|
Mustek Limited - Financial Report
Mustek Limited
Incorporated in the Republic of South Africa
(Registration Number 1987/070161/06)
Share Code: MST
ISIN: ZAE000012373
("Mustek")
Consolidated Income Statement
Audited Audited
30 June 30 June
2002 2001
R 000 R 000
Revenue 2 825 776 2 127 241
Cost of sales (2 346 117) (1 791 205)
Gross profit 479 659 336 036
Operating expenses (257 834) (185 100)
EBITDA * 221 825 150 936
Goodwill amortisation (6 793) (25 203)
Depreciation (15 273) (16 734)
Profit from operations 199 759 108 999
Net finance costs (24 649) (33 829)
Exceptional items (20 981) (13 612)
Income from associates 642 -
Profit before tax 154 771 61 558
Income tax expense (63 559) (34 030)
Profit after tax 91 212 27 528
Minority interest (13 849) (9 012)
Net profit for the year 77 363 18 516
* EBITDA - earnings before
interest, taxation,
depreciation and
amortisation
Number of shares in issue 90 912 333 100 114 533
Weighted average number of 98 257 129 100 114 533
shares in issue
Headline earnings per issued 105,86 55,98
ordinary share (cents)
Basic earnings per issued 85,10 18,49
ordinary share (cents)
Headline earnings per 97,95 55,98
ordinary share (cents)
Basic earnings per ordinary 78,74 18,49
share (cents)
Fully diluted headline 92,57 54,85
earnings per ordinary share
(cents)
Fully diluted basic earnings 74,41 18,12
per ordinary share (cents)
2002 2001
Headline Adjust- Basic Headline Adjust- Basic
earnings ments earnings earnings ments earnings
Earnings
per share
(cents)
Continued 111,30 (6,91) 104,39 69,98 (24,22) 45,76
core
business
Training - - - 1,37 (0,96) 0,41
operations
Technology (4,30) - (4,30) (14,09) - (14,09)
investments
Exceptional (9,05) (12,30) (21,35) (1,28) (12,31) (13,59)
items
97,95 (19,21) 78,74 55,98 (37,49) 18,49
Consolidated Balance Sheet
Audited Audited
30 June 30 June
2002 2001
R 000 R 000
ASSETS
Non-current assets 185 678 177 115
Property, plant and equipment 39 706 39 252
Goodwill 3 475 11 247
Development costs 7 743 7 506
Investments in associates 71 352 60 063
Other investments and loans 52 602 41 804
Deferred tax asset 10 800 17 243
Current assets 1 030 024 819 357
Inventories on hand 449 100 313 375
Inventories in transit 44 415 47 149
Trade and other receivables 307 302 349 417
Taxation - 33
Bank balances and cash 229 207 109 383
TOTAL ASSETS 1 215 702 996 472
EQUITY AND LIABILITIES
Capital and reserves 363 260 327 053
Share capital 727 801
Share premium 38 190 74 968
Accumulated profits 282 557 205 194
Other reserves 41 786 46 090
Minority interest 52 214 38 914
Non-current liabilities 167 442 10 585
Interest bearing long-term borrowings 167 027 9 544
Interest free long-term borrowings 313 313
Deferred tax liabilities 102 728
Current liabilities 632 786 619 920
Foreign exchange contract liability 14 864 -
Trade and other payables 522 535 411 845
Interest bearing short-term borrowings 12 031 136 608
Interest free short-term borrowings 2 474 5 034
Deferred income 11 046 2 538
Tax liabilities 31 901 24 515
Bank overdrafts 37 935 39 380
TOTAL EQUITY AND LIABILITIES 1 215 702 996 472
Consolidated Statement of Changes in Equity
Ordinary Share Accumula- Other Translation Total
share premium ted reserves reserves R 000
capital R 000 profits R 000 R 000
R 000 R 000
Balance at 315 767
30 June
2000 801 74 968 195 181 43 166 1 651-
Net profit 18 516
for the
year - - 18 516 - -
Realised - - (8 503) 8 503 - -
profits on
disposal of
investments
Net foreign - - - - (7 230) (7 230)
currency
translation
reserve -
foreign
entities
Balance at
30 June
2001 801 74 968 205 194 51 669 (5 579) 327 053
Net profit
for the
year - - 77 363 - - 77 363
Share 3 472 - - - 475
issued in
terms of
option
scheme
Share buy- (60) (25 016) - - - (25 076)
back
Cancella- (17) (12 234) - - - (12 251)
tion of
shares on
disposal of
shares in
subsidiary
Net foreign - - - - (4 304) (4 304)
currency
translation
reserve -
foreign
entities
Balance at 727 38 190 282 557 51 669 (9 883) 363 260
30 June
2002
Other reserves comprise of net realised profits on disposal of investments.
