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Meikles Africa Ld (MIK)

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Monday 15 May, 2000

Meikles Africa Ld

Final Results - Year Ended 31 March 2000

Meikles Africa Ld
15 May 2000

                    MEIKLES AFRICA LIMITED

    Preliminary results for the year ended 31st March 2000
Meikles   Africa  Limited  ('Meikles  Africa'),  the  Southern
African  based  hotel and retail group, which floated  on  the
Zimbabwe and London Stock Exchanges in 1996, announces a  good
operating performance for the year ended 31st March 2000.

*    Turnover of Z$661m up by 59%

*    Operating income of Z$790m up 53%

*    Attributable earnings show impact of interest and non-
     cash items including a Z$9m exchange loss compared with
     exchange gains of Z$974m last year and a decline in the
     company's quoted investments

*    IIMR Headline earnings per share at 162 cents (1999: 992

*    Operating cash flow per share of 607 cents, up from 460

Chris Parvin, Chief Executive, commented:

'These   are   steady  operating  results,  in   a   difficult
environment.   We are confident that the businesses  are  well
positioned  for  the challenging year ahead. We  are  actively
looking  to  extend  our  hotel expertise  regionally  and  we
continue to pursue local growth opportunities.'
                                                   15 May 2000


Meikles Africa                 Tel: + 263 4 252 068
Chris Parvin, Chief Executive
Charles Golding, Finance Director

College Hill                   Tel: +20 7457 2020
Mark Garraway
Corinna Dorward


Dear Shareholders,

It  is  particularly  pleasing to report that  the  Group  has
produced  good operating results for the year ending 31  March
2000  and  the Board is recommending the payment  of  a  final
dividend of $1.00 per share making a total of $1.70 per  share
for  the  year(1999 : $1.40), reflecting the strong  operating
performance and resilience of the Group.

Turnover has grown by 59% to $6,661 million which is ahead  of
the official inflation rate of 51%.  Operating profit improved
by 53% to $790 million from $517 million.  At the attributable
level, headline earnings show the impact of two major non-cash
items a small exchange loss of $9 million (1999 Exchange  gain
:  $974  million) and a decline in the value  of  the  Group's
quoted  investments  of  $136 million (1999  increase  :  $328
million).   Furthermore  high  local  interest  rates  and  an
increased level of borrowings resulted in net interest charges
of  $294 million (1999 : $90 million).  The Group continues to
review  its  financing options. The combined effect  of  these
items resulted in a fall in headline earnings per share to 162
cents (1999 earnings per share : 992 cents) although operating
cashflow earnings per share show good growth from 460 cents to
629 cents.

The  Group  will  be  adopting hyper inflation  accounting  to
comply  with  International Accounting Standards and  Zimbabwe
Stock  Exchange  requirements for  the  forthcoming  financial

Supermarkets  contributed 72% to Group turnover  and  remained
the  largest  profit earner in the Group.   Turnover  was  64%
greater  than  last year at Z$4,812 million,  as  compared  to
$2,937   million  last  year,  well  in  excess  of  inflation
indicating  real  growth,  and the  relative  insulation  that
efficient  food  retailing  provides  from  economic   cycles.
During  the course of the year one new supermarket was  opened
at  Mukoba in Gweru, although work on a further five is at  an
advanced stage.  The range of own brand products was increased
to  72  lines  and now constitutes over 5% of total  turnover.
Tighter  stock loss control resulted in significantly improved
margins  in  all  sections.  TM has maintained its  reputation
with  the  price  conscious shopper and has  increased  market
share in a static market.

The  Retail Division which includes the Department Stores  and
Clicks  and  Diskom chain, finished the year with  an  overall
turnover  gain  of 48% to Z$1,197 million from  Z$806  million
last  year  despite poor trading in December.  At an operating
profit  level the division contributed Z$237 million  up  from
Z$127 million last year.  Much of the improvement has been due
to   our   ability  to  offer  credit,  and  to  manage   this
successfully, with no deterioration in quality of our debtors.
In  the  latter  half of the year the turnover  trend  in  the
higher  priced items declined particularly over the  Christmas
period  where sales of major household items were  lower  than
anticipated. The result has been that stocks were higher  than
planned  at the year end.  Measures have been taken to further
improve the management of working capital.

