On A date with Meikles Limited
Harare (January 12, 2022) – On a Date with a listed company on the Zimbabwe Stock Exchange (ZSE)
Dating is a critical stage to any investor considering to take a position on any asset class even shares.
On a Date with Meikles Limited
#1. History
1892, the Meikles brothers led by Thomas open a trading business in Masvingo.
1893, an additional store is opened in Harare with more in Bulawayo, Gweru and Mutare.
1915, Thomas opens the Meikles Hotel in Harare after 2 years of construction.
1937, Meikles is incorporated in Zimbabwe. 2 years later Thomas dies.
1996, listing on the ZSE with a secondary listing on the London Stock Exchange.
2021, Planning to unbundle its agricultural unit Tanganda Tea and list it separately.
#2. Operations
Meikles is an investment holding company.
Its units operate in these sectors:-
1. Retail
2. Hospitality
3. Property
4. Security Services
5. Agriculture
#3. Retail
51% of TM PicknPay Supermarkets is owned by Meikles 49% controlled by PicknPay Group of South Africa linked to Raymond Ackerman.
56 stores in the major cities and towns of Zimbabwe using the TM PicknPay brands.
#4. Hospitality
Victoria Falls Hotel
50-50 joint venture with African Sun to operate the hotel
The property is leased from National Railways of Zimbabwe.
Cape Grace Hotel 35% of Mentor Africa is owned by Meikles which owns 100% of the hotel.
#5. Property
Thomas Meikles Properties
The unit has a number of properties in Harare, Bulawayo, Gweru, Masvingo and Mutare.
Previously the properties were sole used by Meikles in its trading businesses such as the ceased Departmental stores.
#6. Security Services
Meikles Guard Services
The unit provides in-house and third party security guard services and electronic security services across Zimbabwe.
The main customer of the unit is TM PicknPay Supermarkets thereby directly affecting the unit.
#7. Agriculture
Tanganda Tea Company
Divided into 2 –
- Agricultural Division
Operates 5 estates in Chipinge which grow,
- Tea
- Coffee
- Avocados
- Macadamia Nuts
- Beverage Division
Blending and packaging of Tea on a plant in Mutare.
#8. Competitors
OK Zimbabwe
Choppies
Spar
Ariston Holdings
Arda’s Katiyo Tea
Eastern Highlands Plantation
Buzi Tea Company
Rainbow Tourism Group
Cresta Hospitality
Mashonaland Holdings
First Mutual Properties
Securico
Fawcett
#9. Shareholding
47.08% of Meikles is owned by Gondor Capital which is the investment vehicle of the Meikles family
9.75% is owned by Mega Market a local manufacturer of popular FMCG brands based in Mutare
8.20% controlled by Old Mutual Life Assurance.
#10. Share Price 2022
125.05 ZWL as at 12 January 2022.
YTD Gain /loss 0.00%
31,593,392,304 ZWL Market Capitalisation
125.05 ZWL Year High
125.05 ZWL Year Low
391% 2021 YTD return vs ZSE ALSI 312%
#11. Pitch
Meikles Limited has gone through a number of cycles in Zimbabwe but remaining resilient.
Unbundling of Tanganda Tea Company which has diversified its crops from Tea only to Avocado and macadamia nuts.
Working to unlock value in its properties
#12. Disposals
2020, Meikles Hotel is sold off to ASB Hospitality Zimbabwe for USD20,000,000, a subsidiary of Dubai based Albwardy Investment.
The hotel was a 5 star which boasted of 312 bed. It was a key attraction for city held meetings and conferences.
The group sold off a city centre building, Ninety Speke. Ninety Speke was once used to launch the failed wholesale business, Meikles Mega Market.
Each fortnight will be on a DATE with a company listed on the ZSE with Martin Mataga
The purpose of this thread is to have a minimum appreciation of listed firms.
Disclaimer: Do not misconstrue this thread as investment advice. DATE companies before you buy their shares.
