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Meikles Ld - Half-year Report

MEIKLES LIMITED

ABRIDGED UNAUDITED FINANCIAL RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2019

CHAIRMAN’S STATEMENT

Group leadership

The Chairman’s Report for the financial year ended 31 March 2019, referred to a planned reconstruction in the Group activities and possible changes, where necessary, to the complement of Group and Segmental Boards of Directors and the provision of additional management skills. To this end, the board is currently addressing the issue of succession in executive management and the appointment of additional independent non-executive directors. The Company will make an announcement on these developments shortly. 

Group Strategy

The planned sale of Meikles Hotel, has been approved by Shareholders but is still subject to the Reserve Bank of Zimbabwe approval, will, if approved, provide financial strength for the planned strategy and unlock an ability to process the developments set out in this report.

Group export oriented projects are now being implemented, but they do and will require additional borrowings, which is not considered desirable. The sale of the hotel will avoid the necessity to borrow for these projects and proceeds from the sale are expected to be introduced into Group segments, when payments are specifically required for the benefit of the projects.


The Mentor Shareholders agree that a re-examination of strategies and an enhancement of shareholder expectations is required. This process is currently being pursued and will be pursued with greater vigour in the New Year.


In general, the Board will continue to adopt a positive trading strategy and will continue with expansion projects that are expected to enhance profitability and cash flows, but with a risk aversion to financial exposure, especially borrowings.

Financial results overviewcommentary based on Historical cost accounts

The Group fared well in a turbulent economic environment characterised by drought, high inflation affecting disposable incomes and foreign currency shortages resulting in intermittent supply of electricity and fuel.


Group earnings before interest, tax, depreciation and amortisation (“EBITDA”) for the period from continuing operations amounted to ZWL223.5 million (previous year: ZWL31.8 million).


Group profit after taxation from continuing operations was ZWL158.5 million (previous year: ZWL16.1 million).


Group comprehensive income amounted to ZWL 336.4 million and is entirely due to uplift of foreign assets from the exchange rate at the end of March 2019 (ZWL3.01:US$) to closing exchange rate at 30 September 2019 (ZWL15.20:US$).


Group net cash balance after deducting Group bank borrowings amounted to ZWL73.4 million (Previous year: net borrowings of ZWL30.8 million). The Group aims to expunge bank loans at the holding Company and Department Stores from operating cash flows before March 2020.

TM Supermarkets trading as TM and PnP

Revenue for the period was ZWL940.9 million (Previous year: ZWL305.6 million). The increase in revenue was due to inflation. Units sold declined by 22.0% during the period under review due to shrinking disposable incomes. Despite tough trading conditions, specifically supply challenges, the level of stocking in the stores is satisfactory.

EBITDA for the period amounted to ZWL125.9 million, up 477% from ZWL21.8 million achieved the previous year. Profit after tax was ZWL50.8 million (previous year: ZWL16.8 million). Profit after tax was after deducting ZWL54.6 million exchange losses primarily arising from a foreign currency denominated balance owed to Pick n Pay South Africa for merchandise supplied during the multi-currency period. At the end of November 2019, the balance had been reduced to ZAR 29.0 million from ZAR 100.4 million at the beginning of April 2019. Our target is to expunge foreign currency denominated liabilities before March 2020 and eliminate recurrence of exchange losses going forward.

 
Major renovation works at the Marondera Mall have been completed. The complex was opened at the end of November 2019. Five branches were refurbished during the period under review. Two new stores are expected to be opened in the first quarter of year 2020. During the period under review, TM Supermarkets was conferred with “Retail Supermarkets Sector Winner for Superbrand 2019” by Marketers Association of Zimbabwe and “Wholesale and retail sector Highest Dollar Value Contributor” for Greater Harare region by Zimbabwe Revenue Authority (ZIMRA)


Tanganda

Revenue grew to ZWL104.3 million from ZWL15.7 million achieved during the six months ended 30 September 2018. Bulk tea export sales of 3 669 tonnes were slightly ahead of 3 638 tonnes sold in the comparative period last year. Average international bulk tea export price for the period retreated to US$1.47/kg from US$1.68/kg in the six months period to 30 September 2018. Bulk tea production for the period declined by 25% primarily due to the drought and worsened by the inability to irrigate as well as reduced tea factories operating hours because of intermittent electricity supply. Volume of tea and coffee sales to the domestic market reduced by 25% due to diminishing disposable incomes.  

