Final Results

Meikles Africa Ld
14 May 2001



                            MEIKLES AFRICA LIMITED

            Preliminary Results for the year ended 31st March 2001

Meikles Africa Limited, the Southern African hotel and retail group, which is
listed on the Zimbabwe and London Stock Exchanges, announces preliminary
results for the year ended 31st March 2001.

*     Turnover up 41.9% from Z$6.7 billion to Z$9.5 billion

*     Operating profit up 20 % from Z$790 million to Z$951 million

*     Operating cashflow per share: Z$7.45 (200: Z$6.06)

*     Headline earnings per share: Z$9.64 (200: Z$2.33)

*     Final dividend per share: 150 cents

                                                                   14 May 2001



Enquiries:

Meikles Africa                                 Tel: + 263 4 252 068
Chris Parvin, Chief Executive


College Hill                                   Tel: [phone]
Corinna Dorward

GROUP COMMENTARY

FINANCIAL

Inflation Adjusted Accounts

The Group has seen a decline in turnover of 9.8% to $11,7 billion after
applying inflation indices to last year's and the current years figures. Costs
have been well controlled and are marginally lower than last year. Operating
profit of $223 million, is down from $719 million, reflecting the decline in
turnover and a lower gross margin level.

Finance income of $585 million compares very favourably with the charge of
$558 million in the previous year. This improvement is due to exchange gains
of $1,4 billion and the decline in interest rates charged in the last quarter
of the year. The Group continues to be financially sound with low cost local
borrowings covered by US dollar deposits.

The inclusion of the Group's share of Kingdom Financial Holdings profits
amounts to $117 million before tax. It should be noted that because Kingdom
Financial Holdings is included in the Groups results as an associate, the
uplift in the value of the investment amounting to $1,9 billion has not been
taken to account in these financial statements.

Headline earnings per share and cashflow earnings per share of 410 cents (2000
: loss per share of 715 cents) and 272 cents (2000 : nil) respectively, show
marked growth in the current year.

Historical Cost Accounts

Group turnover increased by 41.9% to $9,5 billion and the operating profit
increased by 20.4% to $951 million, reflecting trading in a difficult and
deteriorating environment in Zimbabwe.

Finance income includes exchange gains of $1,138 million and, together with
the inclusion of our share of the Kingdom profits of $201 million, has
resulted in an increase in profit before taxation from $487 million to $1,618
million.

At the attributable level headline earnings per share have shown significant
growth to 964 cents from 233 cents last year.

OPERATIONS

TM Supermarkets


  * Turnover increased by 50% from $4,8 billion to $7.2 billion.

  * Margins were positively affected by the continued success of own brand
    products.

  * Operating profit improved to $510 million (last year $333 million).

  * New supermarkets were opened at Bradfield in Bulawayo, Budiriro in
    Harare, Sakubva in Mutare and in Ruwa and all performed above expectation.

  * A new flagship Borrowdale branch in Harare is to open before Christmas
    2001.

Retail Division


  * Turnover increased by 25% from $1.2 billion to $1.5 billion.

  * Operating profit increased by 61% to $399 million (last year $248
    million) mainly through better credit performance, reduced stocks and
    tight controls.

  * The Clicks/Diskom operating profit contributed $16 million (last year $3
    million) with 3 new stores opening during the year.

Hotel Division


  * Turnover increased by 22% from $651 million to $795 million.

  * Operating profit decreased by 46% to $122 million (last year $224
    million).

  * Both Zimbabwe hotels made profit contributions.

  * The decline in tourism and business arrivals severely affected
    occupancies in both the Zimbabwe Hotels.

  * The Cape Grace Hotel in Cape Town is reported for the first time on a
    full year basis.

  * The group's 50% share of the Cape Grace's operating profit increased by
    159% to $60 million.

  * Meikles Hotel was voted one of 'The Top Ten Best Foreign Hotels in the
    World' by the Daily Telegraph Survey in October 2000.

  * Cape Grace nominated as the best hotel in the world by the American
    readers of Conde Nast magazine.

  * Both Meikles Hotel and the Victoria Falls Hotel remain members of the
    Leading Hotels of the World and the Cape Grace during the year became a
    member of Leading Small Hotels of the World.

Kingdom Financial Holdings


  * The group's share of Kingdom's attributable profits is $136 million.

  * The group has actively supported the Kingdom retail bank initiative with
    7 branches being opened by 31 March 2001 with plans well advanced for
    further openings in the coming year.



DIVIDEND ANNOUNCEMENT

On 10th May 2001, the Board approved a final dividend number 63 of 150 cents
per share on the shares payable to members registered in the books of the
Company at the close of business on Friday 22nd June 2001. The Transfer Books
and Register of Members will be closed from 23rd June to 9th July 2001.
Dividend cheques will be mailed to shareholders on or about 9th July 2001. The
dividends payable to non-resident shareholders will be paid in accordance with
Exchange Control Regulations. Shareholders' withholding tax will be deducted
where applicable.

