Hardware group Mustek has reported an R83.27 million net profit for the year to June, 66.3% up on the previous year`s R50.08 million profit.
Revenue for the period rose 9.6% from 2.68 billion to R2.94 billion. CEO David Kan says the increase is despite the rand being on average 9.8% stronger than in the previous year.
Earnings before interest, tax, deprecation and amortisation rose from R136.77 million to R174.86 million, while pre-tax profit was up 58% from R88.24 million to R139.41 million.
Kan says the gross profit percentage slipped from 18% to 16.1% because of bigger contributions from the international operations, which trade at lower margins than the local operations.
"The South African operations performed in line with expectation despite the effect that the stronger rand had on selling prices of PCs, components and peripherals.
"The start-up operation, Mecer Brazil, incurred a loss of R3.3 million in its first full year of operation. Revenue growth has been phenomenal. Additional management from SA has been introduced to streamline processes."
He adds that Mustek`s share of Rectron UK`s losses was 6.6 million as a result of new management making various write-offs to slow and obsolete stock as well as long outstanding accounts receivable.
Kan says the ICT industry has entered into a high-growth and transformational phase.
"This is supported by consumer confidence, hardware prices which are remaining steady on the back of a stable rand, the growing integration of computer hardware with mobile technology and home entertainment systems and the business replacement cycle."
Key opportunities are being driven by broadband technologies, education and the fact that users are replacing Y2K infrastructure purchases as products reach the end of their lifecycles.
The Mustek board has declared a dividend of 30c a share.
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