The  Clicks and Diskom Chain continues to expand and there are
now  9  Clicks  and 4 Diskom stores.  Clicks  and  Diskom  now
contribute  $235 million to Group revenues showing  a  healthy
growth  of  67% compared to last year.  The Flame  Diner  fast
food  chain  was sold during the year at a profit and  certain
Black   Steer/Bulldogs  Pubs  have  been  sold,  while   those
remaining  have been absorbed in to the respective  department

Despite  the  fact that the Hotel Division has  suffered  most
from  the  economic  downturn, I am  pleased  to  report  that
operating  profit  improved from Z$210 million  last  year  to
Z$224  million.  Turnover also improved from Z$450 million  to
Z$651  million this year. Room occupancy declined to 56% (1999
:  59%) at Meikles Hotel, and the Victoria Falls Hotel to  49%
(1999  :  67%). Although revenues year on year  grew  by  only
18.5% and 14.5% respectively this was a creditable performance
in view of the downturn in occupancies.  As nearly all revenue
from  both hotels is priced in US dollars the static  exchange
rate in an inflationary environment reduced margins. Operating
profits  were  only slightly improved compared to  last  year.
The strategy of providing premium priced quality accommodation
has  paid  off particularly at Victoria Falls Hotel where  the
average  room  rate  has to some extent  offset  the  fall  in
occupancy  levels. The Cape Grace made a positive contribution
to divisional results in the latter half of the year.

On  1st October 1999 fifty percent of the Cape Grace Hotel was
acquired at a cost of US$5,3 million paid immediately, with  a
further  US$7,5m  having  been approved  by  Exchange  Control
Authorities for remittance during the forthcoming  year.   The
Cape  Grace  is one of the finest five star luxury  hotels  in
Cape  Town which is reflected in its premium average room rate
of US$220 and a room occupancy rate of 62% over the six months
to date.

We  finalised  negotiations  with Kingdom  Financial  Holdings
Limited,  a  Financial Services group listed on  the  Zimbabwe
Stock  Exchange and on 31st December 1999 subscribed for  74.4
million shares at a cost of Z$266 million.  This gives Meikles
a  25%  stake  in the enlarged share capital of Kingdom.   The
price  was  $3.50  per share with a further  $0.50  per  share
payable  together with interest, dependent on results  in  the
year  to  31st December 2000.  The stake in Kingdom  has  been
acquired with a view to enhancing their development of  retail
banking  services,  and  our participation  will  involve  the
better  utilisation  of  our  company  revenues  such  as  the
Department  Stores debtors book and the distribution  network.
We  are confident that the management team of Kingdom are well
equipped to handle the rapid development of the retail bank.

Meikles  strategy  for  pursuing  local  and  regional  growth
opportunities remains unchanged.  In particular, we intend  to
extend   the   Group's  high  quality  hotel  operations   and
experience  in  the tourism sector to take  advantage  of  the
'tourist circuit' in Southern Africa.

The  Hotel  Division  will continue  to  enhance  the  quality
product  offered to our discerning customer base.  During  the
coming  year,  we  expect  to improve  direct  access  to  the
independent  traveller through traditional  marketing  methods
such  as  Leading Hotels of the World, as well as the  use  of
internet  and  electronic media. We will continue  to  explore
regional  opportunities in the tourism sector and  during  the
course of the year we expect to announce specific investments.

Expansion  of  the supermarket operations in conjunction  with
our  strategic  partner Pick 'n' Pay   will  continue  with  a
further  five outlets planned to open in the near future.   We
will  continue  to  improve  the ambience  of  the  Department
Stores,  and  we  plan  to  open  further  Clicks  and  Diskom

Trading and the environment at the start of the year have been
depressed   and   current   circumstances   make   forecasting
performance  difficult.   However,  Meikles  Africa  is   well
positioned   and  financially  well  equipped  to   meet   the
challenges  of the coming year and the Board views the  future
with confidence.

I  would like to thank my fellow Directors and to congratulate
Management and Staff on a job well done during the past  year.
Godfrey Gomwe resigned as a Director of the Company during the
year   and  I  would  like  to  thank  him  for  his  valuable
contribution whilst he served on the Board and wish  him  well
for the future.



On  12th May 2000, the Board approved a final dividend  number
61  of  100  cents per share on 152,915,305 shares payable  to
members registered in the books of the Company at the close of
business  on Friday, 23rd June 2000.  The Transfer  Books  and
Register of Members will be closed from 26th June to 10th July
2000. The dividends payable to non-resident shareholders  will
be  paid  in  accordance  with Exchange  Control  Regulations.
Shareholders'   withholding  tax  will   be   deducted   where

The  Annual  General Meeting of the Company will  be  held  in
Harare  on 2nd August 2000, details of which will be  provided
in the Annual Report.

