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Harare - Meikles Limited, one of the biggest and oldest conglomerates in Zimbabwe, has delayed the release of its financials for the year to end-March, attributing this to government's tardiness in processing payment of the money it owes the company.
The Zimbabwean retail, hospitality and agro-processing company runs retail stores in Zimbabwe under a partnership with South African grocer Pick n Pay. Retailers in Zimbabwe are under pressure from the government to obtain their stock from local suppliers.
There have been conflicting statements over the amount Meikles is owed by the government, but Parliament heard last year that the company is owed $34.1m. Meikles earlier said it was owed as much as $90m and subsequently indicated that the government had moved to pay the debt through treasury bills.
Meikles said in an update to shareholders on Tuesday evening that “documentation in support of the agreement has still not been completed by Government” although it had “stressed the urgency of this matter” to government officials.
“This documentation is crucial to the release of the company’s audited financials for the current year,” the board of directors said.
As it awaits finalisation of the documentation, Meikles said it has obtained approval from the Zimbabwe Stock Exchange to delay the release of its audited year-end results until the end of this month.
Last year, Meikles initiated a $50m lawsuit against the stock market for suspending its shares from trading on the ZSE, saying the company had over-stated the amount it is owed by the government.
Meikles however has updated the market, saying turnover for the year to March 31 2016 had surged by 10% compared to the previous year. It said its operating income has also strengthened by as much as 14% while earnings before interest, tax and amortisation for the period had increased by $11.5m.
“With the exception of Hospitality, all segments of the Group contributed to the increase. The total Group turnover for the year was $454 million,” it said. Other Zimbabwean companies have reported profit declines and losses as the country continues to face economic challenges.
Meikles was founded by Thomas Meikles in 1892 after he emigrated from Scotland to South Africa with two of his brothers. He opened the Meikles Hotel, the flagship of the now diverse conglomerate, in Victoria Falls and followed it up with another hotel in Harare, subsequently expanding into other sectors of the economy.
