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Business Reporter
Meikles Limited says occupancy levels at its Victoria Falls Hotel rose by 10 percent to 55 percent, but the volumes at a similar Harare City division, Meikles Hotel, were marginally down in the quarter to June 30, 2014. As such, revenue per available room increased by 42 percent for Victoria Falls Hotel while the same declined by 12 percent at Meikles Hotel.

Meikles Hotel’s occupancy levels for the first quarter were at 34 percent compared to 37 percent for the same period to 30 June 2013. The group said TM Supermarkets turnover for the quarter ended 30 June 2014 increased by 2 percent compared to same period in last year.

Margins remain stable but under pressure due to depressed economic environment. Progress has been made in branch refurbishment.  On completion, the retail projects currently underway will improve performance. In the agro-operations, Meikles said that exports of packaged tea to Zambia have shown an increase of 29 during the quarter ended 30 June 2014, but tea prices for bulk tea exports remained depressed.

The new tea packaging machinery has been installed at the diversified group’s Mutare factory and the increased capacity of the plant is expected to enable it to help Meikles enter new export markets.

Avocado and macadamia plantations are progressing well and Meikles plans to erect a pack house for handling of product later in the year. First “fly” crop, off early planted coffee will be harvested from October and indications are that yield will be larger than originally thought.

Meikles said the ongoing expansion of the group’s estates continues and we will complete this project by the target date of March 2015. Meikles has also entered the mining business through its subsidiary Meikles Centre Mining. The group said it is pursuing acquisition of gold deposits in Matabeleland, in the south of Zimbabwe.

Meikles said it was awaiting regulatory approval on the deals.

Meikles said it expected to conclude the recovery of funds held on deposit at the Reserve Bank of Zimbabwe in the coming weeks. In what should positively impact borrowing levels and interest charges.

The company said it was awaiting receipt of the balance of the Treasury Bills and discussions with relevant authorities on yield and tenure of the Bills already in its possession was progressing well.

“This positive approach is required to attract new investors and stimulate economic growth,” Meikles said.