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MUSTEK LIMITED - Audited provisional consolidated financial results for the year ended 30 June 2016

Release Date: 31/08/2016 17:00
Code(s): MST     PDF:  
Wrap Text
Audited provisional consolidated financial results for the year ended 30 June 2016

MUSTEK LIMITED
(Incorporated in the Republic of South Africa) 
(Registration number 1987/070161/06) Share code: MST 
ISIN: ZAE000012373 (“Mustek” or “the Group”)

Audited provisional consolidated financial results for the year ended 30 June 2016

Net cash generated from operations
R175.05 million
2015: R374.02 million    

Revenue from continuing operations
4.8%                        
2016: R5.29 billion    
2015: R5.04 billion    

Net asset value per share
5.1%
2016: 1 008.08 cents    
2015: 959.00 cents   

COMMENTARY
Corporate information
Mustek is a public company incorporated and domiciled in South Africa. The main business of Mustek, its subsidiaries,
joint ventures and associates is the assembling, marketing and distribution of information communication technology
(ICT) products and services. 

Basis of preparation
The audited summarised consolidated financial information for the year ended 30 June 2016 has been prepared in
accordance with the framework concepts and measurement and recognition requirements of International Financial Reporting
Standards (IFRS), the SAICA Reporting Guides as issued by the Accounting Practices Committee and Financial Reporting
Pronouncements as issued by the Financial Reporting Standards Council, the information at a minimum required by IAS 34 
Interim Financial Reporting, the Listings Requirements of the JSE Limited and the requirements of the Companies Act of 
South Africa. The audited consolidated financial statements and this set of provisional financial information, which are 
based on reasonable judgements and estimates, have been prepared using accounting policies that comply with IFRS. These 
are consistent with those applied in the consolidated financial statements for the year ended 30 June 2015.

Auditor’s opinion
Mustek’s independent auditors, Deloitte & Touche, have issued their unmodified opinion on the Group’s annual consolidated 
financial statements and this set of summarised consolidated financial statements for the year ended 30 June 2016. The 
audit was conducted in accordance with International Standards on Auditing. The directors take full responsibility for 
the preparation of this provisional report and the financial information has been derived from the Group financial 
statements and are consistent in all material aspects with the Group financial statements. Their unmodified audit reports 
for this set of summarised consolidated financial statements and the Group annual financial statements are available for 
inspection at the company’s registered office. The auditor’s report does not necessarily report on the information 
contained in this announcement. Shareholders are therefore advised that in order to obtain a full understanding of the 
nature of the auditor’s engagement, they should obtain a full copy of the auditor’s report, together with the accompanying 
financial information from the issuer’s registered office. Any reference to future financial performance included in this 
announcement has not been reviewed or reported on by the company’s auditors.

Fair value measurement of financial instruments
Fair value measurements of financial assets and liabilities are analysed as follows:
- Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical
  assets or liabilities;
- Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that
  are observable for the asset or liability, either directly (ie as prices) or indirectly (ie derived from prices); and
- Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or
  liability that are not based on observable market data (unobservable inputs).

                                                                                    Audited       Audited    
                                                                                   year-end      year-end    
                                                                                    30 June       30 June    
                                                                                       2016          2015    
Financial assets and liabilities                                        Level          R000          R000    
Held-for-trading: Foreign currency assets                                             
These financial assets consist of foreign currency forward 
contracts and options, and are measured using discounted cash 
flows. Future cash flows are estimated based on the observable 
yield curves of forward interest rates at the end of the 
reporting period, as well as contract interest rates. 
The revaluation of these assets are included in foreign 
currency losses.                                                            2         3 059         8 179    

Held-for-trading: Foreign currency liabilities                                   
These financial liabilities consist of foreign currency 
forward contracts and options, and are measured using 
discounted cash flows. Future cash flows are estimated 
based on the observable yield curves of forward interest 
rates at the end of the reporting period, as well as contract 
interest rates. The revaluation of these assets are included 
in foreign currency losses.                                                 2        10 031         1 373     

