IT is proving to be a marriage made in heaven as some companies on the Zimbabwe Stock exchange’s prosperity and survival is dependent on the overall strength and structure of Kingdom Meikles Africa balance sheet and cash flow.
Marriage is believed to be that relation between a man and a woman in which the independence is equal, the dependence mutual, obligation reciprocal and earnings shared.
For Kingdom Meikles Africa its has been a case of a “good marriage” being at least 80% good luck in finding the right person at the right time. The rest is trust. The merger between the former Meikles Limited Group, Kingdom, Kingdom Financial holdings, Tanganda Tea Company Limited and Cotton Printers which was effective from December 31 2007, has seen the group recording its maiden interim results for the six month ending June 30 accumulating a revenue of $350 quadrillion on its books.
Although figures are losing meaning in the current hyperinflationary environment, the group’s attributable profit of $2,5 quintillion and operating profit of $726 quadrillion which are above market expectations.
Funds generated from operations were $788 quadrillion, while funds on hand amount to $2,5 quintillion.
“The group’s financial services, foreign assets and operations together with export earnings were key to revenue generation and maintaining real values in uncertain Zimbabwean trading conditions,” said the group’s chairman John Moxon.
Striking an average between what a man and woman thinks of their fiancÃ© a month before they marry and what they think of each other six months afterward, and you will have the truth about them with either one of them wishing they could reverse the whole process.
Kingdom Meikles Africa seem to have not regretted each moment since the merger.
“Exports of bulk tea, textile product, foreign exchange trading in the financial services group and the performance of the hotels, from a foreign currency earnings perspective, were all satisfactory given the local constraints to produce goods and services at the added value level,” said Moxon.
Of the group’s subsidiaries, Kingdom Financial Holdings’ operating profit increased by 367% to 678 quadrillion. Meikles Africa Hotels saw its operating profits increase by 8,6% to $29 quadrillion while Tanganda’s increased by 514% to $92 quadrillion. Cotton Printer’s achieved a 69% increase in operating profit to $2 quadrillion.
During the period under review the terms of the Kingdom Meikles Africa US$31 million deposit with the Reserve Bank was renegotiated with effect from January 1, further strengthening the group’s asset base.
The group has focused on the preservation of capital being mindful that investment in assets must provide returns to continue future trading cycles.
Going forward Moxon said: “The merged group will continue to take advantage of synergies and resources across its business entities and the diversity of the group with its solid asset base provides the strength to manage the current difficult environment.”
By Paul Nyakazeya