Listed conglomerate, Meikles Limited is planning on unbundling some of its business portfolios in a move meant to unlock shareholder value once the on-going unbundling of its agriculture subsidiary, Tanganda Tea Company is concluded later this year.
The Group has business portfolios across hospitality, agriculture, retail, property and security sectors with brands such as Tanganda Tea Company, TM Supermarkets, TM Security and hotels in Zimbabwe and South Africa including the Cape Grace Hotel in Cape Town, all under its control.
Early this year, the Group announced that it will unbundle Tanganda and list it on the Zimbabwe Stock Exchange (ZSE).
It said Tanganda was in a strong financial position and well set to independently sustain its operations going forward.
“The Group has a large portfolio of properties,” company chairman, John Moxon said in a statement accompanying the company’s financials.
“Strategic alternatives are being examined on how best to unbundle properties and to provide an opportunity for shareholders to enhance value. A strategy will be determined and implemented after the Tanganda unbundling process,” said Moxon.
It is expected that the company will retain its retail business while the other properties, mainly the hotel segment will be unbundled.
This follows the Group’s disposal of its flagship hotel property, Meikles Hotel in Harare last year for US$ 20 million to a Dubai-based entity, Albwardy Investments.
“The status of the Hospitality assets is yet to be decided, but a strategy to unlock and enhance shareholder value will be determined. It is envisaged that Meikles Limited will focus on the retention of its investment in retail, primarily supermarkets,” Moxon said.
Meanwhile, the Group revenue for continuing operations marginally grew by 3 percent to ZWL$ 28.4 billion for the year ended March 2021 from ZWL$ 27.6 billion registered in 2020.
Profit after Tax for the year from continuing operations was ZWL 373.3 million down from the previous year of ZWL 3.5 billion
Group operating profit for the year from continuing operations was ZWL 878.3 million, down 2 percent from ZWL 894.5 million in the prior year.
“The Group increased employee remuneration to a level, which expressed as a percentage of revenue, exceeds that of the previous year. The increase was in response to the erosion of employees’ salaries since the introduction of the local currency in 2019 and to cushion employees from both the effects of inflation and the COVID-19 pandemic,” the Group said.
