| Thu 16 Feb 2012, 10:00 | | MST - Mustek Limited - Trading Statement |
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MST
MST
MST - Mustek Limited - 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 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 2011, turnover increased by 20,9% to R1,964 billion (31
December 2010: R1,625 billion) and the gross profit percentage increased to
14,7% (31 December 2010: 14,4%). Included in profit from operations is R62,9
million relating to realised and unrealised foreign exchange losses (31 December
2010: R14,7 million foreign exchange profits). A significant portion of these
losses will be recovered when the related inventory is sold and by settling
certain foreign creditors at lower levels than the R8,10 used at 31 December
2011 to revalue foreign creditors.
Mustek uses the Rand/USD spot rate at the beginning of each month to determine
its selling prices 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 September 2011, a substantial amount of
inventory is accounted for at lower levels compared to where the Rand has
depreciated to. 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 (USD 1 = R8,10). 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 shareholders are informed that, for the six months ended
31 December 2011, Mustek`s headline earnings per share is expected to be between
55% and 65% lower than the headline earnings of 36,20 cents per share of the
previous corresponding period. Basic earnings per share is expected to be
between 35% and 45% lower than the basic earnings of 36,12 cents per share of
the previous corresponding period.
Net asset value per share is expected to be between 640 cents and 650 cents.
The above information has not been reviewed or reported on by the company`s
auditors. The company`s financial results for the six months ended 31 December
2011 are expected to be published on or about 29 February 2012.
Midrand
16 February 2012
Sponsor
Deloitte & Touche Sponsor Services (Pty) Ltd
(Incorporated in the Republic of South Africa)
(Registration number 1996/000034/07)
Date: 16/02/2012 10:00:02 Produced by the JSE SENS Department.
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