Meikles seeks permission to withdraw from the London Stock Exchange

Meikles puts the deregistration of London Stock Exchange as a special issue to be discussed at the firm’s annual general meeting on December 5

• Meikles requests permission to delist London Stock Exchange.
• The proposal will be among the key issues to be discussed at the company’s annual general meeting (AGM) next month, according to a notice to shareholders issued on November 14, 2022.

Zimbabwe Stock Exchange Listed Diversified Group (ZSE) Meikles Limited said it was seeking shareholder approval to delist London Stock Exchange (LSE).

The proposal will be among the key issues to be discussed at the company’s annual general meeting (AGM) next month, according to a notice to shareholders issued on November 14, 2022. Meikles will hold its 85th virtual general meeting on December 5.

“That the company cancel the registration of its 4,556,899 ordinary shares on the official list of the financial conduct authority and the trading on the main market of the London Stock Exchange“, said the company in the notice under special matters.

“That the directors of the company are hereby authorized to do all things necessary to delist the shares of the company from the LSE.”

Meikles is an investment holding company incorporated in 1937 with a primary listing on the ZSE and a secondary listing on the London Stock Exchange. Meikles Limited the shares rebounded on the London Stock Exchange following the lifting of the suspension imposed on the shares of the company by the LSE in 2009.

This means that Meikles had a double listing. Dual listing means that a company’s shares are primarily listed on two or more different stock exchanges.

Secondary listing means that a company trades its shares on a stock exchange other than that of the first listing. As in this case, Meikles has a secondary listing on LSE.

The advantage of dual listing is that it can allow the company’s shares to be contacted by more market investors, get more capital raised, and improve the liquidity of the company’s shares.

With Meikles preparing for delisting, that just means they won’t get such benefits. The shareholders will decide at the scheduled general meeting.

Other key matters to be discussed at the AGM, as highlighted, are to receive, review and adopt the group financial statements for the year ended March 31, 2022 as well as the reports of the directors and the auditors relating thereto. The directors of Meikles Limited changed the closing date of the company’s fiscal year from March 31 to February 28.

Another general question is to consider also the renewal of the mandate of Peace Chidembo, Catherine Charmaine Chitio, Stewart Andrew Cranswickand Simon James Hammond who withdraws by rotation and being eligible proposes to be re-elected.

Appoint Messrs. Ernst and Young as the Statutory Auditors of the Company and the Group for the year ended February 28, 2023.

The group said it has adopted the requirements of the Companies and Other Business Entities Act [Chapter 24:31]:

“Section 191 (11) and ZSE Listing Requirements (Statutory Instrument 134/2019): Section 69 (6) as of the date of enactment. Messrs. Deloitte and Touche have been auditors of the Company for more than 10 years. Deloitte and Touche resigned as auditors of the company, in view of the requirements of Section 69 (6) of the ZSE registration requirements. The Board of Directors proposes the appointment of MM. Ernst and Young as the Company’s new auditors for the following financial year,” the statement read.

In the meantime, based on the abbreviated audited financial results for the year ended March 31, 2022, revenue from continuing operations, increased by 34% to ZWL66 billion from ZWL49.1 billion in 2021. Revenue growth was mainly driven by increased sales units in the supermarket segment. In terms of historical costs, revenue increased by 131% to ZWL 50.7 billion from ZWL 21.9 billion the previous year.

Gross profit margin increased two percentage points to 25% from 23% the previous year. Inflationary pressure on operating costs offset the increase in gross profit margin and as a result, operating profit margin was maintained at 3%. . (Historical cost, a growth from ZWL 2.4 billion to ZWL 4.3 billion).

Profit after tax from continuing operations (excluding profit on subsidiary distribution) increased by 461% to ZWL 3.4 billion from ZWL 599 million the previous year. (Historic cost, profit growth from ZWL 2.3 billion to ZWL 4.6 billion). Other comprehensive income increased to ZWL 3.0 billion from ZWL 843 million the previous year, of which ZWL 1.9 billion is attributable to the 35% increase in fair value of the investment in Mentor.

Total comprehensive income increased to ZWL 5.8 billion (prior year: ZWL 1.8 billion) (ZWL 11.8 billion at historical cost versus ZWL 4.4 billion), of which ZWL 4.6 billion (79%) is attributable to Meikles owners and the balance of ZWL 1.2 billion (21%) to minority shareholders.

The segment contribution to the Group’s financial performance has been highlighted in the abbreviated financial results.

Revenues increased by 36% to ZWL66.0 billion in group supermarkets, under the name TM Pick n Pay

The sales growth was due to a 26% and 11% increase in units and customer transactions, respectively, according to Meikles.

Operating profit increased by 54% to ZWL 2.8 billion from ZWL 1.9 billion the previous year. In historical cost, an increase of 88% to 4.7 billion ZWL against 2.5 billion ZWL. Operating profit growth was driven by strategic inventory investments, margin control and cost reduction initiatives. The segment’s liquidity remained solid. It generated enough cash flow from operations to fund the ZWL 1.8 billion branch renovations and ZWL 900 million dividend payout to shareholders. Stores renovated during the year were New territoriesMakoni and Zengeza.

Revenue went to $2.9 million of $342,000 last year in the hospitality segment. Room occupancy for the year increased to 16.77% from 2.45% last year due to the easing of strict local and international travel restrictions related to COVID-19 during the second half of the fiscal year. Profit after tax improved to ZWL 196 million from a loss of ZWL 212 million the previous year. The Group’s investment in the hotel industry is now reduced to a single operation.

The board also declared a final dividend from ZWL 100 cents and 0.1725 US cents per share, bringing the total dividend for the year to ZWL 280 cents and 0.1725 euro cent per share, including two ZWL interim dividends 80 cents and ZWL 100 cents.

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