Meikles discounts RBZ treasury bills in FY15

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Meikles Limited made a loss of $34.5 million for the year ended 31 March 2015 down from a profit of $37.2 million prior year comparative. The Group reported a jump in operating losses to $10.3 million up from $0.9 million and also accounted for finance costs of $12.5 million and a provision for discount on RBZ balances of $14.7 million. Turnover for the period had increased by 8% to $413.3 million from $384.3 million prior year. Headline loss per share at USc4.38 was 167% up on prior year; as a result of the loss the board did not declare a final dividend. However total dividend for the year was USc2 following an interim dividend of the same amount approved on 23 December 2014. The Group recorded growth in turnover in the supermarkets business, Hotels and the wholesaling business. Turnover declines were however recorded in the agriculture and the departmental stores business. At EBITDA level Supermarkets came down to $9.3 million from $10.9 million, hotels increased to $1.9 million from $1.2 million, agriculture was in a loss position of $0.1 million from a positive position of $2.9 million. The departmental stores and the wholesaling business increased their EBITDA losses to $3.3 million and $2.4 million from $2.1 million and $0.4 million respectively. Overall EBITDA was at $0.5 million down from $7.8 million prior year comparative. – LES

The Zimbabwe Revenue Authority (Zimra) has recommended Government to reduce taxes for retailers as the influx of illegal vendors in cities and towns is threatening their survival. Zimra commissioner general Gershem Pasi said this was in light of challenges that many retailers were facing as they have to contend with vendors who sell their wares on pavements in front of their shops. Retailers argue that the vendors are crippling their operations as they often sell similar goods to theirs at lower prices, disadvantaging them as they have to pay rent and taxes. Pasi said the influx of vendors had also contributed to the high rate of tax evasion. Zimra is owed over $1 billion in unpaid taxes, a situation blamed on the current economic challenges. – The Herald, 3 July 2015

The Deposit Protection Corporation Zimbabwe has taken over the provisional judicial management of Tetrad Investment Bank, following the resignation of Winsley Militala, a step towards potential liquidation of the bank. Reserve Bank of Zimbabwe said “within the framework of promoting the balance between the multiple interests of depositors, shareholders, potential investors and other creditors, appointed the Deposit Protection Corporation as the Provisional Judicial Manager of Tetrad Investment Bank Limited to oversee the day to day management of the bank.” – The Herald, 3 July 2015

Government has dissolved the Postal and Telecommunication Regulatory Authority (Potraz) board with immediate effect over rancid corruption, gross abuse of financial resources and poor corporate governance at the establishment. The Potraz board which was appointed last year was led by Ishmael Chikwenere. ICT minister Supa Mandiwanzira said the decision to dissolve the board came after the ministry noted poor governance and gross abuse of financial resources of Potraz. – The Herald, 3 July 2015

By |July 3rd, 2015|Categories: Headlines|

About the Author:

Kudzanai’s background in financial journalism with ZFN, combined with a continuing education in financial management, provide a solid grounding for his work in the research department.