The volume of Macadamia production grew significantly by 234% from 233 tonnes in prior year to 779 tonnes. At 30 September 2019, 463 tonnes of the top graded crop had been sold at an average price of US$5.04 per kilogram compared to 374 tonnes sold in prior year at US$5.07 per kilogram.

The volume of avocado production grew by 44% from 1 371 tonnes in previous period to 1 908 tonnes in the period to September 2019. Average price of US$1.62/kg was 60% above US$1.01/kg realised in the previous period. Despite the adverse effects of two hailstorms and Cyclone Idai on the Avocado crop, high world market price this season compensated for low crop grade.

EBITDA for six months ended 30 September 2019 grew to ZWL96.8 million from ZWL8.4 million generated during the comparable period. Profit after tax grew to ZWL110.3 million from ZWL5.7 million in the previous year. Installation of micro-jet irrigation equipment was completed at two of the estates. The current focus is on building internal power generation capacity and work on 1.8 Mega Watt solar farm at Ratelshoek, our biggest estate, will commence before end of March 2020. Similar projects will be rolled out to the remaining four estates.

Tanganda’s contribution to foreign currency generation was recognised by Zimbabwe National Chamber of Commerce (ZNCC) as the segment was awarded “2018 Most Improved Exporter Award – Agriculture” in June 2019. 

Hospitality – Continuing operations

Revenue grew to ZWL33.1 million from ZWL4.4 million achieved during same period last year. Revenue per available room “RevPAR” retreated by 1% in US$ terms to US$194. Room occupancy declined to 67.70% from 72.56% whilst the average daily rate grew by 5% to US$287.

EBITDA grew to ZWL14.0 million from ZWL2.5 million in the previous year. Profit after tax for the six month’s period was ZWL26.2 million (previous year: ZWL1.8 million).

Three mock up rooms for Refurbishment works at The Victoria Falls Hotel were completed in October 2019. The roll out of the refurbishment is scheduled to commence in January 2020.


Discontinued operations

Meikles Hotel was classified as held for sale at 31 March 2019. Revenue for the period grew to ZWL31.8 million. (Previous year: ZWL6.0 million) Room occupancy for the period under review retreated to 38% from 45% in the comparative period of the previous year. RevPAR for the period declined to US$56 from US$61. EBITDA grew to ZWL10.7 million from ZWL0.9 million in the previous year.

As stated in the Chairman statement accompanying the Group financial results for the year ended 31 March 2019, all branches of department stores were closed at the end of June 2019. Consequently, operating results up to the date of closure and assets of the department stores were reclassified to discontinued operations. Clearance sales for stocks on hand at closure of branches were held in October and November 2019. The assets are being disposed through auction houses. Revenue for the period was ZWL0.6 million. (Previous year: ZWL0.4 million). Loss before interest, tax, depreciation and amortisation was ZWL2.1 million (Previous year: ZWL1.8 million).


Outlook
The Group is well placed to take advantage of opportunities that may arise as it has a reasonable mix of foreign currency denominated earnings to support its strategies. Trading during the first two months of the second half of the Group’s financial year reflects the same trends witnessed during the first half. The Group requires capital to build internal power generation capacity to ensure agricultural export operations run smoothly through having access to power supply at critical times of crop development and processing. The proceeds from the proposed disposal of Meikles Hotel will assist the Group to promptly construct the power generation plants.

Dividend

The directors are cognisant of the need for frequent dividend distributions due to high inflation prevailing in the operating environment and in this regard a declaration will be announced before end of the financial year.


Appreciation

I would like to extend my appreciation to our customers, suppliers, shareholders and regulatory authorities for their continued support. I also extend my appreciation to my fellow Directors, and to management and staff for their dedication and commitment.

JRT Moxon

Executive Chairman

16 December 2019

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2019
INFLATION ADJUSTED HISTORICAL COST
Unaudited Unaudited Unaudited Unaudited
30 Sep 2019 30 Sep 2018 30 Sep 2019 30 Sep 2018
ZWL 000 ZWL 000 ZWL 000 ZWL 000
CONTINUING OPERATIONS
Revenue 1,599,678 1,469,841 1,074,373 324,449
Net operating costs (1,455,968) (1,352,019) (862,060) (298,439)
Operating profit 143,710 117,822 212,313 26,010
Investment income 70 88 44 19
Finance costs (9,955) (19,455) (5,670) (4,295)
Net exchange (losses) / gains (14,693) 5,292 3,231 1,168
Fair value adjustments on biological assets (7,194) 354 (6,901) 78
Net monetary gain 169,978 - - -
Profit before tax 281,916 104,101 203,017 22,980
Income tax expense (47,354) (31,180) (44,482) (6,883)
Profit for the period from continuing operations 234,562 72,921 158,535 16,097
DISCONTINUED OPERATION
Profit / (loss) for the period from discontinued operation 43,202 (3,466) 1,548 (765)
Profit for the period 277,764 69,455 160,083 15,332
Other comprehensive income, net of tax
Items that may be reclassified subsequently to profit or loss:
   Exchange gains and monetary adjustments on transaltion of foreign entity
   Income tax relating to items that may be reclassified subsequently to profit or loss

