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MEIKLES Limited recorded a 15 percent increase in turnover for the half year period ended September 30, 2015 to $255,6 million from $196.2 million prior year comparative due to increase in sales volumes from TM and Pick n Pay. The supermarkets contributed 196,7 million to total revenue during the period up from 167,9 million during the prior period.

However, operating income for the period rose 18 percent to $225,2 million up from $202,1 million in the comparable period last year. In a statement accompanying the group’s financial results Meikles chairman John Moxon said the increase in operating expenses was caused by growth in rents payable to third parties as result of growth in turnover and by growth in utility connected expenditures.

The group recorded a loss of $10,8 million from $2,8 million in the prior comparative period. The loss came after the group accounted for a loss of $4 million recognised on the disposal of Treasury Bills. The group’s EDITDA for the period increased by $6,4 million relative to the previous period.

Commenting on the different segment of the group Moxon said TM supermarkets was well positioned to redeem its term borrowings on schedule and these will be repaid progressively over the next 12 months.”

He said that the supermarkets were well placed to contribute meaningfully to the country’s economy going forward. “It’s pleasing to note that TM does provide opportunities for further employment in Zimbabwe and in this context it is an important contributor to the economy,” he said.

Moxon said the group’s other subsidiaries Tanganda and the hotel division had been affected by a fall in tea prices and a tax imposed on foreign tourist accommodation. International bulk tea prices fell to $1,28 per kg from $1,32 per kg.

The hotel side was also affected by changes in the South African visa requirements that had an effect on tourist arrivals Loss per basic earnings per share stood at 4,80 cents from 0,78 cents.— BH24