Mustek said its operating environment was marked by tough economic conditions and cautious market sentiment leading up to the general elections in South Africa. Picture: Supplied
Mustek said yesterday its headline earnings a share (HEPS) were expected to be between 70% and 80% lower for the year to June 30 after the cessation of load shedding led to an end to the renewable energy boom that fuelled the technology distributor’s growth in the prior year.
The share price fell 8.9% to R12.29 following the release of a trading statement.
HEPS were expected to be between 75 cents and 112.50 cents compared with 374.99 cents in the 2023 year.
Basic earnings a share were expected to be between 85% and 95% lower at between 18.63 cents and 55.89 cents compared with 372.61 cents in 2023.
The difference between headline and basic earnings was due to an impairment of the investment in Zaloserve (Sizwe IT Africa), which had been classified as an asset held for sale as at June 30, 2024.
Mustek said its operating environment 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 load shedding abruptly ended the renewable energy boom, which fuelled the company’s growth last year.
Reduced demand for green energy products put the company in a challenging situation, with surplus stock in a tough macro-economic environment with high interest rates.
Net asset value per share is expected to be between 2 770 cents and 2 820 cents, compared with 2 724.36 cents as at June 30, 2023. The annual results are expected to be released on September 19.
BUSINESS REPORT
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