Available-for-sale: Other investments and loans                                   
This financial asset consists of shares held in Zinox Technologies 
Limited. The inputs used to measure the fair value of this investment 
are the Group’s share of the net asset value of Zinox Technologies 
Limited. As the fair value approximates the carrying value of this 
asset, no revaluation was done during the reporting periods presented.      3        18 741        18 741

Discontinued operations and re-presentation of comparative numbers
On 11 February 2016, Rectron Holdings Limited, a wholly owned subsidiary of Mustek, has disposed of its 
100% stake in Rectron Electronics Proprietary Limited (Rectron Australia). As a result, the comparative 
statement of comprehensive income has been re-presented to include the results of Rectron Australia BV 
as part of discontinued operations.

The loss for the period from discontinued operations is as follows:

                                                                        Audited         Audited
                                                                        30 June         30 June    
                                                                           2016            2015    
                                                                           R000            R000    
Revenue                                                                 146 233         267 983    
Cost of sales                                                          (131 558)       (247 490)    
Gross profit                                                             14 675          20 493    
Other income                                                                556           2 365    
Foreign currency (losses) profits                                          (503)          1 133    
Distribution, administrative and other operating expenses               (18 937)        (27 346)    
Loss from operations                                                     (4 209)         (3 355)    
Investment revenue                                                            3              44    
Finance cost                                                               (843)         (1 402)    
Loss on disposal of discounted operation                                 (2 278)              -    
Loss before tax                                                          (7 327)         (4 713)    
Income tax benefit                                                        1 516               -    
Loss for the year                                                        (5 811)         (4 713)    
Plus loss attributable to outside shareholders                              316           2 000    
Group’s share of loss for the year from discontinued operations          (5 495)         (2 713)    

Operating results
The Group’s Revenue from continuing operations increased by 4,8% to R5,29 billion (2015: R5,04 billion).  The 
major reason for the slowdown in growth was the reduction in the spend from the Government sector.  The balance 
of the market showed signs of severe strain but both Mustek and Rectron were able to maintain if not gain 
market share.

The gross profit percentage from continuing operations reduced from 13,2% to 12,9% predominantly as a result of 
product mix, the drive to reduce inventory levels, an increase in inventory provisions and an increase in inventory 
written off.  Although the gross profit percentages achieved by products such as Huawei Enterprise Solutions and 
Microsoft Volume Licensing are lower, their contributions to profit are expected to continue growing.
 
Other income in the comparative period included an amount of R26,8 million that arose from certain disputes that 
were settled between Mustek and various parties.

The Group’s more conservative forex hedging policy proved effective, considering the sharp depreciation of the Rand 
from 30 June 2015 to 30 June 2016.  Forex losses from continuing operations, which includes the cost of forward 
points, was R11,8 million compared to R1,7 million in the comparative period.

Distribution, administrative and other operating expenses from continuing operations were well controlled, 
increasing by 4,8%.

The Group has been negatively affected by an increase in net finance charges from continuing operations from 
R58,7 million to R90,7 million after average working capital levels were well above that of the previous financial 
year.  Working capital levels have since normalised and for the year ended 30 June 2016, both inventory and 
accounts receivable are at lower levels when compared to the previous financial year.

The Group applies hedge accounting where the requirements of IAS 39 have been met to separate the interest and 
spot elements from the forward contracts, and R14,3 million (2015: R9,6 million) was classified as finance costs, 
as opposed to forex losses. 

The contribution from our associates increased mainly as a result of the earnings growth of Sizwe Africa IT Group 
Proprietary Limited. 

Discontinued operations (Rectron Australia BV) also negatively impacted earnings by R5,5m.

As a result, Mustek’s headline earnings per share is 38,5% lower at 76,88 cents (2015: 125,05 cents) and basic 
earnings per share is 40,7% lower at 74,13 cents (2015: 124,94 cents).

