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Mustek announces 2007 results

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Mustek Ltd has announced recenues for the 2007 financial year of R3,35-billion and profit of R72,82-million. The group also has bank balances and cash of R369-million. 

During the year, shareholders approved a transaction whereby Mustek acquired the 34,2% of Rectron Limited that it did not own, making it a 100%-owned subsidiary at year-end.
Comztek, a 43,6%-owned joint venture of the group, increased its investment in Netshield from 31% to 51%.
Headline earnings per share have been negatively affected by losses in Mecer Brazil, share-based payments expensed, other non-operating losses, an additional provision for doubtful debts at a joint venture and a downward adjustment to the deferred tax asset as a result of the STC rate change from 12,5% to 10%. These have a combined effect of 28,2 cents per share.
The groups gorss profit margin from operations remained constant at 16,4%.
Looking forward, Mecer will pilot a pay-as-you-go (Flex-go) project with Microsoft early next year, and expects to be able target new, lower-income PC buyers as a result.
The group also expects the extension of high-speed internet access across larger sections of the country will grow the market for PCs and related equipment.
In terms of BEE, the board is currently assessing various proposals and will make an announcement as soon as a decision has been taken on its preferred BEE partners.