By order of the Board

Company Secretary

12 May 2000

For the year ended 31 March 2000

                                          2000         1999
                                          Z$000        Z$000
Turnover                              6,660,524     4,193,467
Cost of Sales                        (4,782,446)   (3,021,749)
Gross Profit                          1,878,078     1,171,718
Other income                          305,275       161,668
Employee costs                        (590,261)     (350,522)
Occupancy costs                       (168,278)     (105,787)
Other operating costs                 (635,146)     (359,783)
Operating profit                      789,668       517,294
Finance (costs)/income                (438,237)     1,211,666
Net Interest                     2    (293,769)   (89,968)
Net exchange (loss)/gains             (8,627)      973,936
(Decrease)/increase  in value of                           
quoted investments                   (135,841)       327,698
Profit before taxation                351,431       1,728,960
Taxation                              (51,692)      (193,440)
Profit after taxation                 299,739       1,535,520
Minority interest                     (76,024)      (37,860)
Net   profit  for  the   year                       
to shareholders                       223,715       1,497,660
Retained   earnings   brought         1,753,639     470,032
Dividends                             (259,942)     (214,053)
Retained   earnings   carried         1,717,412     1,753,639
Earnings  per share  -  basic    3    146           980
IIMR  Headline  earnings  per                       
(cents)                          3    162           992
Operating cash flow per share         607           460
As at 31st March 2000

                                         2000          1999
                                        Z$000         Z$000
Non-current assets                                         
Property,    plant    and           1,190,159       671,311
Investments                           696,344       560,551
Goodwill                              504,938       417,779
Long term debtors                     215,761       166,762
                                    2,607,202     1,816,403
Current assets                                             
Stocks                                789,798       513,622
Debtors and prepayments               604,259       372,071
Cash and cash equivalents           1,947,005     1,962,236
                                    3,341,062     2,847,929
Total assets                        5,948,264     4,664,332
EQUITY AND LIABILITIES                                     
Capital and reserves                                       
Equity capital                         15,291        15,289
Non-distributable                   1,040,724     1,048,368
Retained earnings                   1,717,412     1,753,639
Shareholders for dividend             152,915       152,895
                                    2,926,342     2,970,191
Minority interest                      38,960        19,961
Non-current liabilities                                    
Interest          bearing           1,560,398       574,260
Deferred tax                          208,219       297,574
Other           financial              25,520         7,331
                                    1,794,137       879,165
Current liabilities                                        
Creditors                           1,016,383       672,602
Interest          bearing              48,127        62,705
Other           financial             124,315        59,708
                                    1,188,825       795,015
Total     equity      and           5,948,264     4,664,332

For the year ended 31st March 2000

                                                2000         1999
                                      Notes     Z$000      Z$000
Cash flows from operating activities                             
Operating  cash flow before  working                   
capital changes                        4    894,672    591,240
Net   cash  generated  from  working                   
capital changes                        5    32,887     112,325
Operating cash flow                         927,559    703,565
Income tax paid                             (71,608)   (47,135)
Net  cash  generated from  operating                   
activities                                  855,951    656,430
Cash flows from investing activities                   
Purchase of 50% of joint venture  in                   
Cape Grace Hotel                            (205,225)  -
Purchase of 25% of Kingdom Financial                   
Holdings Limited                            (266,039)  -
Purchase  of  50% joint  venture  in                   
Victoria Falls Hotel                        -          (377,306)
Purchase of investments                     (110)      -
Expenditure on property,  plant  and                   
equipment - expansion                       (81,361)   (48,263)
Expenditure on property,  plant  and                   
equipment - replacement                     (162,766)  (144,847)
Proceeds  from disposal of property,                   
plant and equipment                         14,743     3,924
Dividends received                          48         5,209
Increase in interest-bearing debtors                   
                                            (284,610)  (164,069)
Interest received                           207,637    114,077
Net    cash    used   in   investing        (777,683)  (611,275)
Cash flows from financing activities                   
Proceeds   from   interest   bearing        793,123    496,117
Repayment   of   interest    bearing        (111,433)  (32,312)
Interest paid                               (472,805)  (204,045)
Issue of ordinary shares                    560        -
Dividends    paid     -     Ordinary        (259,922)  (114,671)
                                   -        (43,649)   (18,316)
Net  cash  (used in)/generated  from                   
financing activities                        (94,126)   126,773
Net  effect of exchange rate changes        (9,425)    969,051
on cash and Equivalents
Net  (decrease)/increase in cash and                   
cash equivalents                            (25,283)   1,140,979
Cash  and  cash  equivalents  at  31        1,962,236  821,257
March 1999
Cash acquired with joint venture            10,052     -
Cash  and  cash  equivalents  at  31        1,947,005  1,962,236
March 2000
For the year ended 31 March 2000

