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John Moxon

MEIKLES Limited is now reaping tangible benefits of its long-standing debt with the Reserve Bank of Zimbabwe after generating $23 million from the sale of RBZ treasury bills.

The income had palpable positive impact on group liquidity in the half year, with its cash balance from investing activities growing to $17.9 million from minus $2.8 million.

Executive chairman John Moxon said discussions were ongoing with the central bank over the outstanding amount, as Meikles saw borrowings declining by $22 million in interim.

“It’s expected this matter will be finalised shortly and shareholders will be advised further at appropriate time,” he said.

TBs at the beginning of the period totalled $22.9 million.

Meikles indicated in its latest financial results that part of the group’s total borrowings in the period under review were secured by treasury bills with a nominal value of $13.1 million. Other security placed against the group’s borrowings were secured by freehold property worth $61.8 million, inventory worth $6.5 million, trade receivables totaling $4.5 million and negative pledge over guarantees on borrowings amounting to $24.5 million.

Balances at the close of the half year period stood at $11.7 million. Meikles said that TBs issued by the RBZ were designated as available for sale of financial assets measured, initially at fair value calculated on yield to maturity of 17 percent.

The TBs being issued to Meikles stem from a $40 million deposit placed by Meikles with the Reserve Bank following its initial public offering in 1996, but for which finality on total amounts has taken long due to differences on effective interest. — BH24