Cash flow
The improvement in working capital levels contributed to cash generated from operations of R175,0 million 
(2015: R374,0 million) and is an improvement of R593,7 million compared to the cash used in operations of 
R418,7 million reported at 31 December 2015.  Inventory on hand reduced by 1,6% and trade and other receivables 
reduced by 13,7% compared to the previous financial year.  Compared to 31 December 2015, inventories on hand has 
reduced by R208,9 million.  Management continues to focus on optimal working capital management as it remains a 
driver of profitability in our industry.

Transformation
Following an audit by an accredited verification agency, Mustek retained its level 2 BBBEE rating, using the ICT
sector codes.
Management has continued to meaningfully extend its initiatives in employment equity, skills development and 
corporate social investment during the period. The Group is committed to a process of further transformation and 
economic empowerment of its stakeholders, such that an acceptable balance between the operatives and commercial 
benefits of such a process can be achieved, thereby ensuring the sustainability and prosperity of the Group in a 
competitive market sector.

Board of directors
Rev Dr Vukile Mehana was appointed as non-executive chairman on 2 February 2016 in place of Dr Len Konar who 
resigned with effect from 4 December 2015. Ms Lindani Dhlamini was also appointed as independent non-executive 
director on 4 December 2015 following the resignation of Ms Thembisa Dingaan with effect from 13 October 2015.

The Board would like to thank Dr Len Konar and Ms Thembisa Dingaan for their contributions to the Board and 
wishes them success with their future endeavours.

Mr. Spencer Chen has been appointed to the Social and Ethics Committee effective 31 August 2016 in place of 
Ms. Lindi Shortt who resigned with effect from 31 August 2016.

Corporate activities
Rectron Holdings Limited, a wholly owned subsidiary of Mustek, increased its investment in Rectron Australia 
on 30 September 2015 from 50% to 100% for an amount of AU$739 062 before disposing of its entire stake on 
11 February 2016 for a total cash consideration of AU$1 059 476.

On 8 March 2016, the Group acquired a 25.1% stake in Yangtze Optics Africa Holdings Proprietary Limited (YOA) 
for a total consideration of the Rand equivalent of US$2 510 000. 50% of this amount has already been paid and 
the remaining 50% will be paid during the 2017 financial year. The other shareholders are Yangtze Optical Fibre 
and Cable Joint Stock Limited Company and Yangtze Optical Fibre and Cable Company (Hong Kong) Limited, the 
world’s largest manufacturers of optical fibre cables. YOA will be located at the Dube Trade Port in Durban 
and is expected to be fully operational by January 2017.

On 24 April 2016, the Group acquired land in Bloemfontein which is being developed for a total consideration of 
R8.2 million.

On 29 June 2016, the Group acquired an additional 35% stake in Zatophase Proprietary Limited, the company that 
owns 40% of Sizwe Africa IT Group Proprietary Limited (Sizwe). The Group’s effective shareholding in Sizwe has 
increased from 26% to 40% as a result. 

Retirement benefit plan
The Mustek Group Retirement Fund is a defined contribution fund and payments to the plan are expensed as they 
fall due. The majority of the Group’s employees belong to this fund. The Group does not provide additional 
post-retirement benefits.

Environmental, social and governance aspects
The Group subscribes to and complies in all material aspects with the Code on Corporate Governance Practices 
and Conduct as contained in the third King Report on Corporate Governance (King III).

Mustek is committed to transparent and integrated reporting in the spirit of King III and the Global Reporting
Initiative (GRI). We are accordingly continuously reviewing our corporate governance practices and are 
enhancing our internal information gathering systems to provide the quality and type of information required 
for authentically integrated annual reports.

Initiatives include the reduction in energy consumption after a target to reduce energy consumption by 20% was 
set in 2011. This target was reached through ongoing staff awareness programmes, the replacement of ICT equipment 
with energy-efficient units, installing rooftop solar panels and LED lights. These installations will pay for 
themselves in a relatively short time and significantly reduce our overall electricity demand and usage in 
addition to also demonstrating the viability of renewable energy for powering corporate infrastructure.