The Annual General Meeting of the Company will be held in Harare on 1st August
2001, details of which will be provided in the Annual Report.



By order of the Board

A P LANE-MITCHELL

Company Secretary

10th May 2001



CONSOLIDATED INCOME STATEMENT

for the year ended 31 March 2001

                                INFLATION ADJUSTED            HISTORICAL COST
                              Audited       Audited       Audited       Audited
(Z$ 000's)                       Year          Year          Year          Year
                                ended         ended         ended         ended
                                   31            31            31            31
                                March         March         March         March
                                 2001          2000          2001          2000

Turnover                   11,675,949    12,943,594     9,450,787     6,660,524

Cost of sales             (9,069,256)   (9,870,807)   (6,864,980)   (4,782,446)

Gross Profit                2,606,693     3,072,787     2,585,807     1,878,078

Operating expenses        (2,988,706)   (2,911,659)   (2,158,733)   (1,393,685)
Other income                  604,857       558,365       523,995       305,275
Operating profit              222,844       719,493       951,069       789,668

Finance income/               585,247     (558,048)       465,952     (302,396)
(costs)
Profit after finance          808,091       161,445     1,417,021       487,272
income/(costs)

Share of result of            117,337             -       200,517             -
associate
Net monetary loss           (579,934)     (978,203)             -             -

Profit/(Loss) before          345,494     (816,758)     1,617,538       487,272
taxation

Taxation                       24,014     (115,044)     (107,838)      (79,409)

Profit after taxation         369,508     (931,802)     1,509,700       407,863

Minority interest           (102,541)     (222,293)     (112,580)      (76,024)

Net profit/ (loss)            266,967   (1,154,095)     1,397,120       331,839
attributable to
shareholders


Basic earnings per                174          -754           912           217
share (cents)

IIMR Headline earnings            410          -715           964           223
per share (cents)

CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
FOR THE YEAR ENDED 31 MARCH 2001

Net profit/(loss) for         266,967   (1,154,095)     1,397,120       331,839
the year
attributable to
shareholders

Net gains/(losses) not
recognised in the
income statement:
- Decrease in value of        (3,219)     (280,138)       (3,073)     (135,841)
quoted investments
- Capital gains                46,330       128,785         1,449        27,717
deferred tax
Total recognised gains        310,078   (1,305,448)     1,395,496       223,715
and losses



CONSOLIDATED BALANCE SHEET

At 31 March 2001
(Z$ 000's)                       INFLATION ADJUSTED          HISTORICAL COST
                                Audited      Audited      Audited      Audited
                                     At           At           At           At
                               31 March     31 March     31 March     31 March
                                   2001         2000         2001         2000
ASSETS
Non-current assets            5,467,249    5,673,169    3,393,092    2,607,202
Current assets                5,237,153    5,386,766    5,124,568    3,341,062
Total assets                 10,704,402   11,059,935    8,517,660    5,948,264
EQUITY AND LIABILITIES
Capital and reserves          5,744,894    5,640,218    4,211,186    2,926,342
Minority interest               151,241      141,686       67,106       38,960
Non-current liabilities       3,370,229    3,565,778    2,801,330    1,883,771
Current liabilities           1,438,038    1,712,253    1,438,038    1,099,191
Total equity and             10,704,402   11,059,935    8,517,660    5,948,264
liabilities



CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 
For the year ended 31 March 2001 

                                                                              
  INFLATION        Share     Share            Non-       Retained       Total 
  ADJUSTED       Capital   Premium   Distributable   Earnings and             
  (Z$ 000's)                              Reserves   Shareholders             
                                                     for dividend
             
  Balance at 1   76,934   4,792,549        808,473       (37,738)   5,640,218 
  April 2000                                                                  
  Net                                                                         
  gains/(losses)                                                               
  not                                                                       
  recognised                                                                  
  in income                                                                   
  statement                                                                   
  - Change in         -          -               -         43,111      43,111 
  value of                                                                    
  quoted                                                                      
  investment                                                                  
  - Cape Grace        -          -         125,199              -     125,199 
  Hotel                                                                       
  Share             162     36,066               -              -      36,228 
  options                                                                     
  exercised                                                                   
  Net profit          -          -               -        266,967     266,967 
  Dividend for        -          -               -      (238,202)   (238,202) 
  2000 - final                                                                
  Dividend for        -          -               -      (128,627)   (128,627) 
  2001 - Interim                                                                
                                                                               
  Balance at 31  77,096  4,828,615         933,672       (94,489)   5,744,894 
  March 2001                                                                  
 
