Interim Results

Meikles Africa Ld
19 November 2002


     Unaudited Interim Results for the Six Months ended 30th September 2002 

Meikles Africa Limited, the Southern African hotel and retail group, which is
listed on the Zimbabwe and London Stock Exchanges, announces interim results for
the year ended 31st March 2002. 

Financial Highlights - Inflation Adjusted 
* Turnover of $28.6 billion, (2001 - $21.3 billion)
* Operating profit of $1.2 billion (2001 loss of $169 million)
* Exchange gains of $5.7 billion, (2001 - $4.6 billion)
* Attributable profit of $1.8 billion, (2001 - $972 million)
* Headline EPS - $13.38 (2001 - $9.21)
* Dividend - $4.50  

Financial Highlights - Historical Cost 
* Turnover of $22.2 billion, (2001 - $7.3 billion)
* Operating profit of $2.6 billion, (2001 - $556 million)
* Exchange gains of $4.4 billion, (2001 - $1.6 billion)
* Attributable profit $5.9 billion, (2001 - $2 billion)
* Headline EPS - $38.02 (2001 - $13.17)
* Dividend - $4.50

RESULTS REVIEW 

Historical Cost 

The first half has seen real turnover growth, which improved as the period
progressed. At 30th September 2002, turnover had grown by 205% compared to
official inflation figures for the six months of 126%.

Both retail divisions have shown volume increases as well as inflation driven
sales growth. The acquisition of the other 50% of the Cape Grace and an
unusually good low season performance by the hotel together with the inclusion
of Medix Pharmacies results has also contributed to the real increase in both
turnover and profits. It should be noted that the second quarter sales growth
for the Group of 221% compares favourably to the first quarter of 180%
demonstrating a strong upward trend in sales. Gross margins continue to improve
whilst operating expenses have been controlled resulting in a 369% growth in
operating profit to $2.6 billion.

After net interest expense of $495 million, exchange gains of $4.4 billion and
our share of Kingdom's profit of $361 million, the group increased profit before
tax from $2.4 billion to $6.9 billion. At the attributable level, headline
earnings per share increased from $13.17 to $38.02.

Inflation Adjusted 

The inflation adjusted accounts confirm the trends in the historical cost
information.

OPERATIONS

TM Supermarkets
* The newer branches including the flagship development at Borrowdale are 
  exceeding expectations.
* Supplies of basic commodities continue to cause concern.
* Volume growth indicates improved market share.
* Turnover growth expected to exceed inflation in the second half.

Retail
* Consumer shift from cash to assets has benefited division.
* Introduction of credit into Medix to benefit consumer.
* Plans to expand Medix progressing.
* Strong turnover growth expected to continue.

Hotels
* Cape Grace Hotel achieves record occupancies and highest room rates in 
  Cape Town.
* Zimbabwe hotels occupancy levels affected by lower tourist arrivals and local 
  business environment.
* Joint marketing with Cape Grace will enhance a local recovery programme.
* Cape Grace anticipates good results moving into the Cape high season.

INVESTMENT IN KINGDOM FINANCIAL HOLDINGS LIMITED

* Meikles supporting Kingdom's Rights Issue investing a further $380 million.
* Future profitability to be driven by regional expansion and better local
  capitalisation as a result of the Rights Issue.

INTERIM DIVIDEND ANNOUNCEMENT

On the 14th November 2002, the Board approved an interim dividend Number 66 of
$4.50 per share on 157 024 305 shares payable to members registered in the books
of the company at the close of business on 6th December 2002. The Transfer Books
and Register of Members will be closed from 6th December 2002 to 15th December
2002. Dividend cheques will be mailed to shareholders on or about 16th December
2002. The dividends payable to non-resident shareholders will be paid in
accordance with Exchange Control Regulations. Shareholders' withholding tax will
be deducted where applicable.

By order of the Board
A P LANE-MITCHELL 
Company Secretary                                        14 November 2002 

      
                               

                                                                                         
Enquiries:                                                 

Meikles Africa                            [phone]    
Andrew Lane-Mitchell, Company Secretary                    

College Hill                              [phone] 
Corinna Dorward                                            


CONSOLIDATED INCOME STATEMENT
For the six months ended 30 September 2002 
(all amounts in millions of Zimbabwe dollars)

                                                                                                                      
                                                 INFLATION ADJUSTED                               HISTORICAL COST
                                              Unaudited      Unaudited                        Unaudited      Unaudited
                                            6 months to    6 months to                      6 months to    6 months to
                                           30 Sept 2002   30 Sept 2001                     30 Sept 2002   30 Sept 2001

  Turnover                                       28,613         21,293                           22,158          7,275
  Cost of sales                                (21,111)       (16,420)                         (15,112)        (5,238)

