Statement re Management Report

Meikles Limited

Management report

Group shareholding

The Moxon Group exchanged their shares in Meikles Limited for shares in Gondor
Capital Limited ("Gondor"), a foreign registered company. Gondor's shareholding
in Meikles post this share consolidation is approximately 49% and will be
diluted to about 44% post the issue of shares to the Staff Share Trust. The
transaction was approved by the Reserve Bank of Zimbabwe. The consolidation of
the shares was booked over on the Zimbabwe Stock Exchange on 19 January 2012 at
a price of 17 cents per share. Gondor will use its offshore balance sheet to
raise funds for investment into Meikles and Zimbabwe.

Pick N Pay investment

Following the completion of all the regulatory approvals in Zimbabwe and South
Africa, Pick n Pay ("PnP") has now increased its shareholding in TM
Supermarkets from 25% to 49%. The US$13 million for the additional shareholding
has now been received and shares were issued effective 1 February 2012. The
funds will be utilised in the refurbishment of the supermarkets.

Staff Share Trust

The Staff Share Trust scheme was launched on 18 November 2011by the Minister of
Youth Empowerment, Indigenisation and Economic Development. The board of
Trustees for this scheme are still in the processing of raising funding to
purchase the shares. When fully funded the Trust can purchase up to 10% of the
Meikles Limited shares at the 30 day weighted average price prior to purchase.

Group financial performance

Having reported a loss before tax of $7 million for the half year ended 30
September 2011, the Group's financial performance has not changed materially.
The trading in the last quarter of the year 2011 was affected by the lack of
liquidity in the market on top of the already low disposable incomes. The year
on year growth in turnover levels slowed down markedly in the last quarter of
the year. Turnover growth was at 36% year on year as at 30 September 2011 but
retreated to 29% for the nine months ended 31 December 2011. The Group
borrowings at approximately $62 million have remained high and options are
being explored to reduce the debt to manageable levels.

TM Supermarkets ("TM")

The financial performance of this company has continued to improve from the
half year. TM has been trading profitably due to good margins and turnover
comparable to those in previous periods. The turnover growth was 30% year on
year as at 31 December 2011. The trading in 2012 has been steady and margins
are being maintained. The Kamfinsa branch is nearing completion and should open
in May 2012. New sites are being evaluated to expand the branch reach from the
current 50. The refurbishment programme has started following the receipt the
investment from PnP and the outlook is positive.

TM Stores ("Stores")

Improvement has been registered in the financial performance of Stores in the
last quarter to 31 December 2011 despite the obvious liquidity challenges and
low disposable incomes. Turnover growth was 59% year on year. The Stores
trading model was changed to increase volumes at the expense of margins.
Turnover continues to improve but is still below targeted levels. The limited
availability of credit funding due to market liquidity problems is affecting
the sales growth. Whilst the earnings before interest charges, depreciation and
tax have improved, the company will report a loss for the year ending 31 March
2012 mainly due to the interest burden.

Meikles Hospitality ("Hotels")

The hotels had an encouraging last quarter of the year 2011. The occupancy
levels improved markedly particularly for the Victoria Falls Hotel where the
occupancy level was 57% for the period ended 31 December 2011 (31 December
2010: 46%). For the Meikles Hotel, the occupancy level was 49% (31 December
2010: 41%) whilst for the Cape Grace Hotel the occupancy level was 66% (31
December 2010: 62%). The RevPars increased by 43% and 10% for the Victoria
Falls Hotel and Meikles Hotel respectively, whilst a decrease of 5% was
registered at the Cape Grace Hotel. The refurbishment at the Meikles Hotel is
scheduled to start in the first week of March 2012 for a period of seven
months. The Hotels are trading profitably and will report a profit for the year
ending 31 March 2012

Tanganda Tea Company ("Tanganda")

As reported at the half year, the tea plantation suffered frost bite and a heat
wave. In addition, the rains were delayed with meaningful rain only being
received in December 2011 at approximately 20% below December 2010 levels.
These climatic incidences have negatively affected the bulk tea production. The
heat wave in October 2011 also affected the macadamias as approximately 50% of
the fruit dropped to the ground due to wilting. The cost of production has
continued to increase whilst tea prices remained relatively flat. The company
will incur a loss for the financial year ending 31 March 2012. However, the
plantation development is continuing. Post the half year 32ha, 40ha and 34ha of
coffee, macadamia and avocados were planted. More land preparation is taking
place whilst seedlings for the next planting cycle for coffee, avocados and
macadamia have been acquired and are in nursery.

Outlook

The flagship operation within the Group being TM has received a timely boost
with the capital injection of $13 million. This will go a long way in restoring
TM's status as the retailer of choice in Zimbabwe. The refurbishment will lead
to an improvement in margins and turnover. The plantation development at
Tanganda will yield the desired results in the medium to long term. The outlook
for the Hotels is positive especially as Zimbabwe will be hosting the United
Nations World Tourism Organisation in 2013. The Stores challenge remains that
of accessing funding for the credit sales as the merchandising in the branches
is currently being revamped. The decisive move by the major shareholders to
mobilise upwards of $200 million for investment in Meikles and Zimbabwe augurs
well for the future growth of the company and its subsidiaries.

Posted by Meikles Limited on 15 February 2012