An Energy Management System (EnMS) based on the ISO 50001 international standard has been implemented at the 
Midrand facility to continually improve energy performance and management.

Mustek has successfully maintained its ISO 14001 certification since 2004 and has not been sanctioned or fined 
for non-compliance with environmental laws and regulations. 

Mustek has a consistent record in community support and corporate social investment (CSI). The Group focuses 
its CSI efforts on children’s needs - in particular, their education - but also supports charities, sporting 
events and community facilities.

For more than a decade, we have conducted a comprehensive HIV/Aids strategy and programme that also provides
antiretroviral drugs to HIV-positive staff.

Industry outlook
ICT spending will be driven by investments in software, IT services and mobile devices. In South Africa, 
overall hardware infrastructure will also be a big driver as a result of current market expansion.

The transition to cloud-based services has led to the Group diversifying away from just being a distributor of
traditional IT hardware. With our appointment as a Microsoft Volume Licence distributor, we now have the ability 
to market and distribute a full range of cloud services to our resellers.  This new division is driven by both 
Mustek and Rectron sales teams and with strong indications of cloud computing growth in the South African market 
we are confident of being able to provide the market with profitable and innovative products.

There is a move towards standardisation, consolidation and server virtualisation as enterprises begin to 
understand the need to simplify infrastructures. It is evident that enterprises are moving to an automated 
management phase within their infrastructure, introducing automation and orchestration within their 
environments.

Company outlook
Net finance costs should reduce in line with lower inventory levels at both Mustek and Rectron. Lower inventory 
levels should also have a positive effect on gross profit margins.

The Group will be focusing on further disposing of non-profitable and under-performing assets in order to 
increase profitability.  The disposal of Rectron Australia BV will have an immediate effect on the Group’s 
profitability as the loss of R5,5 million incurred in 2016 will not be repeated. 

Mustek will continue to refine its broad-based ICT distributor status, where we expect to see growing 
contributions to both revenue and profit going forward in our Microsoft Volume Licence offering, Huawei 
Enterprise Solutions division, sustainable energy division, CCTV surveillance division and cabling products 
and services. 

Our suite of products provides Mustek with the flexibility to switch focus to more profitable market segments.
Recognising that desktop unit sales are in decline, we can push our strong variety of entry-level, mid-level 
and aspirational tablets.

Big Data will be a focus area for Mustek going forward. We have seen significant growth and experienced great 
success in this sector with our NEC Server, NEC Storage and Fujitsu Scanner ranges.

South Africa has one of the highest rates of public investment in education in the world and the government 
spends more on education than on any other sector. Technology and e-learning as a teaching and learning tool 
and enabler has been widely accepted as a way to expedite the educational progress within our country. Mustek 
has over the last few years been investing substantially in this particular market vertical and we believe 
that we are well positioned to grow our market share over the next three to five years. The amount of interest 
shown by various provinces during the last few months is encouraging.

In conjunction with strategic partners from across the ICT industry, Mustek is well positioned for the 
forthcoming years.

Share repurchase programme
Mustek acquired 5 623 471 ordinary shares of its issued share capital on the open market for a purchase 
consideration in aggregate of R42 822 936. The general repurchase commenced on 4 September 2015 and continued 
on a day-to-day basis as market conditions allowed and in accordance with the JSE Limited (JSE) Listings 
Requirements until 7 June 2016.

The repurchase of shares will continue to be considered by the Board in conjunction with an evaluation of 
current and future funding requirements in the period to 30 June 2017, subject to obtaining shareholder 
approval at the next annual general meeting. This programme will be effected in accordance with the terms of 
the authority granted by shareholders at the annual general meeting held on 11 December 2015. It is currently 
intended that any shares purchased will be cancelled and delisted. The market will be notified in accordance 
with applicable listing rules and regulations if and when purchases are made.