                   Share    Share     Non-     Retained   Total
                   capita  premium  distribut  earnings
                     l                able        and
                                    reserves   sharehol
                                               ders for
Balance at 1 April                                               
  - as previously                                           
reported           15,289  894,975   153,393     465,513    1,529,170
  - deferred       -       -         -           (161,115)  (161,115)
  - quoted         -       -         -           219,147    219,147
  - as restated    15,289  894,975   153,393     523,545    1,587,202
Net profit         -       -         -           1,497,660  1,497,660
Dividend for 1998                                           
- final            -       -         -           (53,513)   53,513)
Dividend for 1999                                           
- interim          -       -         -           (61,158)   61,158)
Balance at 31      15,289  894,975   153,393     1,906,534  2,970,191
March 1999                                               
Balance at 1 April                                          
1999               15,289  894,975   153,393     1,906,534  2,970,191
for Cape Grace     -       -         (8,202)     -          (8,202)
Share options                                               
exercised          2       558       -           -          560
Net profit         -       -         -           223,715    223,715
Dividend for 2000                                           
- final            -       -         -           (152,895)  (152,895)
Dividend for 2000                                           
- interim          -       -         -           (107,027)  (107,027)
Balance at 31      15,291  895,533   145,191     1,870,327  2,926,340
March 2000                                               

1.   Accounting Policies
The accounting policies are the same as those used in the 31
March 1999 Annual Financial Statements, and no adjustment has
been made for the effects of hyperinflation.
2.   Net  Interest
                                              2000                1999
                                             Z$000               Z$000
Interest receivable                       207,637              114,077
Interest payable:                                    
Long term borrowings                      (418,638)           (195,459)
Overdrafts and short term borrowings                 
                                          (15,065)              (5,586)
Finance lease                             (11,580)   -
Related parties                           (56,123)              (3,000)
                                          (501,406)           (204,045)
                                          (293,769)            (89,968)

3.   Earnings per share

Basic earnings per share:
Basic earnings per share have been calculated by dividing  the
net  profit for the year attributable to shareholders  by  the
number of shares in issue of 152,915,305 (1999 - 152,895,305).
                                        2000         1999
                                       Z$000        Z$000
IIMR Headline earnings per                    
Net profit for the year              223,715    1,497,660
attributable to shareholders
Amortisation of goodwill              22,275       16,107
Loss/(profit) on disposal of                             
fixed assets                           2,432        2,528
                                     248,422    1,516,295
Number of shares in issue        152,915,305  152,895,305

4.   Cash flows from operating activities

                               2000               1999
                              Z$000              Z$000
Profit before taxation      351,431           1,728,960
Adjustments for:                              
Amortisation of goodwill    22,275            16,107
Depreciation                85,635            55,635
Finance cost/(income)       438,237           (1,211,666)
Dividends received          (48)              (5,209)
Scrip dividend received     (4,674)           -
Realised exchange gains     -                 4,885
Translation   of   foreign  (598)             -
joint venture
Profit on sale of shares    (18)              -
Loss on  disposal           2,432             2,528
of fixed assets
Operating cash flow before  894,672           591,240
working capital changes

5.   Cash generated from working capital changes
                                    2000           1999
Increase in stocks               (274,071)    (110,205)
Decrease/(Increase) in non-      74,954       (18,060)
interest bearing debtors
Increase in creditors            232,004      240,590
Net cash generated from working  32,887       112,325
capital changes

6.   Segmental information

Year ended 31 March 2000

                  Hotels   Supermarkets  Retail  Corporate   Group
Turnover         651,248   4,812,221   1,197,055      -     6,660,524
Operating profit 223,812   348,779     236,685  (19,608)  789,668
Finance costs                                            (438,237)
Taxation                                                  (51,692)
Minority                                                  (76,024)
Attributable                                              223,715
Segment assets   1,689,860 1,086,280  1,891,920 1,280,204 5,948,264
Segment          637,818   910,953    641,953   792,238   2,982,962
And goodwill     267,991   103,402     70,287   7,672     449,352
Depreciation and 46,130    26,870      32,629   2,281     107,910
Year ended 31 March 1999                                  
                  Hotels   Supermarkets   Retail  Corporate   Group
Turnover         449,951   2,937,224   806,292  -         4,193,467
Operating profit 210,284   187,261     127,412  (7,663)   517,294
Finance income                                          1,211,666
Taxation                                                 (193,440)
Minority                                                  (37,860)
Attributable                                            1,497,660
Segment assets   946,118   648,589     829,027  2,240,598  4,664,332
Segment          278,569   568,235     308,465  518,911    1,674,180
And goodwill     439,379   72,572      45,834   5,481     563,266
Depreciation and 25,352    17,822      24,023   4,545     71,742


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