Zimbabwean tycoon John Moxon’s Meikles posts $5.08 million in H1 profits, declares first interim dividend

Zimbabwe-based conglomerate Meikles Limited has posted ZWL1.64 billion ($5.08 million) in profit during the first half of its current financial year, as earnings surged by more than three-fold in the period under review.

It also declared its first interim dividend of ZWL0.80 per share, amounting to ZWL209 million.

Figures contained in the company’s half-year financial report revealed that its profit surged by 248.9 percent from ZWL469.2 million ($1.46 million) in the first half period of last year to ZWL1.64 billion ($5.08 million), while its revenue increased by 28.22 percent to ZWL19.98 billion ($62.06 million).

Meikles is a Zimbabwean company with a diverse portfolio of investments in hospitality, retail, supermarkets, agriculture and financial services, operating under Zimbabwean multimillionaire businessman John Moxon, the single largest individual shareholder, with 27,933,226 issued shares.

The company operates as a leading player in Zimbabwe through leading brands and subsidiaries such as Victoria Falls Hotel, TM Supermarkets, Meikles Stores, Tanganda Tea, Meikles Centar Mining and Meikles Guard Services.

The robust financial result can be linked to a strong performance by its supermarket and retail segment through TM Supermarkets and Meikles and an increase in its investment income.

The surge in Meikles’ half-year earnings is expected to strengthen its income reserve as the company delivered impressive results after it recorded an 89.3-percent decline in profit at the end of its 2021 financial year, which ended on March 31.

Moxon, who serves as chairman, noted that the group achieved increased liquid financial resources despite the trading environment and COVID-19 trading restrictions, which impacted its activities.

Due to the robust financial performance, the board declared a first interim dividend of ZWL0.80 per share, amounting to ZWL209 million.

The dividend is payable to shareholders on Dec. 16.

The dividend also aligns with its plans to implement the proposed demerger and listing of its agro-allied subsidiary, Tanganda Tea, subject to shareholder approval.

Meikles has delayed its strategic decision to unbundle and list Tanganda until Dec. 9 to allow time to secure capital gains tax relief from the Zimbabwe Revenue Authority.