Harare – Financial results released by Meikles on Friday for the year ending March 2018 shows that the Group’s retail and properties segment are under immense strain.
The results announced by the group during the period show the segment being badly affected throughout the year attributed to the lack funds reported as due from government, a position which Meikles says is still prevalent in the early months of the new financial year.
Executive Chairman, John Moxon said the Company has received commitment that sums due by Government are acknowledged and will be paid.
“However, the Company awaits sufficient written documentation to enable inclusion of sums due in the financial statements,” he said.
Group earnings before depreciation, interest, taxation and amortisation (EBITDA) loss for the period is at $4.2 million which is almost identical to the loss of $4.1 million in the previous year.
Moxon said all Mega Market and M stores have been permanent closed, partly in the latter months of the year under review and partly in the early months of the financial year.
He said management successfully reduced expenditures, so going forward losses are reducing.
“With the knowledge that the funding is to be forthcoming, the segment will focus on retail offering that is compatible with the forward requirements of a smaller but more specialized retail offering.
“In this context a renovation of Barbours will be the first priority. It is envisaged that this project will be completed in the new financial year.
“The other stores will adopt the same merchandising methodology as Barbours, but physical renovations will coincide with the redevelopment along a similar concept to that achieved at Village Walk, Borrowdale,” he said adding that it is anticipated that these projects, when completed will generate substantial rental revenue for the Group.
Meikles Limited, an investments holding company, engages in the retail trading, wholesaling, agriculture, hotels, and security guard service businesses in Zimbabwe and internationally.
The company operates department stores under the Meikles, Barbours, and Meikles Mega Market brand names that offer a selection of electronic and household appliances, ladies’ and men’s fashions, clothes for boys’ and girls’, furniture, kitchenware, luggage and travel accessories, shoes and footwear, baby and toddler gears, toys, and other family goodies, as well as hardware products. It also operates a network of 52 TM supermarkets and hypermarket
