Mustek expects bumper profit in half-year results
JSE-listed distributor of personal computers Mustek is expecting a bumper profit for the six months ended December 2020, after enduring crippling job stoppages in the same period.
The company announced yesterday in a trading update that headline earnings per share and basic earnings per share will be at least 135% higher than reported in the previous corresponding period.
“The group expects that basic earnings per share will be at least 177.94c or 135% higher than the 75.72c reported in the previous corresponding period; and headline earnings per share will be at least 178.11c or 135% higher than the 75.79c reported in the previous corresponding period,” said Mustek.
The envisaged blowout performance by Mustek was preceded by a tense strike organised by the Communication Workers Union in September.
The week-long work stoppage disrupted operations at Mustek, which forced the ICT products supplier to lockup its head office.
The company also halted deliveries and collections due to the growing tensions. CEO David Kan led the negotiations with the union during the impasse.
Key among the union’s demands was for Mustek to give workers a 30% share in the company’s profit and a 20% salary increase in the coming financial year-end.
The Mustek workers were also demanding a R3 000 housing allowance, saying: “Due to low income from Mustek, workers can no longer afford decent housing or rentals as the company keeps on imposing very low salary increases year in, year out.”
They were also demanding a provident fund.