The current year net foreign currency translation reserve includes a foreign
currency translation reserve for Zimbabwe amounting to R5,394 million (2001:
R7,284 million).
Consolidated Cash Flow Statement
Audited Audited
30 June 30 June
2002 2001
R 000 R 000
Cash receipts from customers 2 788 784 2 081 769
Cash paid to suppliers and employees (2 581 557) (1 875 226)
Net cash from operations 207 227 206 543
Net finance costs (24 649) (33 829)
Dividends paid by subsidiary (3 636) -
Income taxes paid (58 002) (24 139)
Net cash from operating activities 120 940 148 575
Net cash used in investing activities (54 739) (29 821)
Net cash from (used in) financing 54 459 (106 448)
activities
Net increase in cash and cash 120 660 12 306
equivalents
Cash and cash equivalents at beginning 109 383 104 275
of the year
Effect of foreign exchange rate changes (836) (7 198)
Cash and cash equivalents at end of the 229 207 109 383
year
Segment analysis
Business segments
Mecer Rectron Brother Comztek * Training Investments
2002 2002 2002 2002 2002 2002
R 000 R 000 R 000 R 000 R 000 R 000
Revenue 1 705 727 740 530 243 838 296 670 - -
EBITDA 124 359 59 457 30 120 7 889 - -
Goodwill - - - - - (6 793)
amortisa-
tion
Deprecia- (10 237) (4 110) (136) (790) - -
tion
Profit 114 122 55 347 29 984 7 099 - (6 793)
(loss)
from
operations
Net (16 052) (5 349) 3 515 (2 543) - (4 220)
finance
(costs)
income
Exceptio- 1 046 (9 940) - - - (12 087)
nal items
Income - 1 073 - 1 177 - (1 608)
from
associates
Profit 99 116 41 131 33 499 5 733 - (24 708)
(loss)
before tax
Taxation (33 932) (14 819) (13 057) (1 751) - -
Profit 65 184 26 312 20 442 3 982 - (24 708)
(loss)
after tax
Minority 97 (12 117) (1 829) - - -
interest
Net profit 65 281 14 195 18 613 3 982 - (24 708)
(loss) for
the year
Eliminations Total
2002 2002
R 000 R 000
Revenue (160 989) 2 825 776
EBITDA - 221 825
Goodwill - (6 793)
amortisation
Depreciation - (15 273)
Profit (loss) - 199 759
from
operations
Net finance - (24 649)
(costs)
income
Exceptional - (20 981)
items
Income from - 642
associates
Profit (loss) - 154 771
before tax
Taxation - (63 559)
Profit (loss) - 91 212
after tax
Minority - (13 849)
interest
Net profit - 77 363
(loss) for
the year
* Comztek`s results have been consolidated for 10 months and were
equity accounted for 2 months
Mecer geographical segments
Total South Zimbabwe Eliminations
R 000 Africa R 000 R 000
R 000
Revenue 1 705 727 1 779 339 20 122 (93 734)
EBITDA 124 359 122 458 1 901 -
Goodwill - - - -
amortisation
Depreciation (10 237) (10 188) (49) -
Profit from 114 122 112 270 1 852 -
operations
Net finance (16 052) (16 803) 751 -
(costs)
income
Exceptional 1 046
items 1 046 - -
Profit before 99 116 95 467 3 649 -
tax
Taxation (33 932) (32 729) (1 203) -
Profit after 2 446
tax 65 184 62 738 -
Minority 97 97 - -
interest
Net profit 65 281 62 835 2 446 -
for the year
1. Audit report
The consolidated results for the year have been audited by Deloitte & Touche
and Henry KH Pon & Co and their unqualified audit report is available for
inspection at the company`s registered office.
2. Accounting policies
The accounting policies at 30 June 2002 are consistent with those applied at
30 June 2001 and are in accordance with South African Generally Accepted
Accounting Practice.
In the next financial year, AC 133 - Financial Instruments - Recognition and
measurement will be effective, and the company shall comply with its
requirements.
3. Corporate activities
Shareholders approved the listing of Depository Receipts on the Taiwan Stock
Exchange subject to certain conditions. This is scheduled to take place
during the next financial year.
Secured a USD 24,5 million trade finance facility with 120 day terms.
Tradeselect 38 (Pty) Ltd. a wholly owned subsidiary of Mustek acquired the
minorities shareholding (excluding key Rectron executives) in Rectron and
delisted Rectron.