  Gross Profit                                    7,502          4,873                            7,046          2,037

  Operating expenses                            (6,527)        (5,815)                          (4,627)        (1,730)
  Other income                                      260            773                              191            249

  Operating profit/(loss)                         1,235          (169)                            2,610            556
  Net interest                                    (614)          (497)                            (495)          (162)
  Exchange gains                                  5,722          4,638                            4,422          1,596
  Share of result of associate                      232          1,080                              361            433
  Net monetary loss                             (2,857)        (2,374)                                -              -

  Profit before taxation                          3,718          2,678                            6,898          2,423

  Taxation                                      (1,576)        (1,379)                            (688)          (321)

  Profit after taxation                           2,142          1,299                            6,210          2,102

  Minority interest                               (363)          (327)                            (292)           (68)

  Net profit attributable to                      1,779            972                            5,918          2,034
  shareholders                                                                                                        

  Basic earnings per share (cents)                1,133            625                            3,769          1,305

  IIMR Headline earnings per                      1,338            921                            3,802          1,317
  share (cents)                                                                                                       
                                                                                          
                             
CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES 
For the six months ended 30 September 2002                  
                                                                                                       
Net profit for the year attributable 
 to shareholders                                  1,779            972                             5,918         2,034
Net gains not recognised in the income statement                                     
- Increase in value of quoted investments           458          1,293                               999           365
- Capital gains deferred tax                      (198)           (76)                             (198)          (72)
Total recognised gains                            2,039          2,189                             6,719         2,327


CONSOLIDATED BALANCE SHEET  
At 30 September 2002 
(all amounts in millions of Zimbabwe dollars)

                                                                                                              
                                                       INFLATION ADJUSTED                   HISTORICAL COST
                                                   Unaudited         Audited         Unaudited         Audited
                                                          at              at                at              at
                                                30 Sept 2002   31 March 2002      30 Sept 2002   31 March 2002
          ASSETS                                                                                              
          Non-current assets                          28,569          25,219            15,988           8,903
          Current assets                              23,600          20,205            21,428          11,523
          Total assets                                52,169          45,424            37,416          20,426

          EQUITY AND LIABILITIES                                                                              
          Capital and reserves                        29,715          25,543            18,954          10,430
          Minority interest                              932             775               261             159
          Non-current liabilities                     13,757          11,554            10,436           5,395
          Current liabilities                          7,765           7,552             7,765           4,442
          Total equity and liabilities                52,169          45,424            37,416          20,426
                                                                                                                 

       CONSOLIDATED STATEMENT OF CHANGES IN EQUITY                                                               
       For the six months ended 30 September 2002                                                                
       (all amounts in millions of Zimbabwe dollars)                                                             
       INFLATION ADJUSTED -Unaudited                                                                             
                                                          Share     Share            Non-       Retained    Total
                                                        Capital   Premium   Distributable   Earnings and         
                                                                                 Reserves   Shareholders         
                                                                                            for dividend         

       Balance at 1 April 2002                              280    17,664           4,225          3,375   25,544
       Net gains not recognised in income statement                                                              
       - Increase in valuation of quoted investments          -         -               -            260      260
       Currency translation difference                        -         -           2,936              -    2,936
       Share options exercised                                -        34               -              -       34
       Net profit                                             -         -               -          1,779    1,779
       Dividend for 2002 - final                              -         -               -          (838)    (838)
                                                                                               
       Balance at 30 September 2002                         280    17,698           7,161          4,576   29,715
                                                                                                       
       Balance at 1 April 2001                              278    17,508           3,385          (343)   20,828
       Net gains not recognised in income statement                                          
       - Increase in valuation of quoted investments          -         -               -          1,217    1,217
       Currency translation difference                        -         -              491             -      491
       Share options exercised                                2       134                -             -      136
       Net loss                                               -         -                -           972      972
       Dividend for 2001 - final                              -         -                -         (840)    (840)
                                                                                               
       Balance at 30 September 2001                         280     17,642           3,876         1,006   22,804
   
                                                                                                              
       HISTORICAL COST - Unaudited                                                                              
                                                          Share     Share            Non-       Retained    Total
                                                        Capital   Premium   Distributable   Earnings and         
                                                                                 Reserves   Shareholders         
                                                                                            for dividend  
       
        Balance at 1 April 2002                              16       991             627          8,796   10,430
        Net gains not recognised in income statement                                                             
        -Increase in valuation of quoted investments          -         -               -            801      801
        Currency translation difference                       -         -           2,270              -    2,270
        Share options exercised                               -        27               -              -       27
        Net profit                                            -         -               -          5,918    5,918
        Dividend for 2002 - final                             -         -               -          (492)    (492)

