Interim Management Statement

Meikles Limited INTERIM MANAGEMENT REPORT RELEASED ON 1 SEPTEMBER 2014 This Interim Management Statement is issued by Meikles Limited in accordancewith the UK Listing Authority's Disclosure and Transparency Rules. Unlessstated otherwise, key trends and figures highlighted below refer to the threemonths ended 30 June 2014 and the corresponding period in the previousfinancial year (F2014). Operating and regulatory environment The deflationary trend in the economy remains a threat. Aggregate demandcontinues to decline and the tight liquidity situation in the Financial Marketsis evident. We understand a more practical approach is being adopted by the authorities intheir implementation of the Indigenisation laws and regulations. This positiveapproach is required to attract new investors and stimulate economic growth. Funds held on deposit with the Reserve Bank of Zimbabwe The position on this matter remains as reported in our Chairman's Statementdated 13 August 2014. The Company is awaiting receipt of the balance of theTreasury Bills and discussions with relevant authorities on yield and tenure ofthe Bills already in our possession are progressing well. Mining As reported in our last Chairman's Statement, Meikles Centar Mining is in theprocess of finalising regulatory approval for the purchase of a number of goldmines in the Matabeleland area of Zimbabwe. Funding is available from anexternal investor and we hope the transaction will be completed by the end ofSeptember 2014. Retail TM Supermarkets turnover for the quarter ended 30 June 2014 increased by 2%compared to same period in F2014 and margins remain stable though underpressure due to the depressed economic environment. We have completed therefurbishment of two branches post the end of F2014 and currently six branchesare under refurbishment to be completed before the end of our financial year. Meikles Mega Market has opened two new stores bringing its stores portfolio tothree and is progressing its expansion plans. The turnover levels are steadilyincreasing as a result of the increased trading area. The departmental stores are trading from a reduced store footprint followingthe consolidation that started in prior periods. The turnover for the firstquarter was 31% below that of the comparative period, however, the operatinglosses are reducing as result of the rationalisation. This process is stillongoing. Agro operations The ongoing expansion of our Estates continues and we will complete thisproject by the target date of March 2015. The first "fly" crop, off the early planted coffee will be harvested fromOctober 2014 and indications are that the crop will be larger than originallyenvisaged. The avocado and macadamia plantations are progressing well and we are planningto erect a pack house for the handling of product later in the year. Tea prices for bulk tea exports remain depressed. Exports of packaged tea toZambia have shown an increase of 29% during the quarter ended 30 June 2014. The new tea packaging machinery has been installed at our Mutare factory andthe increased capacity of the plant will enable us to consider entering newexport markets. Hospitality The occupancy levels for the Victoria Falls Hotel were 55% compared to 45% forthe comparative period. The Revpars increased by 42%. The number of touristarrivals in the resort town of Victoria Falls continues to grow and forwardbookings for the next six months are very encouraging. Meikles Hotel's occupancy levels for the first quarter were 34% compared to 37%for the period to 30 June 2013. The Revpars have decreased by 9%. This is abusiness focussed hotel and forward bookings for both conferences and thebusiness traveller segments are very positive. The Cape Grace Hotel in Cape Town continues to perform exceptionally well andshould deliver very good results at the half year. Outlook On completion, the retail projects currently underway will improve ourperformance. The Hospitality operations continue to do well and the outlook ispositive. The agricultural operations which are weather dependent are forecastto have a better outturn aided by the first yields on the coffee plantations.We expect to conclude the recovery of our funds held on deposit at the RBZ inthe coming weeks and this will have a positive impact on borrowing levels andinterest charges. We hope the regulatory approvals will be availed on ourmining ventures to allow for operations to start in the near future. END Issued on 1 September 2014 Notes: 1. The financial information on which this statement is based has not beenreviewed and reported on by the Group's auditors. 2. Please note that matters highlighted above may contain forward lookingstatements which are subject to various risks and uncertainties and otherfactors, including, but not limited to: - business conditions -climatic conditions -political environment -market related risks. • A number of these factors are beyond the Group's control. • These factors may cause the group's actual future results, performance orachievements to differ from those expressed or implied. • Any forward looking statements made are based on the knowledge of the Groupas at 1 September 2014.