| Thu 19 Feb 2009, 17:02 | | MST - Mustek - Trading Update And Trading Statement |
|
MST
MST
MST - Mustek - Trading Update And Trading Statement
MUSTEK LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1987/070161/06)
Share code: MST
ISIN: ZAE000012373
("Mustek" or "the company")
TRADING UPDATE AND TRADING STATEMENT
In terms of the JSE Limited`s Listings Requirements, companies are required to
publish a trading statement as soon as they are reasonably certain that the
financial results for the current reporting period will be more than 20%
different than that of the previous corresponding period.
In light of the above, Mustek`s shareholders are informed that, for the period
ended 31 December 2008, turnover increased by 11,6% to R1,732 billion compared
to the previous corresponding period. The gross profit percentage increased to
18,6% (31 December 2007: 16,4%) and the operating margin is projected at 2,4%
(31 December 2007: 5,5%). Included in operating profit is R84,7 million
relating to realised and unrealised foreign exchange losses (31 December 2007:
R8,1 million foreign exchange profits). The majority of these losses have been
recovered through higher selling prices during the period under review, as
confirmed by the higher gross profit margins. Approximately R21 million is
expected to be recovered during the subsequent period.
Mustek uses the Rand/USD spot rate at the beginning of the month to determine
its selling price with adjustments made during the month should the exchange
rate change substantially. As a result of the sharp and sudden depreciation of
the Rand against the USD during October 2008, a substantial amount of inventory
is accounted for at lower levels compared to where the Rand has depreciated to.
This results in higher gross profit percentages as Mustek recovers foreign
exchange losses through higher selling prices. Accounting standards does not
allow the fair valuation of inventory, but require the corresponding foreign
accounts payable to be stated at the closing spot rate. As long as this is the
case and the Rand remains as volatile as it currently is, reported earnings will
remain in line with the volatilities of the Rand.
As a result, Mustek`s headline earnings per share is expected to be between 35%
and 45% lower than the restated headline earnings of 36,22 cents per share of
the previous corresponding period. Basic earnings per share is expected to be
between 40% and 50% lower than the restated basic earnings of 38,25 cents per
share of the previous corresponding period.
Headline and basic earnings per share adjusted for foreign exchange losses
expected to be recovered, is expected to be between 32 and 38 cents per share.
Net asset value per share is expected to be between 500 cents and 510 cents.
The above information has not been reviewed or reported on by the company`s
auditors. The company`s interim results for the period ended 31 December 2008
are expected to be published on or about 27 February 2009.
Midrand
19 February 2009
Sponsor
Deloitte & Touche Sponsor Services (Pty) Ltd
(Incorporated in the Republic of South Africa)
(Registration number 1996/000034/07)
Date: 19/02/2009 17:02:02 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