        Balance at 30 September 2002                         16     1,018           2,897         15,023   18,954

        Balance at 1 April 2001                              15       928             262          3,006    4,211
        Net gains not recognised in income statement                                                             
        -Increase in valuation of quoted investments          -         -               -            293      293
        Currency translation difference                       -         -             170              -      170
        Share options exercised                               -        50               -              -       50
        Net profit                                            -         -               -          2,034    2,034
        Dividend for 2001 - final                             -         -               -          (232)    (232)

        Balance at 30 September 2001                         15       978             432          5,101    6,526


CONSOLIDATED CASH FLOW STATEMENT 
For the six months ended 30 September 2002 
(all amounts in millions of Zimbabwe dollars)

                                                                                                                      
                                                                INFLATION ADJUSTED                  HISTORICAL COST
                                                             Unaudited      Unaudited         Unaudited      Unaudited
                                                           6 months to    6 months to       6 months to    6 months to
                                                          30 Sept 2002   30 Sept 2001      30 Sept 2002   30 Sept 2001
  Cash flows from operating activities                                                                                
  Profit before taxation                                         3,718          2,678             6,898          2,423
  Adjustment for:                                                                                                     
  Non-operating cash flow                                      (5,799)        (4,215)           (4,035)        (1,460)
  Non-cash items                                                 1,280            288             1,432          (289)

  Operating cash flow before working capital                     (801)        (1,249)             4,295            674
  changes                                                                                                             
  Generated/(used in) from working capital                       2,164        (1,468)             (892)          (428)
  changes                                                                                                             

  Operating cash flow                                            1,363        (2,717)             3,403            246
  Income tax paid                                                (493)          (341)             (101)           (34)

  Net cash generated/(used in) from operating                      870        (3,058)             3,302            212
  activities                                                                                                          

  Net cash (used in)/generated from investing                    (255)          1,123             (255)          (246)
  activities                                                                                                          

  Net cash (used in)/generated from financing                  (5,665)        (2,980)           (1,226)             51
  activities                                                                                                          

  Net effect of exchange rate changes                                                                                 
  on cash and cash equivalents                                   6,521          4,640             4,422          1,596

  Net increase/(decrease) in cash and cash                       1,471          (275)             6,243          1,613
  equivalents                                                                                                         
  Cash and cash equivalents at 31 March 2002                    11,589         12,242             6,817          3,376

  Cash and cash equivalents at 30 September 2002                13,060         11,967            13,060          4,989



SUPLEMENTARY INFORMATION 
For the six months ended 30 September 2002 
(all amounts in millions of Zimbabwe dollars)

                                                                                                                
                                           INFLATION ADJUSTED                                 HISTORICAL COST
                                        Unaudited      Unaudited                        Unaudited      Unaudited
                                      6 months to    6 months to                      6 months to    6 months to
                                     30 Sept 2002   30 Sept 2001                     30 Sept 2002   30 Sept 2001

        Capital expenditure                   781            482                              632            208
        Depreciation                          439            564                              232             98


Accounting policies 
The accounting policies are the same as those used in preparing the 31st March
2002 Annual Financial Statements.

Note to inflation adjusted financial statements 
The consumer price indices used to restate the financial statements at 30
September 2002 are as follows:

                                                                          
30 September 2001           982.8   
31 March 2002             1,386.9 
30 September 2002         2,357.7 


Segment information 
(all amounts in millions of Zimbabwe dollars)

                                                                                        
Turnover                                                
Hotel                                       3,078        1,662                                  2,430        573
Supermarkets                               20,574       16,361                                 15,897      5,573
Retail                                      4,961        3,270                                  3,831      1,129
Corporate and other                             -            -                                      -          -
                                           28,613       21,293                                 22,158      7,275

Operating profit                                        
Hotel                                         420        (461)                                    447         44
Supermarkets                                  442          241                                  1,460        375
Retail                                        839           56                                    668        159
Corporate and other                         (466)          (5)                                     35       (22)
                                            1,235        (169)                                  2,610        556
Total assets                                            
Hotel                                     19,527        10,709                                 13,882      3,229
Supermarkets                              10,622         8,329                                  6,624      2,323
Retail                                     9,600         7,010                                  6,476      2,133
Corporate and other                       12,420        15,852                                 10,434      5,551
                                          52,169        41,900                                 37,416     13,236


For further information contact either: 

                                                                                               
Zimbabwe          Christopher Parvin [phone]                
                  Roy Franklin [phone]   
                   
United Kingdom    Corinna Dorward [phone]                   

Directors         JRT Moxon (Chairman), ACL Parvin (Chief Executive) 
                  DE Stephens, MA Masunda, MV Cameron, M Wilson      
     
 

      
END
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