JSE-listed PC distributor Mustek is focused on increasing volumes, as more sales are a driver of performance, it says.
Mustek says in a statement that revenue improved from R3.4 billion a year ago to R3.5 billion, while net income was R92.2 million, a gain on last year's R61 million.
The company says, as a result of its commitment to “optimal cash” use, which will see cash generated by operations used to fund growth and trim debt, it has declared a 17c a share dividend, up from last year's 12c.
CEO and founder David Kan says the company did not deliver a good set of results last year, so the gain in the past 12 months is off a low base. Headline earnings per share attributable to ordinary shareholders increased 54.5%, to 89.39c.
Mustek says volumes increased by about 10%, but a “significantly stronger” rand compared with the US dollar “restricted revenue growth to 2.8%”.
“Despite the stronger rand, which normally leads to downward pressure on gross profit margins, the group managed to increase its gross profit margin from 14.2% to 14.7%,” it says.
The distributor is focused on growing volumes as this “remains a driver of performance across our operations,” it says. In the past six months, it has added brands such as Acer and Lenovo to its range.
Kan says the company has a better basket and is able to serve the small and medium business segment, as well as corporates and the public sector. He adds that Mustek is continuously looking for new brands to add to its range.
During the year, Mustek bought an additional 25% of Digital Surveillance Systems for R1.9 million, as well as a 40% stake in Continuous Power Systems for a “nominal amount”. It also sold its 60% stake in Corex IT Distribution Dynamics for R9.8 million.
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