PC maker Mustek has bounced back from last year`s poor performance, helped by an increase in sales volumes in the six months to December.
Revenue for the period increased by 15% from R1.7 billion to R1.35 billion, despite the effect of the stronger rand on PCs and computer components.
"The rand has strengthened by 12% compared to the comparative period and this drove the average selling price of Mecer PCs down," says CEO David Kan. "Total units sold during the calendar year ending 31 December 2004 increased by 14.7% over the previous year."
The group was hurt the previous year by a combination of a strengthening rand and its policy to take out forward cover on US dollar exposure for imports.
Earnings before interest, tax, depreciation and amortisation soared from R12.69 million to R93.73 million while pre-tax profit of R78.25 million compares with a year-earlier profit of R5.89 million.
After-tax profit rose from R6.16 million to R54.65 million while headline earnings soared from 8.34c a share to 44.42c a share. An interim dividend of 30c a share has been declared.
"The ICT industry has entered into a high-growth and transformational phase," says Kan. "This is supported by consumer confidence, hardware prices which are remaining steady on the back of a stable rand, and the growing integration of computer hardware with mobile technology and home entertainment systems."
He says the finalisation and awarding of government`s seat management services contract after the end of the six months has resulted in significant orders being received from various government departments.
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