MST - Mustek Limited - Trading Statement

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 Supplied by www.sharenet.co.za                     
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