 
31,156
-
-
-
336,380
-
-
-
Other comprehensive income for the period, net of tax 31,156 - 336,380 -
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 308,920 69,455 496,463 15,332
Profit for the period attributable to:
     Owners of the parent 222,704 38,596 134,983 8,520
     Non-controlling interests 55,060 30,859 25,100 6,812
277,764 69,455 160,083 15,332
Total comprehensive income is attributable to:
     Owners of the parent 253,860 38,596 471,363 8,520
     Non-controlling interests 55,060 30,859 25,100 6,812
308,920 69,455 496,463 15,332

Earnings per share (cents)
Basic earnings per share from continuing and discontinued operations 86.85 15.07 51.70 3.33
Basic earnings per share from continuing operations 70.00 16.42 51.11 3.63
Diluted earnings per share from continuing and discontinued operations 81.38 14.10 48.51 3.12
Diluted earnings per share from continuing operations 65.59 15.37 47.95 3.40
Headline earnings per share from continuing and discontinued operations 87.92 15.68 51.77 3.46
Headline earnings per share from continuing operations 70.71 15.68 48.43 3.76
Diluted headline earnings per share from continuing and discontinued operations 82.39 14.68 48.57 3.24
Diluted headline earnings per share from continuing operations 66.27 14.68 45.44 3.52

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 SEPTEMBER 2019

INFLATION ADJUSTED HISTORICAL COST
Unaudited Unaudited Unaudited Audited
30 Sep 2019 31 Mar 2019 30 Sep 2019 31 Mar 2019
ZWL 000 ZWL 000 ZWL 000 ZWL 000
ASSETS
Non-current assets
Property, plant and equipment 875,145 751,027 256,761 172,267
Investment property 1,063 1,067 233 236
Right of use assets 58,540 - 58,445 -
Investment in Mentor Africa (Pty) Limited 256,215 141,240 256,215 50,778
Biological assets 13,514 10,349 6,069 2,905
Intangible assets 562 562 124 124
Investments other 160,460 88,618 160,185 31,847
Deferred tax 50,279 22,049 29,931 9,111
Total non-current assets 1,415,778 1,014,912 767,963 267,268
Current assets
Inventories 266,849 290,685 231,621 100,163
Trade and other receivables 134,441 113,661 121,059 40,471
Biological assets – produce on bearer plants - 36,007 - 11,178
Other financial assets 1 25 1 9
Cash and bank balances 133,733 91,807 133,733 33,006
Non-current assets held for sale 137,504 136,492 30,653 30,032
Total current assets 672,528 668,677 517,067 214,859
Total assets 2,088,306 1,683,589 1,285,030 482,127
EQUITY AND LIABILITIES
Capital and reserves
Share capital 11 765 11,765 2,611 2,611
Share premium 13,486 13,486 3,925 3,925
Other reserves 380,648 157,999 376,309 64,929
Retained earnings 815,415 621,952 271,873 131,914
Equity attributable to equity holders of the parent 1,221,314 805,202 654,718 203,379
Non-controlling interests 234,203 205,921 80,289 48,999
Total equity 1,455,517 1,011,123 735,007 252,378
Non-current liabilities
Borrowings 13,936 34,058 13,936 12,244
Lease liabilities 48,112 - 48,112 -
Deferred tax 118,955 104,507 36,260 25,617
Total non-current liabilities 181,003 138,565 98,308 37,861
Current liabilities
Trade and other payables 394,982 387,890 394,911 140,368
Borrowings 46,376 143,303 46,376 51,520
Lease liabilities 10,428 2,708 10,428 -
Total current liabilities 451,786 533,901 451,715 191,888
Total liabilities 632,789 672,466 550,023 229,749
Total equity and liabilities 2,088,306 1,683,589 1,285,030 482,127