Dividend
The declaration of cash dividends will continue to be considered by the board in conjunction with an evaluation 
of current and future funding requirements and opportunities to repurchase shares.  It will be adjusted to 
levels considered appropriate at the time of declaration.

Mustek’s continued commitment to optimal cash utilisation will mean that cash generated by the operations will 
be used to fund growth and reduce debt.  To this end, the board has declared a final dividend of 15 cents (2015: 
35 cents) per ordinary share for the financial year ended 30 June 2016.

Notice is hereby given that a final dividend of 15 cents per ordinary share for the year ended 30 June 2016 is 
declared, payable to shareholders recorded in the books of the company at the close of business on the record 
date appearing below.  This dividend is declared out of income reserves. The company’s income tax reference 
number is 9550081716 and the company has 98 000 000 ordinary shares in issue and ranking for dividend at the 
date of this declaration. The South African dividend tax rate is 15% and no Secondary Tax on Companies credits 
have been utilised, resulting in a net dividend of 12,75 cents per share to shareholders who are not tax 
exempt.  
 

The salient dates applicable to the final dividend are as follows:
Last day of trade cum dividend              Tuesday, 27 September 2015
First day to trade ex dividend            Wednesday, 28 September 2015
Record date                                  Friday, 30 September 2015
Payment date                                    Monday, 3 October 2015

No share certificates may be dematerialised or rematerialised between Wednesday, 28 September 2015 and Friday, 
30 September 2015, both days inclusive.

Where applicable, payment in respect of certificated shareholders will be transferred electronically to 
shareholders’ bank accounts on the payment date.  In the absence of specific mandates, payment cheques will 
be posted to certificated shareholders at their risk on the payment date.  Shareholders who have dematerialised 
their shares will have their accounts at their Central Securities Depository Participant or broker credited on 
the payment date.


Annual general meeting
The notice of the annual general meeting will be included in the integrated report that will be posted to 
shareholders in due course.


Post-balance sheet events
There have been no significant events subsequent to year-end up until the date of this report that require 
adjustment to or disclosure in these annual financial statements.

On behalf of the Board of directors        Neels Coetzee Financial Director               31 August 2016
David Kan Chief Executive Officer         (preparer of provisional Group results)         Midrand
   

