Mustek Limited, the country’s largest assembler and one of the largest distributors of personal computers and complementary ICT products, has today announced its half year financial results for the period 1 July 2014 to 31 December 2014 (FY15). The Mustek Limited Group, which wholly owns the Mustek and Rectron companies, has produced the following financial highlights:

  • Revenue from continuing operations up 24.6% to R2,503 billion
  • Headline Earnings per share up 26.3% to 53.26c
  • Basic Earnings per share up 28.5% to 53.05c
  • Current Net asset value per share at 883.99c

“We are pleased by this progressive set of results for the financial half year ending December 2014. At the beginning of FY15 we set out to deliver growing broad-based distribution, including growth within our tablet business, whilst continuing to invest in key industry partnerships and solutions and exploring opportunities within the mobile and applications framework. I believe we are tracking well against these goals, and I’m happy to report that we still saw double digit growth in revenue in most divisions,” says Neels Coetzee, FD of Mustek Limited.

The revenue growth during this period was supported largely by Mustek Limited’s Huawei Enterprise Solutions division, its Microsoft Volume Licensing offering and Rectron Australia – where revenue grew to R141,3 million, with the company expecting to see further improvement looking to June 2015.

Contributions increased from associates mainly as a result of additional earnings generated from the acquisition of an effective 26% stake in Sizwe Africa IT Group Proprietary Limited (effective March 2014).

The company remains operationally sound, considering the volatile nature of the industry. It has a strong position within the industry, providing a broad national footprint, extensive product and service offering into the local technology market and maintains a B-BBEE level 2 rating. Central to this is the significant focus on up-skilling and investing in its staff, providing training programmes, which assist with job creation and employee empowerment.

“Desktop computers still prove a viable option for many corporations, especially within the banking and security industries,” continues Coetzee. “2014 was the year of how the consumer drove adoption, and while the consumer will still have a large influence on adoption, 2015 has been predicted as the year the enterprise begins driving adoption again, via enterprise applications and Windows 10 – creating a core experience for businesses, with a renewed emphasis on the desktop. We are also seeing demand for devices that are able to process data at fast speeds, have longer battery life, and serve a multitude of needs, where we will also be focusing on solutions including: tablets, notebooks, ultrabooks and smartphones for the remainder of the FY. We look forward to rounding off an already successful FY15,” concludes Coetzee.

Looking ahead, Mustek Limited will continue to refine its broad-based ICT distributor status, where the company expects to see further revenue and profit traction in its Microsoft Volume Licensing offering, Huawei Enterprise Solutions, CCTV Surveillance and cabling products and services.

Big Data remains an opportunity, which will be key to optimal client retention and procurement. As such, Mustek Limited will explore opportunities with strategic partners within the service and storage area, one being Lenovo’s ThinkServer offering, which will be launching in South Africa in the second quarter of 2015. In line with the new BBBEE code coming in May 2015, an increased focus on skills development will be adhered to, by doubling efforts on this front. This will add to Mustek Limited’s well established skills development training and certification offerings for current and potential employees.

The company will also continue to invest in the education and e-learning space, and is set to grow its market share in this sector over the next three to five years. Mustek Limited will also continue to provide superior customer service for client’s nationwide, living up to its ISO 20000 certification status.

Mustek Limited is well positioned to round off a successful FY, and looks forward to adapting with the industry in the years to come.

For the full details of the Half Year FY15 financial results announcement, please visit:

https://www.sharenet.co.za/v3/sens_display.php?tdate=20150225084000&seq=3

About Mustek Limited

Mustek Limited is one of the largest assembler and distributor of personal computers and complementary ICT products in South Africa. The Mustek Limited Group was established in 1987 and also includes Rectron. Mustek Limited combines the best of local assembly capabilities through its Mecer brand, with a multi-national product portfolio via a broad range of top tier brands, including: Acer, Asus, Samsung, Lenovo, Toshiba,  Brother, Microsoft Volume Licensing, Brand-Rex, Huawei, miniflex, Mustek Security Technologies and Mustek Energy, to name a few. Through its broad-based distribution strategy, Mustek Limited is focused on being the country’s ICT supplier of choice. Due to its nation-wide footprint and competitive pricing, Mustek Limited prides itself on its service offering capabilities for a wide range of technology and end-user needs. For more information about Mustek and its proven track record of solution formulation and superior technical expertise, visit: https://www.mustek.co.za.

Mustek Limited is:

Incorporated in the Republic of South Africa

Registration number 1987/070161/06

Share Code: MST

ISIN Code: ZAE000012373

For more information and details about this announcement, please contact:

Waggener Edstrom South Africa

mustek@waggeneredstrom.com

+27 11 550 5400

Nicole Orr

National Marketing Executive, Mustek Ltd
nicoleo@mustek.co.za  
+27 11 237 1246

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