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2019

INFLATION ADJUSTED
Share
capital
Share
premium

Other reserves

Retained earnings
Attributable  to owners of parent Non-controlling
interests
Total
 ZWL 000  ZWL 000 ZWL 000 ZWL 000  ZWL 000  ZWL 000  ZWL 000
2019 – Unaudited
Balance at 1 April 2019 11,765 13,486 374,492 587,735 987,478 172,953 1,160,431
Profit for the period - - - 222,704 222,704 55,060 277,764
Transfer from non-distributable reserves - - (25,000) 25,000 - - -
Other comprehensive income for the period - - 31,156 - 31,156 - 31,156
Dividend paid – ordinary shareholders - - - (20,024) (20,024) - (20,024)
Non-controlling interests arising from Mopani Property Development (Private) Limited -

-


-


-
- 6,190 6,190
Balance at 30 September 2019 11,765 13,486 380,648 815,415 1,221,314 234,203 1,455,517
2018 – Unaudited
Balance at 1 April 2018 11,607 6,655 56,896 375,351 450,509 164,181 614,690
Profit for the period - - - 38,596 38,596 30,859 69,455
Non-controlling interests arising from Mopani Property Development (Private) Limited -

-


-


-
- (1,210) (1,210)
Balance at 30 September 2018 11,607 6,655 56,896 413,947 489,105 193,830 682,935

   

Share
capital
Share
premium

Other reserves

Retained earnings
Attributable  to owners of parent Non-controlling
interests
Total
 ZWL 000  ZWL 000 ZWL 000  ZWL 000  ZWL 000  ZWL 000  ZWL 000
2019 - Unaudited
Balance at 1 April 2019 2,611 3,925 64,929 131,914 203,379 48,999 252,378
Profit for the period - - - 134,983 134,983 25,100 160,083
Transfer from non-distributable reserves - - (25,000) 25,000 - - -
Other comprehensive income for the period - - 336,380 - 336,380 - 336,380
Dividend paid – ordinary shareholders - - - (20,024) (20,024) - (20,024)
Non-controlling interests arising from Mopani Property Development (Private) Limited -

-


-


-
- 6,190 6,190
Balance at 30 September 2019 2,611 3,925 376,309 271,873 654,718 80,289 735,007
2018 – Unaudited
Balance at 1 April 2018 2,562 1,469 12,559 82,854 99,444 36,241 135,685
Profit for the period - - - 8,520 8,520 6,812 15,332
Other comprehensive income for the period - - - - - - -
Non-controlling interests arising from Mopani Property Development (Private) Limited -

-


-


-
- (267) (267)
Balance at 30 September 2018 2,562 1,469 12,559 91,374 107,964 42,786 150,750

HISTORICAL COST

CONSOLIDATED STATEMENT OF CASHFLOWS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2019
INFLATION ADJUSTED HISTORICAL COST
Unaudited Unaudited Unaudited Unaudited
30 Sep 2019 30 Sep 2018 30 Sep 2019 30 Sep 2018
 ZWL 000   ZWL 000   ZWL 000   ZWL 000 
CONTINUING AND DISCONTINUED OPERATIONS

Cash flows from operating activities
Profit before tax – continuing operations 281,916 104,101 203,017 22,980
Profit / (loss) before tax – discontinued operations 42,802 (5,350) 1,548 (1,182)
324,718 98,751 204,565 21,798
Adjustments for:
- Depreciation and impairment of property, plant and equipment and investment property 18,617 29,768 9,934 6,571
- Net interest 10,742 19,892 5,626 4,391
- Net exchange losses / (gains) 18,861 (5,269) 1,711 (1,163)
- Right of use assets and lease liabilities 5,014 - 96 -
- Fair value adjustments on biological assets 7,194 (353) 6,901 (78)
- (Profit) / loss on disposal of property, plant and equipment (1,231) 376 (1,048) 83
Operating cash flow before working capital changes 383,915 143,165 227,785 31,602
Decrease / (increase) in inventories 23,836 (15,648) (131,459) (3,454)
(Increase) / decrease in trade and other receivables 16,057 7,461 (21,949) 1,647
(Decrease) / increase in trade and other payables (29,612) 69,526 171,767 15,347
Cash generated from operations 394,196 204,504 246,144 45,142
Income taxes paid (32,810) (17,432) (34,624) (3,848)
Net cash generated from operating activities 361,386 187,072 211,520 41,294
Cash flows from investing activities
Payment for property, plant and equipment (143,816) (66,196) (95,100) (14,612)
Proceeds from disposal of property, plant and equipment 1,462 725 1,220 160
Net movement in service assets (157) (118) (115) (26)
Net movement in other  investments 22 236 37 52
Net movement in biological assets (78) 1,350 820 298
Investment income 132 82 44 18
Net cash used in investing activities (142,435) (63,921) (93,094) (14,110)
Cash flows from financing activities
Net (decrease) / increase in interest bearing borrowings (3,453) (13,636) (3,453) (3,010)
Non-controlling interests arising from Mopani Property Development (Private)                     Limited 6,190 (1,205) 6,190 (267)
Finance costs (10,873) (19,988) (5,670) (4,412)
Dividend paid – ordinary shareholders (20,024) - (20,024) -
Net cash used in financing activities (28,160) (34,829) (22,957) (7,689)
Net increase in cash and bank balances 190,791 88,322 95,469 19,495
Cash and bank balances at the beginning of the period 91,807 154,822 33,006 34,175
Translation of foreign entity (96,691) - 2,577 -
Net effect of exchange rate changes on cash and bank balances (52,174) 5,319 2,681 1,175
Cash and bank balances at the end of the period 133,733 248,463 133,733 54,845

