LIVINGSTONE MARUFU
Listed diversified group, Meikles Limited has injected close to US$21m into various agriculture projects in a bid to improve production levels, Business Times can report.
“As at March 31 2021, Meikles has cumulatively injected US$20.8m for macadamia nuts and avocados plantations development, an avocado processing facility and recently for solar power plants,” said group chairman, John Moxon (pictured).
He said Meikles Limited has provided additional capital to its subsidiary, Tanganda Tea Company Limited, which will soon be unbundled from the group and listed separately on the Zimbabwe Stock Exchange.
Tanganda, Moxon said, was now in a strong financial position to an extent that it can independently sustain its operations going forward.
The deal, however, will need shareholders’ approval.
The separate financial reporting will enhance understanding by financial markets leading to a more accurate valuation of the business.
The move is expected to unlock and enhance shareholder value in the business, Moxon said.
The group has a large portfolio of properties.
Moxon also said the group would focus on the retention of its investment in retail, primarily supermarkets. In its financial results for the year to March 31, 2021, profit for the group fell 86% to ZWL$603.6m from ZWL$4.44bn reported in 2020.
The group revenue for continuing operations grew by 3% to ZWL$28.4bn from ZWL$27.6bn bill in 2020.
Included in the previous year’s profit is a monetary gain of ZWL$4.5bn, whereas the year under review has recorded a monetary loss of ZWL$725.2m, a decline of ZWL $5.2bn from the previous year.
“The group’s financial results demonstrate resilience against the unprecedented effects of the Covid-19 pandemic. While the Covid-19 pandemic affected all group segments, it impacted severely on the hospitality segment’s operating revenue and profitability, as was common in that industry,” Moxon said.
A significant portion of the group’s monetary assets are denominated in foreign currency with the result that the monetary adjustment is related to technicalities of inflation accounting, as opposed to a real loss of value.
The structure of the group statement of financial position reflects a further enhancement.
A stronger cash position than that of the previous year has been recorded with cash and bank balances, net of borrowings, up from ZWL$202m to ZWL$724m.
All foreign currency denominated debts due to Pick n Pay have been paid, he said.
The agricultural segment, Tanganda Tea Company Limited, was classified as a discontinued operation amid indications that the company will be listed separately on the local bourse.