   
SUMMARISED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

                                                                          30 June             30 June        
                                                                             2016                2015    
                                                                             R000                R000
                                                                                        (Re-presented)
Continuing operations                                                                                    
Revenue                                                                 5 286 384           5 042 119    
Cost of sales                                                          (4 605 634)         (4 376 692)    
Gross profit                                                              680 750             665 427    
Other income                                                                3 465              35 461    
Foreign currency losses                                                   (11 784)             (1 680)    
Distribution, administrative and other operating expenses                (483 603)           (462 351)    
Profit from operations                                                    188 828             236 857    
Investment revenues                                                        19 278              17 319    
Finance costs                                                            (109 950)            (76 014)    
Share of profit of associates                                              15 352              10 813    
Profit before tax                                                         113 508             188 975    
Income tax expense                                                        (28 753)            (50 155)    
Profit for the year from continuing operations                             84 755             138 820    
Discontinued operations                                                                                  
Loss for the year from discontinued operations                             (5 811)             (4 713)    
Profit for the year                                                        78 944             134 107    
Other comprehensive income                                                                               
Exchange profits on translation of foreign operations                       4 262                 540    
Other comprehensive income for the year, net of tax                         4 262                 540    
Total comprehensive income for the year                                    83 206             134 647    
Profit attributable to:                                                                                  
Owners of the parent                                                       74 630             132 720    
Non-controlling interest                                                    4 314               1 387    
                                                                           78 944             134 107    
Total comprehensive income attributable to:                                                              
Owners of the parent                                                       78 590             133 840    
Non-controlling interest                                                    4 616                 807    
                                                                           83 206             134 647    
Earnings and dividend per share (cents)                                                                  
Weighted number of ordinary shares in issue                           100 674 409         106 228 765    
Ordinary shares in issue                                               98 000 000         103 623 471    
Dividend per ordinary share - paid                                          35.00               28.00    
Dividend per ordinary share - proposed                                      15.00               35.00    
From continuing and discontinued operations                                                              
Headline earnings per ordinary share                                        76.88              125.05    
Basic earnings per ordinary share                                           74.13              124.94    
From continuing operations                                                                               
Headline earnings per ordinary share                                        80.07              127.60    
Basic earnings per ordinary share                                           79.59              127.49    
From discontinued operations                                                                             
Headline loss per ordinary share                                            (3.20)              (2.55)    
Basic loss per ordinary share                                               (5.46)              (2.55)    
Reconciliation between basic and headline earnings                                                       
Basic earnings attributable to owners of the parent                        74 630             132 720    
Group’s share of loss on disposal of property, plant and equipment            488                 118    
Group’s share of loss from disposal of shares in subsidiary                 2 278                   -    
Headline earnings from continuing and discontinued operations              77 396             132 838    
Plus Group’s share of loss for the year from discontinued operations        3 217               2 713    
Headline earnings from continuing operations                               80 613             135 551    
Basic earnings attributable to owners of the parent                        74 630             132 720    
Plus Group’s share of loss for the year from discontinued operations        5 495               2 713    
Basic earnings from continuing operations                                  80 125             135 433    
Net asset value per share (cents)                                        1 008.08              959.00    



SUMMARISED CONSOLIDATED STATEMENT OF FINANCIAL POSITION                                      
                                                                 30 June          30 June    
                                                                    2016             2015    
                                                                    R000             R000    
ASSETS                                                                                       
Non-current assets                                                                           
Property, plant and equipment                                    152 458          174 709    
Intangible assets                                                 67 059           62 843    
Investments in associates                                         84 848           61 478    
Other investments and loans                                       67 809           77 653    
Deferred tax asset                                                17 312           29 593    
                                                                 389 486          406 276    
Current assets                                                                               
Inventories                                                    1 111 929        1 129 663    
Inventories in transit                                            95 753          206 035    
Trade and other receivables                                    1 074 823        1 246 139    
Foreign currency assets                                            3 059            8 179    
Tax assets                                                        14 219            2 059    
Bank balances and cash                                           383 613          459 832    
Short-term loans                                                  12 676                -    
                                                               2 696 072        3 051 907    
TOTAL ASSETS                                                   3 085 558        3 458 183    
EQUITY AND LIABILITIES                                                                       
Capital and reserves                                                                         
Ordinary stated capital                                           50 531           93 354    
Retained earnings                                                927 669          894 636    
Non-distributable reserve                                            809              809    
Foreign currency translation reserve                               8 909            4 949    
Equity attributable to owners of the parent                      987 918          993 748    
Non-controlling interest                                            (581)          19 268    
Total equity                                                     987 337        1 013 016    
Non-current liabilities                                                                      
Long-term borrowings                                                 499           23 127    
Deferred tax liabilities                                           4 504            4 576    
Deferred income                                                   12 632           15 627    
                                                                  17 635           43 330    
Current liabilities                                                                          
Short-term borrowings                                                555            2 687    
Trade and other payables                                       1 670 595        2 011 195    
Foreign currency liabilities                                      10 031            1 373    
Deferred income                                                   19 284           22 238    
Tax liabilities                                                    2 408            2 595    
Bank overdrafts                                                  377 713          361 749    
                                                               2 080 586        2 401 837    
Total liabilities                                              2 098 221        2 445 167    
TOTAL EQUITY AND LIABILITIES                                   3 085 558        3 458 183    
                                                               