Management of Brother Business Machines acquired 30% of the company. Mustek
cancelled 2 140 283 shares that were to be issued to acquire this part of the
total investment.
Mustek`s investment in Comztek reduced to approximately 45% after a
subscription agreement was entered into by management and the issue of new
shares to that company`s staff incentive trust.
R160 million long-term funding at a fixed rate of 11,88% for 5 years, raised
through a securitisation transaction, achieved with an AA rating.
The disposal of Mustek Training and Development (Pty) Ltd (previously known
as Torque 42 (Pty) Ltd) took place early in the financial year.
4. Post balance sheet date events
The group disposed of 50% of its shareholding and loans in Preworx, Surecom
and Wavetrend for USD 3 million, subject to the fulfillment of certain
conditions.
Mustek subscribed for 40% of the equity in Gijima Support Services (Pty) Ltd
for an amount of R7.2 million. Gijima has been awarded an initial 3 year
service contract with Central Government to maintain all its IT equipment.
An additional 5 948 055 shares were bought back on the open market, reducing
the number of issued shares to 84 964 278.
Mustek is currently negotiating a management buy-out of Mustek Zimbabwe
Private Ltd.
5. Review of trading results
Group revenue increased by 33% to R2,825 billion.
Improved gross and operating margins.
EBITDA up by 47% under tough trading conditions.
Focus on working capital management and lower fixed rate funding resulted in
a reduction of net finance costs by 27%.
Exceptional items mainly consist of a once-off transaction loss incurred by
Rectron, losses on de-consolidating Torque, loss on disposal of 30% stake in
Brother and the impairment of investment loans.
Headline- and attributable- earnings per share, up by 75% and 326 %
respectively.
R 207 million cash generated from operations.
6. Core business
Mustek`s leading Mecer brand continued to dominate the Southern African PC
market for the eleventh consecutive year. Mecer will continue its drive to
capture more market share in new market sectors, while maintaining margins.
Mecer`s strong corporate and public market strategy has resulted in several
significant multi-million Rand deals being awarded. These market sectors
will continue to be a strong focus for the group going forward.
A number of export initiatives have been implemented by structuring a focused
division and appointing selected dealers in various African countries. The
goal is to increase market penetration significantly in the years ahead.
All divisions, subsidiaries and associates showed a commendable improvement
in both revenue and profitability as a result of focused management and cost
control.
7. Future prospects
Focused and improved working capital management with secured fixed rate long
term funding, positions the group well to consolidate and extend its dominant
position going forward.
Forecasted growth in PC demand in Southern Africa and Africa remains
positive.
Growth in PC demand should accelerate when government initiatives around
education start to roll out in the near future. These initiatives will not
only be a boost for PC sales in Southern Africa, but increased computer
literacy, which will also result in increased demand from the home-user
market.
Corporates, government, parastatals and exports will be the growth areas for
the group in the future.
8. Dividends
No dividends have been declared for the period under review. However, the
directors have reviewed this policy and in future, will distribute a minimum
of 20% of attributable profits as dividends, subject to all statutory
requirements being adhered to.
9. Directors
Mdu Gama was appointed as a non-executive director of Mustek Limited on 15
August 2002.
10. Effective tax rate
The company`s effective tax rate of 41,1% (2001: 55,3%) has been impacted by
the inclusion of certain once-off items this year. Going forward, the
company`s effective tax rate should approximate the statutory rate.
11. Contingent liability
The company is currently in a dispute with the South African Revenue Services
relating to the 1991 to 1998 years of tax assessment. In accordance with
senior legal counsel`s opinion, the company has objected to the assessments
and has lodged an appeal. In the unlikely event that the appeal is not
successful, an estimated amount of R16 million (including interest) may be
payable.
12. Corporate Information
Website: www.mustek.co.za
www.mecer.co.za
Company secretary Transfer secretary
Debbie Tam Computershare Investor Services Limited
Registered address
322, 15th Road, Randjespark, Midrand, 1685, Republic of South Africa.
Postal address
P.O. Box 1638. Parklands, 2121
Sponsor
Exchange Sponsors
39 First Road
Hyde Park
2196
On behalf of the board of directors
David C. Kan Hein Engelbrecht
Chief Executive Officer Financial Director
Date: 30/08/2002 05:15:00 PM Produced by the JSE SENS Department
| Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information. | |||||||||||||
| Other Profile Group sites: FundsData Online (unit trust data) | Profile Group corporate site | |||||||||||||
| [ Terms of Use | Privacy Policy | PAIA manual | FAQs/Help | Site Map | © Copyright Reserved 2026 ] | |||||||||||||
|
|||||||||||||
