PC group Mustek achieved an 18.6% increase in net profit for the year to 30 June despite just a 5.3% rise in revenue. The group has declared a final dividend of 25c a share.
<B>Salient figures</B>
Mustek results for the year to 30 June 2003;
Previous year`s figures in parentheses, move in square brackets:
Revenue: R2.98b (R2.83b) [+5%]
EBITDA: R234.48m (R224.81m) [+4%]
Income from associates: R10.92m (R0.64m)
Profit before tax: R195.5m (R154.77m) [+26.3%]
Net profit: R91.75m (R77.36m) [+18.6%]
HEPS: 118.65c (88.88c) [+33%]
EPS: 97.2c (78.74c) [+23%]
Current assets: R1.25b (R1.03b)
Bank balances and cash: R433.9m (R229.21m)
Current liabilities: R671.01m (R632.79m)
Net cash from operating activities: R166.55m (R120.94m)
CEO David Kan says operating margins were maintained despite the strengthening of the rand and the implementation of the new accounting standard, AC133.
During the year Mustek settled its long-running tax dispute with the South African Revenue Service by agreeing to make a payment in full and final settlement of all disputes relating to the 1991 to 2000 years of assessment.
This led to an additional one-off tax charge of R28.2 million, affecting headline earnings per share by 30c a share.
After the year end, Mustek acquired 51% of Kenyan-based Mecer East Africa and is also planning to make an investment in Brazil once the South African Reserve Bank grants its approval.
Kan says the group is continuing to explore opportunities, particularly in the rest of Africa and other emerging markets as part of its globalisation strategy.
"The group also anticipates accelerated growth when the government`s planned education initiatives are rolled out. Further impetus to growth will come from increased PC demand from the home user market as computer literacy rises."
The Mustek share was trading at 700c on the JSE this morning, up 40c or 6% from yesterday`s close.
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