SUMMARISED CONSOLIDATED CASH FLOW STATEMENT                                                  
                                                                30 June           30 June    
                                                                   2016              2015    
                                                                   R000              R000    
OPERATING ACTIVITIES                                                                         
Cash receipts from customers                                  5 563 726         4 902 999    
Cash paid to suppliers and employees                         (5 388 858)       (4 528 976)    
Net cash from operations                                        175 047           374 023    
Investment revenues received                                     19 281            17 364    
Finance costs paid                                             (110 793)          (77 416)    
Dividends paid                                                  (35 605)          (29 871)    
Income taxes paid                                               (34 697)          (29 329)    
Net cash from operating activities                               13 233           254 771    
Net cash used in investing activities                           (56 949)          (46 726)    
Net cash (used in) from financing activities                    (32 503)           48 624    
Net (decrease) increase in cash and cash equivalents            (76 219)          256 669    
Cash and cash equivalents at the beginning of the year          459 832           203 163    
Cash and cash equivalents at the end of the year                383 613           459 832    
                                                                                             



SUMMARISED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
                                        Ordinary                              Non-      Foreign currency      Attributable             Non-            
                                          stated       Retained      distributable           translation      to owners of      controlling               
                                         capital       earnings            reserve               reserve        the parent         interest            Total    
                                            R000           R000               R000                  R000              R000             R000             R000    
                                                                                                                                                                
Balance at 30 June 2014                  119 627        791 787                809                 3 829           916 052           18 461          934 513    
Net profit for the year                        -        132 720                  -                     -           132 720            1 387          134 107    
Other comprehensive income                     -              -                  -                 1 120             1 120             (580)             540    
Dividends paid                                 -        (29 871)                 -                     -           (29 871)               -          (29 871)    
Buy back of shares                       (42 491)             -                  -                     -           (42 491)               -          (42 491)    
Share capital issued                      16 218              -                  -                     -            16 218                -           16 218    
Balance at 30 June 2015                   93 354        894 636                809                 4 949           993 748           19 268        1 013 016    
Net profit for the year                        -         74 630                  -                     -            74 630            4 314           78 944    
Other comprehensive income                     -              -                  -                 3 960             3 960              302            4 262    
Dividends paid                                 -        (35 605)                 -                     -           (35 605)               -          (35 605)    
Buy back of shares                       (42 823)             -                  -                     -           (42 823)               -          (42 823)    
Acquisition of additional 
shareholding in a controlled entity            -              -                  -                     -                 -          (24 465)         (24 465)    
Premium on acquisition of additional 
shareholding in a controlled entity            -         (5 992)                 -                                  (5 992)               -           (5 992)    
Balance at 30 June 2016                   50 531        933 661                809                 8 909           987 918             (581)         987 337    
                                                                                                                                                                



SUMMARISED SEGMENT ANALYSIS
                                       Total                      Mustek                         Rectron                      Group                    Eliminations
                              30 June       30 June        30 June       30 June        30 June        30 June        30 June        30 June        30 June      30 June
                                 2016          2015           2016          2015           2016           2015           2016           2015           2016         2015
                                 R000          R000           R000          R000           R000           R000           R000           R000           R000         R000
Business segments                              (Re-                         (Re-
                                          presented)                   presented)
Revenue                     5 286 384     5 042 119      3 274 542     3 246 918      2 341 781      2 132 376              -              -       (329 939)    (337 175)
EBITDA*                       217 645       259 003        128 690       181 057         97 092         71 220         (8 137)         6 726              -            -
Depreciation and 
amortisation                  (28 817)      (22 146)       (20 867)      (17 608)        (7 950)        (4 538)             -              -              -            -
Profit (loss) 
from operations               188 828       236 857        107 823       163 449         89 142         66 682         (8 137)         6 726              -            -
Investment revenues            19 278        17 319         10 395         9 102          6 187          8 629          9 268          6 160         (6 572)      (6 572)
Finance costs               (109 950)       (76 014)       (66 591)      (45 383)       (43 359)       (30 992)        (6 572)        (6 211)         6 572        6 572
Share of profit of 
associates                     15 352        10 813              -             -              -              -         15 352         10 813              -            -
Profit before tax             113 508       188 975         51 627       127 168         51 970         44 319          9 911         17 488              -            -
Income tax expense            (28 753)      (50 155)       (13 680)      (33 895)       (14 756)       (12 652)          (317)        (3 608)             -            -
Profit for the year 
from continuing operations     84 755       138 820         37 947        93 273         37 214         31 667          9 594         13 880              -            -
Discontinued operations
Loss for the year from 
discontinued operations        (5 811)       (4 713)             -             -         (5 811)        (4 713)             -
Profit for the year            78 944       134 107         37 947        93 273         31 403         26 954          9 594         13 880              -            -
Attributable to:
Owners of the parent           74 630       132 720         37 947        93 273         31 719         28 954          4 964         10 493              -            -
Non-controlling interest        4 314         1 387              -             -           (316)        (2 000)         4 630          3 387              -            -
                               78 944       134 107         37 947        93 273         31 403         26 954          9 594         13 880              -            -
* Earnings before interest, taxation, depreciation and amortisation.


