102      275,439 
                                                                               
Disposal group                                                                 
                                                                               
Hotels                                                     16,163       16,581 
                                                                               
                                                           16,163       16,581 
                                                                               
EBITDA                                                                         
                                                                               
Continuing operations                                                          
                                                                               
Supermarkets                                                5,976        3,909 
                                                                               
Hotels                                                      1,425        1,596 
                                                                               
Agriculture                                               (3,891)          502 
                                                                               
Stores                                                      (874)         (15) 
                                                                               
Corporate                                                 (5,732)      (4,978) 
                                                                               
                                                          (3,096)        1,014 
                                                                               
Included in the EBITDA figures above are the                                   
following exceptional expenses:                                                
                                                                               
Compensation for loss of office                           (2,713)        (400) 
                                                                               
Legal and professional fees                               (1,905)      (1,893) 
                                                                               
Write off of other receivables and advances                 (824)            - 
                                                                               
Impairment of property, plant and equipment                 (898)            - 
                                                                               
                                                          (6,340)      (2,293) 
                                                                               
Excluding these items, the EBITDA figures would                                
have been as follows:                                                          
                                                                               
Continuing operations                                                          
                                                                               
Supermarkets                                                7,309        4,119 
                                                                               
Hotels                                                      2,376        1,652 
                                                                               
Agriculture                                               (1,907)          502 
                                                                               
Stores                                                      (379)          197 
                                                                               
Corporate                                                 (4,155)      (3,163) 
                                                                               
                                                            3,244        3,307 
                                                                               
                                                                               
                                                                               
6. Other information                                                           
                                                                               
                                                    31 March 2012     31 March 
                                                                          2011 
                                                                               
                                                          US$ 000      US$ 000 
                                                                               
Continuing operations                                                          
                                                                               
Capital expenditure for the year                            6,560       10,022 
                                                                               
Depreciation and impairment of property, plant and          4,834        4,595 
equipment                                                                      
                                                                               
Borrowings net of cash and cash equivalents                43,558       49,494 
                                                                               
Capital commitments authorised but not yet                 22,814       25,795 
contracted                                                                     
                                                                               
7. Exchange rates                                                              
                                                                               
Statement of financial position rates                                          
                                                                               
South African Rand                                         7.6962       6.8045 
                                                                               
British Pound                                              1.6018         1.61 
                                                                               
Average transaction rates                                                      
                                                                               
South African Rand                                         7.4396       7.2488 
                                                                               
British Pound                                              1.5981       1.5552 
                                                                               
For further information contact Onias Makamba on +263-4-252068/78              
or omakamba@meikleslimited.co.zw