NOTES TO THE ABRIDGED UNAUDITED FINANCIAL RESULTS

1. Basis of preparation

The abridged unaudited financial results are prepared from statutory records that are maintained under the historical cost basis except for biological assets and certain financial instruments which are measured at fair value. Historical cost is generally based on the fair value of the consideration given in exchange for assets. The historical costs have been adjusted for the effects of applying International Accounting Standard (“IAS”) 29 – ‘Financial Reporting in Hyperinflationary economies’ . Refer to note 2.2 for further details.

These abridged financial results are presented in Zimbabwe dollars (ZWL), which is the Group’s functional and presentation currency, refer to note 2.1 for further details. These abridged unaudited financial results should be read in conjunction with the Group’s annual report for the full year to 31 March 2019.

2. Accounting policies

Accounting policies and methods of computation applied in the preparation of these abridged unaudited financial results are consistent, in all material respects, with those used in the prior year, except for the effects of new IFRS 16 - Leases, which became effective in the current year. 

2.1 Functional and presenation currency

The Group and its subsidiaries’ changed their functional and presentation currency from the   to the Zimbabwe dollar (“ZWL”) in the prior year. This followed the issuance of the Monetary Policy Statement (“MPS”) by the country’s central bank, the Reserve Bank of Zimbabwe (“RBZ”) and  Statutory Instrument (S.I.) 33 of 2019 which was promulgated soon after, giving effect and guidelines to the new currency.

2.2 Hyperinflation 

On 11 October 2019, the Public Accountants and Auditors Board (“PAAB”) issued a pronouncement on the application of IAS 29. The pronouncement requires that entities operating in Zimbabwe with financial periods ending on or after 1 July 2019, prepare and present financial statements in-line with the requirements of IAS 29.

The Directors have made appropriate adjustments to reflect the changes in the general purchasing power on the Zimbabwe dollar and for the purposes of fair presentation in accordance with IAS 29, these changes have been made on the historical cost financial information. Various assumptions have been made, with the significant assumption being the use of the consumer price indices (“CPI”), for the various years. This was due to the limitation of data available resulting in default to the CPI.

The source of the price indices used was the Reserve Bank of Zimbabwe website. Below are the indices and adjustment factors used up to 30 September 2019:


Indices
Adjustment Factor
CPI as at 30 September 2019 290.4 1.00
CPI as at 31 March 2019 104.4 2.78
CPI as at 30 September 2018 64.1 4.53
Average CPI 2019 161.7
Average CPI 2018 67.6

3. Going concern

The Directors assess the ability of the Group to continue in operational existence in the foreseeable future at each reporting date. As at 30 September 2019, the Directors have assessed the Group’s ability to continue operating as a going concern and believe that the preparation of these unaudited financial results on a going concern basis is still appropriate. 

