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Meikles turns Jaggers to PnP_Meikles Limited is set to open its first Pick n Pay mega store at the former Jaggers site in Msasa during the first half of its next financial ,the company says.
Meikles executive chairman, John Moxon presenting the company’s half year results to September 30, 2011 said despite the recent regulatory approval for Pick n Pay to increase its shareholding in TM Supermarkets (TM) from 25 % to 49 %,the decision did not have any impact on the group’s financial performance.
“This investment will unlock opportunities for TM Supermarkets .The success achieved in obtaining most of the requisite approvals for the PnP investment into TM Supermarket and of the company being accorded its indigenisation recognition all augur well for the future,” Moxon said.
He however said the company had been forced to delay the introduction of PnP clothing as it awaited regulatory approval for the deal.
“The launch will now coincide with the reopening of the Kamfinsa branch,” said Moxon.
In the period under review, TM remained the biggest contributor to the group, recording a 36 percent increase in revenues to $136,6 million.
The Meikles group however posted a $5 million loss for the half year which it attributed to high financing cost.
Despite recording a 39 percent increase in revenues to $165,5 million , the Zimbabwe Stock Exchange listed entity was weighed down by $4,3 million in finance cost .
“The weighted average cost of borrowings was 15 percent p.a.Interest rates have remained high due to tight liquidity conditions and this has constrained the recovery process not just of the Meikles Group but industry as a whole,” the executive chairman said.
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