eBusiness Weekly
Business Writer
Diversified hospitality group, Meikles Limited, says the rollout of planned development of properties commenced during the financial year to March 31, 2022 with some of the properties nearing completion.
The group earlier indicated completion of the planned redevelopments of its properties once occupied by its retail segment across the country, was scheduled for the end of the financial year 2022.
This comes as the group closed its departmental stores in the country such as Barbours. The group also operated Greatermans Stores which also closed.
In an update for the year under review, chairman – John Moxon, indicated the development of the main property in Mutare was at final stages of completion by the end of the reporting period.
“The first phase, being the development of the Paint Centre section, was completed in December 2021 and handed over to the tenant. Works to develop shops for small businesses were at an advanced stage in Harare and Mutare.
“The space under development was fully subscribed by tenants. The refurbishment of the building along Robert Mugabe Road in Harare commenced after the reporting period. The anchor tenant is TM Pick n Pay,” he said in an update for the year to March 31, 2022.
Moxon highlighted the actual valuations of the properties would be certain after the renovations.
He said: “Once appropriate renovations to certain of these properties have been completed and optimal tenants have been secured for all properties, it is envisaged that a property portfolio at market valuation will represent a secure and beneficial part of overall shareholder investment value.”
Meanwhile, Meikles’ revenue for continuing operations grew by 34 percent to $66 billion from $49, 1 billion in 2021 primarily driven by the increase in sales units at the supermarket segment – TM Pick n Pay.
Gross profit margin increased by two percentage points to 25 percent from 23 percent in the previous year. Inflationary pressure on operating costs offset the increase in the gross profit margin and as a result the operating profit margin was maintained at 3 percent.
Figures from the group show profit after tax for continuing operations (excluding profit on distribution of subsidiary) grew by 461 percent to $3,4 billion from $599 million the previous year.
