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MEIKLES Limited has secured funding for its capital projects as the Zimbabwe Stock Exchange-listed group reported modest interims for three months to June 30 with most divisions showing growth.“The group has secured long-term funding for all its projects being the refurbishment of the hotels, the plantation development in Tanganda and the refurbishment and outfitting of new stores in TM Supermarkets,” Meikles said in a statement.
“This funding is in line with the group’s financing policies, previously disclosed to shareholders.”
The company said progress had been made in getting better terms on the funds held on deposit with the Reserve Bank of Zimbabwe.
“The discussions are nearing conclusion and will result in a higher interest being accrued on the deposit, with a retrospective implication.”
The shareholder agreements pertaining to mining in partnership with Centar were concluded in June 2013 resulting in the formation of a new company, Meikles Centar Mining Limited.
Meikles has since been licensed by the Zimbabwe Investment Authority and is awaiting other regulatory approvals following which various mining projects would be pursued.
During the period under review, tea production at Tanganda was 33 percent higher than same period last year. Global average bulk tea prices were 15 percent up when compared with the corresponding quarter.
The beverage tea sales in the local market slowed down in the first quarter while the regional sales in Namibia and Zambia increased.
New markets for packed tea in South Africa, Mozambique and Botswana are being developed. A new state-of-the-art tea packing plant will be commissioned as the company gears for regional expansion.
Purified spring water production improved and volumes for the quarter rose 59 percent.
Trading in TM Supermarkets was within expectations. Turnover grew 5 percent. The branch refurbishment is underway in Masvingo, Gweru and Harare CBD branches.
The supermarkets division added two new trading operations in July bringing its stores portfolio to 51. Apart from the refurbishment of existing branches, at least two new branches will be added to the portfolio by the end of year.
At Thomas Meikles Stores, trading remained subdued. Meikles Hospitality operations registered a 3 percent decrease in turnover compared to the same period last year.
The group said the UNWTO General Assembly taking place from August 24 to 29 would provide opportunity for the country to showcase its tourist attractions.
“We therefore expect the occupancy levels to improve in future periods following this conference which is being co-hosted with Zambia,” said the group.
It added the refurbishment of the north wing at the Meikles Hotel will be completed by August 31. The first phase of the refurbishment at the Victoria Falls Hotel is also nearing completion. At both hotels, the outcome of these refurbishments has surpassed expectations.
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