Business / Companies
Meikles records a $5 million interim period loss
02 Dec 2011 at 01:59hrs | Views
Meikles revenues from continuing operations increased by 39% compared to the same period in 2010. The gross profit margins averaged 20.4% compared to 22.6% in 2010.
The loss for the 6 months period ended 30 September 2011 was $5 million (6 months ended 30 September 2010: loss of $519,000) after finance costs of $4.3 million. The weighted average cost of borrowings was 15% p.a. with interest rates remaining high due to tight market liquidity conditions and this has constrained the recovery process not just of the Meikles Group but industry as a whole.
TM Supermarkets revenues increased by 36.4% to $136.6 million (2010: $100.2 million). The EBIDTA for the 6 months ended 30 September 2011 was $3.5 million (2010: $2.1 million). This translated into an EBIDTA of 2.5% and a profit before tax percentage of 1.4%, compared to prior period ratios of 2.1% and 1% respectively.
TM opened its 50th supermarket in Mutoko in September 2011. The refurbishment works on the Kamfinsa branch that started in June 2011 will be completed in the last quarter of our financial year. TM largely operated from 48 branches during the period following the closure of the Mkoba branch in May 2011.
The launch of the Pick n Pay clothing in TM was delayed as the investment transaction awaited regulatory approval. The launch will now coincide with the reopening of the Kamfinsa branch. A large Pick n Pay supermarket will be opened at the former Jaggers site in Msasa, Harare, during the first half of our next financial year.
Thomas Meikle Stores revenues increased by 114.9% to $12.2 million (2010: $5.7 million). The gross margin was 32% (2010: 33%). The EBIDTA for the 6 months ended 30 September 2011 was $234,000 (2010: loss of $579,000). The growth was achieved on the back of credit sales which accounted for 76% of sales (2010: credit sales accounted for 52%) and the number of credit customers increased to 37,000 from 27,500 at 31 March 2011. With the gradual positive adjustments in market conditions and an improved stockholding, the company's performance will continue to improve.
Meikles Hospitality
The tourism sector in Zimbabwe continues to recover due to the relative political and economic stability. The tourist arrivals have increased by around 16% this year according to the Zimbabwe Tourism Authority. Meikles hotels have seen revenues increasing by 25% to $7.9 million (30 September 2010: $6.4 million).
Hotel occupancy levels were 56% (30 September 2010: 44%), 63% (30 September 2010: 59%) and 52% (30 September 2010: 38%) for the Victoria Falls Hotel (VFH), CGH and the Meikles Hotel (MH) respectively. Apart from the CGH, hotels also recorded an increase in revenues per available room (REVPAR) as follows $154 (30 September 2010: $136), R1,616 (30 September 2010: R1, 837) and $62 (30 September 2010: $52) for the VFH, CGH and MH respectively.
The refurbishment of the MH North Wing will now start in January 2012 as all the preparatory work has been completed. Rates available to the hotel industry in the Cape are more heavily discounted than in the past year. Despite this, the CGH enjoys a higher occupancy level and REVPAR than its main competitors.
The loss for the 6 months period ended 30 September 2011 was $5 million (6 months ended 30 September 2010: loss of $519,000) after finance costs of $4.3 million. The weighted average cost of borrowings was 15% p.a. with interest rates remaining high due to tight market liquidity conditions and this has constrained the recovery process not just of the Meikles Group but industry as a whole.
TM Supermarkets revenues increased by 36.4% to $136.6 million (2010: $100.2 million). The EBIDTA for the 6 months ended 30 September 2011 was $3.5 million (2010: $2.1 million). This translated into an EBIDTA of 2.5% and a profit before tax percentage of 1.4%, compared to prior period ratios of 2.1% and 1% respectively.
TM opened its 50th supermarket in Mutoko in September 2011. The refurbishment works on the Kamfinsa branch that started in June 2011 will be completed in the last quarter of our financial year. TM largely operated from 48 branches during the period following the closure of the Mkoba branch in May 2011.
The launch of the Pick n Pay clothing in TM was delayed as the investment transaction awaited regulatory approval. The launch will now coincide with the reopening of the Kamfinsa branch. A large Pick n Pay supermarket will be opened at the former Jaggers site in Msasa, Harare, during the first half of our next financial year.
Thomas Meikle Stores revenues increased by 114.9% to $12.2 million (2010: $5.7 million). The gross margin was 32% (2010: 33%). The EBIDTA for the 6 months ended 30 September 2011 was $234,000 (2010: loss of $579,000). The growth was achieved on the back of credit sales which accounted for 76% of sales (2010: credit sales accounted for 52%) and the number of credit customers increased to 37,000 from 27,500 at 31 March 2011. With the gradual positive adjustments in market conditions and an improved stockholding, the company's performance will continue to improve.
Meikles Hospitality
The tourism sector in Zimbabwe continues to recover due to the relative political and economic stability. The tourist arrivals have increased by around 16% this year according to the Zimbabwe Tourism Authority. Meikles hotels have seen revenues increasing by 25% to $7.9 million (30 September 2010: $6.4 million).
Hotel occupancy levels were 56% (30 September 2010: 44%), 63% (30 September 2010: 59%) and 52% (30 September 2010: 38%) for the Victoria Falls Hotel (VFH), CGH and the Meikles Hotel (MH) respectively. Apart from the CGH, hotels also recorded an increase in revenues per available room (REVPAR) as follows $154 (30 September 2010: $136), R1,616 (30 September 2010: R1, 837) and $62 (30 September 2010: $52) for the VFH, CGH and MH respectively.
The refurbishment of the MH North Wing will now start in January 2012 as all the preparatory work has been completed. Rates available to the hotel industry in the Cape are more heavily discounted than in the past year. Despite this, the CGH enjoys a higher occupancy level and REVPAR than its main competitors.
Source - Byo24News
