Mustek has issued a trading statement informing shareholders that its headline earnings for the year ended 30 June 2024 are expected to be between 70% and 80% lower than reported in the comparative period last year.
In June 2023, headline earnings per share were between 75,00 cents and 112,50 cents.
Basic earnings per share, at between 18,63 cents and 55,89 cents, will be between 85% and 95% lower than June 2023, when they were 372,61 cents.
The company attributes the difference between headline earnings and basic earnings is due to an impairment of the investment in Zaloserve (Sizwe IT Africa), which has been classified as an asset held for sale as at 30 June 2024.
It states that the operating environment for the year ended 30 June 2024 was marked by tough economic conditions and cautious market sentiment leading up to the general elections in South Africa.
Prevailing uncertainty froze corporate and government spending and the unexpected abatement of loadshedding abruptly ended the renewable energy boom, which fuelled Mustek’s growth last year.
“Reduced demand for green energy products put us in a challenging situation with surplus stock in a tough macro-economic environment with high interest rates,” according to the statement. “Accordingly, the group’s performance declined.”
Net asset value per share is expected to be between 2 770,00 cents and 2 820,00 cents, compared to 2 724,36 cents as at 30 June 2023.