4. Segment information

INFLATION ADJUSTED HISTORICAL COST
Unaudited Unaudited Unaudited Unaudited
30 Sep 2019 30 Sep 2018 30 Sep 2019 30 Sep 2018
ZWL 000 ZWL 000 ZWL 000 ZWL 000
Revenue – continuing operations
Supermarkets 1,416,470 1,384,173 940,930 305,557
Agriculture 145,038 70,972 104,271 15,667
Hotels 45,976 19,828 33,116 4,377
Departmental stores# - - - -
Corporate* (7,806) (5,132) (3,944) (1,152)
1,599,678 1,469,841 1,074,373 324,449

   

NOTES TO THE ABRIDGED UNAUDITED FINANCIAL RESULTS
INFLATION ADJUSTED HISTORICAL COST
Unaudited Unaudited Unaudited Audited
30 Sep 2019 30 Sep 2018 30 Sep 2019 31 Sep 2018
ZWL 000 ZWL 000 ZWL 000 ZWL 000
EBITDA – continuing operations
Supermarkets 67,811 98,605 125,878 21,767
Agriculture 83,381 37,993 96,776 8,387
Hotels 20,669 11,271 13,994 2,488
Departmental stores# - - - -
Corporate* (10,314) (3,674) (13,174) (811)
161,547 144,195 223,474 31,831

INFLATION ADJUSTED
HISTORICAL COST
Unaudited Unaudited Unaudited Audited
30 Sep 2019 31 Mar 2019 30 Sep 2019 31 Mar 2019
Segment assets ZWL 000 ZWL 000 ZWL 000 ZWL 000
Supermarkets 869,296 702,187 510,883 204,081
Agriculture 504,708 454,800 254,086 120,763
Hotels 256,677 226,657 107,453 54,930
Departmental stores 106,207 93,345 19,824 20,285
Corporate* 351,418 206,600 392,784 82,068
2,088,306 1,683,589 1,285,030 482,127
Segment liabilities
Supermarkets 357,925 300,715 357,925 108,112
Agriculture 119,007 139,521 56,394 33,385
Hotels 81,532 83,412 56,170 26,761
Departmental stores 20,238 50,504 23,611 18,102
Corporate* 54,087 98,314 55,923 43,389
632,789 672,466 550,023 229,749

   

*Intercompany transactions and balances have been eliminated from the corporate amounts. Corporate also includes other subsidiaries that are immaterial to warrant separate disclosure.

#Department stores was reclassified to discontinued operations in the current year.

The EBITDA figures are before Group management fees.

4.1 Discontinued operations

Meikles Hotel

The Directors of the Company resolved to dispose of the entire Meikles Hotel property, plant and equipment. Meikles Hotel is a division within the Group’s hospitality segment, Meikles Hospitality (Private) Limited. As at the interim reporting date, sale agreements had been concluded in principle subject to approval by shareholders of the Company and regulatory authorities. The expected proceeds of sale exceed the carrying amount of the related net assets and, accordingly, no impairment losses were recognised. The assets to be disposed have been classified as held for sale on the consolidated statement of financial position.

Departments Stores

As at 30 June 2019 all the remaining branches of Department Stores were closed. Meikles Limited has committed to pay off the company’s remaining outstanding creditors. The operations have been classified as discontinued in these abridged financial results.

The prior year comparative financial information from discontinued operations has been re-presented to include the operation classified as discontinued in the current period.

NOTES TO THE ABRIDGED UNAUDITED FINANCIAL RESULTS

INFLATION ADJUSTED HISTORICAL COST
Unaudited Unaudited Unaudited Audited
30 Sep 2019 31 Mar 2019 30 Sep 2019 31 Mar 2019
5. Other information ZWL 000 ZWL 000 ZWL 000 ZWL 000
Capital commitments authorised but not contracted for 330,364 330,364 118,836 118,836
Group’s share of capital commitments of joint operation 33,891 33,891 12,191 12,191
6. Net borrowings
Non-current borrowings 13,936 34,058 13,936 12,244
Current borrowings 46,376 143,303 46,376 51,520
Total borrowings 60,312 177,361 60,312 63,764
Cash and cash equivalents (133,733) (91,807) (133,733) (33,006)
Net borrowings (73,421) 85,554 (73,421) 30,758
Comprising:
Secured 49,697 157,506 49,697 56,622
Unsecured 10,615 19,855 10,615 7,142
60,312 177,361 60,312 63,764
6.1 Breach of loan covenants

During the course of the financial year, the Group was in default on some of its loan covenants with lenders. These defaults arose as a result financial difficulties facing the Department Stores. The affected lenders had called on the loans but the Group managed to renegotiate new payment agreements with these lenders. The Group has managed to settle some of the loans in full subsequent to the interim reporting date and continues to service the outstanding loans on a monthly basis.


 

Meikles Limited Website : www.meiklesltd.com