JSE-listed Mustek increased its earnings before interest, tax, depreciation and amortisation 29% under tough conditions in the six months to 31 December 2001.
CEO David Kan says Mustek is in talks with the management of Brother Business Machines to dispose of 30% of the company.
<B>Salient figures</B>
Mustek results for the six months to 31 December 2001
Figures for the year-earlier period in parentheses:
Revenue: R1.24b (R973.46m)
EBITDA: R89.04m (R68.86m)
Goodwill amortisation: R1.93m (R7.8m)
Profit before tax: R56.31m (R38.51m)
Profit after tax: R36.9m (R25.46m)
Adjusted HEPS: 41.6c (29.74c)
HEPS: 38c (29.74c)
Current assets: R1.14b (R872.21m)
Current liabilities: R733.28m (R628.73m)
Bank balances and cash: R130.32m (R83.01m)
Mustek intends to cancel the 2.14 million shares to be issued to the original investment, if the deal is concluded.
The group`s investment in Comztek was cut to 45% after a disposal to management and the issue of new shares to Comztek`s staff incentive.
Kan says an increase in operating expenses resulted from the recognition of unrealised foreign exchange losses, some of which will be recovered in the six months to June 2002.
Exceptional items totalling a negative figure of R12.43 million on the income statement consist of a one-off loss incurred by subsidiary Rectron, a loss on de-consolidating Torque, and a profit on the translation of the net monetary position of Mecer Zimbabwe.
"The once-off loss incurred by Rectron was not added back in the calculation of headline earnings, but was added back in calculating the adjusted headline earnings figure," he says.
Kan says that the coastal branches showed significant increases in revenue and profitability as a result of focused management attention, and adds that Rectron`s operating results showed a consistent improvement in both revenue and profitability.
Mustek and Rectron are trading under a cautionary announcement, and Kan says the outcome of that will be announced soon.
The group has secured longer-term fixed rate funding, the full benefits of which will be enjoyed over the period of the funding, he says.
Kan says that secured fixed rated long-term funding, improved working capital management and additional trade finance facilities position the group well to consolidate its dominant position.
"The GautengOnline.com rollout of about 62 000 PCs in 2 409 schools is expected to start during July 2002. Mecer is the principal partner in a consortium providing a full technology education solution.
"Apart from winning a portion of this contract, the potential spin-off from this is the penetration into households, which in SA is still very low compared to the rest of the world.
"The expected increases will have a very positive effect on the prospects of PC sales in southern Africa."
Share
