Mustek Limited - Trading Update And Cautionary Ann
Mustek Limited - Trading Update And Cautionary Announcement
Release Date: 02/02/2004 17:15:01 Code(s): MST
MUSTEK LIMITED - TRADING UPDATE AND CAUTIONARY ANNOUNCEMENT
MUSTEK LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1987/070161/06)
Share Code: MST
ISIN Code: ZAE 000012373
("Mustek" or "the company")
TRADING UPDATE AND CAUTIONARY ANNOUNCEMENT
Shareholders of Mustek are advised that earnings for the period ended 31
December 2003 will be substantially lower ("substantially" being a decrease
equal to or greater than 30% as defined in the JSE Securities Exchange South
Africa Listings Requirements) than those of the prior comparative period.
The decrease is a result of the effect that the strengthening Rand had on the
selling prices of personal computers and computer components as well as Mustek"s
policy to take out forward cover on US dollar exposure for imports. All forward
cover contracts were valued on a mark-to-market basis at the end of December
2003 at a Rand/US dollar exchange rate of USD1=R6.58, resulting in substantial
mark-to-market losses being accounted for at 31 December 2003. Subsequent to the
period- end, Mustek disposed of the bulk of the contracts at exchange rates
between R6.98 and R7.33 to the US dollar.
The Board of Directors are of the opinion that the interim results will not
affect the company"s ability to declare and pay an interim dividend, of at least
the same amount as the prior comparative period.
Trading during January 2004 has been very positive. The first phase of the
Gauteng-on-line project, which consisted of 500 schools, was rolled out with
Mustek equipping 170 of these schools. It is expected that the remainder of the
contract for approximately 2 000 additional schools will soon be awarded. Mustek
also received orders for approximately 12 000 personal computers ("PCs") from
Central Government during January 2004 and has been successful with a tender to
supply PCs and printers to the South African Revenue Service.
Further details will be provided when Mustek publishes the interim results for
the period ended 31 December 2003, which is expected towards the end of February
2004.
As a result of the above and due to the fact that the earnings estimate has not
been reviewed and reported on by Mustek"s auditors, shareholders are advised to
exercise caution when dealing in the company"s shares until the aforementioned
interim results are published.
Midrand
2 February 2004
Sponsor
Deloitte & Touche Sponsor Services (Pty) Ltd
(Registration number 1996/000034/07)
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