Meikles turnover up 12%, group upbeat on debt recovery negotiations

CONGLOMERATE Meikles Limited’s revenue for the nine months to December 31, 2015 was up 12% to US$347 million compared to prior comparative period as the group concluded negotiations to recover funds owed by government, the company reported on Tuesday.

Meikles financial position received a shot in the arm after it began receiving funds from a long-standing debt with the central bank.

The treasury bills issued to Meikles stem from a US$40 million deposit placed by Meikles with the Reserve Bank of Zimbabwe following its initial public offering in 1996. The funds had over the years gained interest.

Overall margins, together with operating income margins at 21,8% were marginally better than those of the previous period of 21,2%.

“Shareholders are advised that a basis on which funds are to be recovered has been agreed. The government has undertaken to repay the outstanding funds in tersms of the Reserve Bank of Zimbabwe Debt Assumption Act of July 2015,” the company said.

“Negotiators in both government and the company are to be commended on the conclusion of the agreement. The local business community should be encouraged by such a progressive interaction between government and a participant in the private sector.”
Expenses expressed a percentage of turnover decreased from 21% to 19%.-Staff Writer



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