                                                                                                                         Mustek Technology   
                                         Total                    South Africa              Mustek East Africa                (Taiwan)              Rectron Australia
                                30 June      30 June        30 June         30 June        30 June      30 June      30 June          30 June      30 June       30 June 
Geographical segments              2016         2015           2016            2015           2016         2015         2016             2015         2016          2015
                                   R000         R000           R000            R000           R000         R000         R000             R000         R000          R000
                                                                               (Re-                                                      (Re-                       (Re-
                                                                          presented)                                                presented)                 presented)
Revenue                       5 286 384    5 042 119      5 214 394       4 992 500         51 761       49 481       20 229              138            -             -
Profit (loss) before tax        113 508      188 975        108 758         186 027         (4 528)      (1 668)       9 278            4 616            -             -
Income tax (expense) benefit    (28 753)     (50 155)       (28 418)        (50 110)         1 473          740       (1 808)            (785)           -             -
Profit (loss) for the year   
from continuing operations       84 755      138 820         80 340         135 917         (3 055)        (928)       7 470            3 831            -             -
Discontinued operations
Loss for the year from       
discontinued operations          (5 811)      (4 713)             -               -              -            -            -                -       (5 811)       (4 713
Profit (loss) for the year       78 944      134 107         80 340         135 917         (3 055)        (928)       7 470            3 831       (5 811)       (4 713)
Attributable to:
Owners of the parent             74 630      132 720         75 710         131 817         (3 055)        (928)       7 470            3 831       (5 495)       (2 000)
Non-controlling interest          4 314        1 387          4 630           5 349              -            -            -                -         (316)       (3 962)
                                 78 944      134 107         80 340         135 917         (3 055)        (928)       7 470            3 831       (5 811)       (4 713)



CORPORATE INFORMATION: 

Company Secretary: 
Sirkien van Schalkwyk, 
1 Carlsberg, 430 Nieuwenhuyzen Street, 
Erasmuskloof Extension 2, 0181. 

PO Box 4896, 
Rietvalleirand, 
0174. 

Telephone: +27 (0) 12 751 6000. 

Transfer secretaries: 
Computershare Investor Services Proprietary Limited, 
70 Marshall Street, Johannesburg, 2001. PO Box 61051, 
Marshalltown, 2107, 
South Africa. 
Telephone: (011) 370-5000. 

Registered office: 
322 15th Road, Randjespark, Midrand, 1685. 

Postal address: 
PO Box 1638, Parklands, 2121. 

Contact numbers: 
Telephone: +27 (0) 11 237-1000 
Facsimile: +27 (0) 11 314-5039 
Email: ltd@mustek.co.za. 

Sponsor: 
Deloitte & Touche Sponsor Services Proprietary Limited.


www.mustek.co.za

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