Mustek charges forward

Cape Town – JSE-listed ICT company Mustek [JSE:MST] reported strong full-year financial results on Wednesday.

Mustek, a leading assembler and distributor of personal computers and ICT products, announced that its revenue from continuing operations was up 13.4% to R4.76bn, from R4.20bn in 2013.

Its headline earning per share increased by 38.3% to 100.72c, from 72.85c in 2013; its dividend per share went up 40% to 28c, from 20c in 2013; and its net asset value per share increased by 12.7% to 858.67c, from 762.10c in 2013.

“We are delighted by this forward-looking set of results for the financial year ending June 2014,” said Mustek financial director Neels Coetzee. “At the beginning of FY14 we set out to deliver revenue growth, to maximise our operational efficiencies and to secure competitive, sustainable margins, while continuing to expand on the diversification of products with growth potential.”

Watch: Mustek revenue grows to R4.76bn



Sales boost

“I believe we have achieved these goals, and I’m especially pleased that our sales team have managed to improve our gross profit percentage from 13.5% to 13.8%, after a declining trend in recent years,” he said.

The revenue growth was supported by the growth its mobility and security range of products. “A key achievement to call out is the performance of Mecer, Mustek’s locally assembled brand, which constitutes 20% of the turnover, despite the decline of global desktop computing sales,” he said.

“We’ve had an exceptional year, considering the unpredictable times the wider IT industry experienced in the past financial year,” said Coetzee. “In FY15 we will be looking to further diversify our existing offerings – focusing on increasing volumes, and aiming to achieve a Gross Profit margin of 14%, as it remains a driver of performance across our operations.”

Investing in partnerships

Looking ahead, Mustek would continue to focus on growing broad-based distribution, as well as its tablet business, including offerings from Asus, Mecer, Lenovo, Acer, and Toshiba.

The company would continue to invest in key industry partnerships and solutions, exploring opportunities within the security, cabling, volume licensing and networking arenas. 

“While the IT sector is expected to remain volatile and ever-changing, Mustek believes that with its broad product offering and in-depth understanding of its value proposition, it has paved a sustainable future for the company and its stakeholders,” Coetzee said.

Rectron Australia

Rectron Australia BV was classified as a discontinued operation in June 2013, howeever management took decided not to dispose of the company.

"Rectron Australia incurred losses in the year under review, mostly arising from legal fees incurred in settling a shareholder's dispute and retrenchment costs. Prior to the change in management, the company lost a number of key distribution rights and had very limited access to higher margin products," says Mustek.

"New management was appointed effective January 2014 and managed to secure various new higher margin distribution rights in addition to regaining most of those previously lost. Through a better product mix, the company managed to return to profitability during July 2014. The board is confident the company will show a significant improvement for the 2015 financial year."

Watch: Legal battle chokes Rectron Australia



Read the full details of the FY14 financial results announcement.

 - Fin24