                                                                              
  Balance at 1   76,931  4,791,601         821,250      1,833,074   7,522,856 
  April 1999                                                                  
  Net                                                                         
  gains/(losses)                                                              
  not                                                                         
  recognised in                                                               
  income                                                                      
  statement                                                                   
  - Change in         -          -               -      (151,353)   (151,353) 
  value of                                                                    
  quoted                                                                      
  investment                                                                  
  - Cape Grace                            (12,777)              -    (12,777) 
  Hotel                                                                       
  Share options       3         948              -              -         951 
  exercised                                                                   
  Net loss            -           -              -    (1,154,095) (1,154,095) 
  Dividend for        -           -              -      (359,157)   (359,157) 
  1999 - final                                                                
  Dividend for        -           -              -      (206,207)   (206,207) 
  2000 -                                                                      
  Interim                                                                     
 

                                                                              
  Balance at 31  76,934   4,792,549        808,473       (37,738)   5,640,218 
  March 2000                                                                  
 

                                                                              
  HISTORICAL            Share      Share  Non-           Retained         Total 
  COST                Capital    Premium  Distributable  Earnings and           
  (Z$ 000's)                              Reserves       Shareholders          
                                                         for dividend          
 

                                                                              
  Balance at 1         15,291    895,533    145,191      1,870,327    2,926,342 
  April 2000                                                                  
  Net gains/                                                                  
  (losses) not            
  recognised in        
  income statement                                                            
  - Change in value         -          -          -        (1,624)      (1,624) 
  of quoted                                                                   
  investment                                                                  
  - Cape Grace              -          -    117,374              -      117,374 
  Hotel                                                                       
  Share options           143     32,105          -              -       32,248 
  exercised                                                                   
  Net profit                -          -          -      1,397,120    1,397,120 
  Dividend for 2000         -          -          -      (152,915)    (152,915) 
  - final                                                                     
  Dividend for 2001         -          -          -      (107,359)    (107,359) 
  - Interim                                                                   
  Balance at 31        15,434    927,638    262,565      3,005,549    4,211,186 
  March 2001                                                                  
  Balance at 1         15,289    894,975    153,393      1,906,534    2,970,191 
  April 1999                                                                  
  Net                                                                         
  gains/(losses)                                                              
  not recognized in                                                           
  income statement                                                            
  - Change in value         -          -          -      (108,124)    (108,124) 
  of quoted                                                                   
  investment                                                                  
  - Cape Grace              -          -    (8,202)              -      (8,202) 
  Hotel                                                                       
  Share options             2        558          -              -          560 
  exercised                                                                   
  Net loss                  -          -          -        331,839      331,839 
  Dividend for 1999         -          -          -      (152,895)    (152,895) 
  - final                                                                     
  Dividend for 2000         -          -          -      (107,027)    (107,027) 
  - Interim                                                                   
  Balance at 31        15,291    895,533    145,191      1,870,327    2,926,342 
  March 2000                                                                  
 
 

CONSOLIDATED CASH FLOW STATEMENT

For the year ended 31 March 2001
(Z$ 000's)                             INFLATION ADJUSTED      HISTORICAL COST
                                        Audited   Audited    Audited    Audited
                                           Year      Year Year ended Year ended
                                          ended     ended
                                       31 March  31 March   31 March   31 March
                                           2001      2000       2001       2000

Cash flows from operating activities
Profit/(Loss) before taxation           345,494 (816,758)  1,617,538    487,272
Adjustment for:
Non-operating cash flow               (554,858)   569,986  (475,203)    300,088
Non-cash items                          436,729   439,357     70,723    106,514
Operating cash flow before working
capital changes                         227,365   192,585  1,213,058    893,874
Generated from/(used in) working
capital changes                         189,545 (203,829)   (71,777)     32,887
Operating cash flow                     416,910  (11,244)  1,141,281    926,761
Income tax paid                       (168,831) (151,223)  (101,630)   (71,608)
Net cash generated from/ (used)         248,079 (162,467)  1,039,651    855,153
operating activities

Net cash generated from/ (used in)      164,250 (512,165)  (392,493)  (777,683)
investing activities

Net cash used in financing 
activities                          (1,491,114) (899,834)  (356,171)   (94,126)

Net effect of exchange rate changes
on cash and cash equivalents          1,422,288  (17,635)  1,138,439    (8,627)

Net increase/ (decrease) in cash and
cash equivalents                        343,503(1,592,101) 1,429,426   (25,283)
Cash and cash equivalents at
31 March 2000                         3,032,928 4,609,371  1,947,005  1,962,236
Cash acquired with joint venture                   15,658                10,052
Cash and cash equivalents at
31 March 2001                         3,376,431 3,032,928  3,376,431  1,947,005


Accounting policies

The accounting policies are the same as those used in preparing the 31st March
2000 annual financial statements and have been prepared in accordance with IAS
29 (Financial Reporting in hyperinflationary economies).