Mustek has reported a revenue increase of 24,6% for the six months ended 31 December 2014.
During the period, headline earnings per ordinary share were up 26%, with a net asset value of 884 cents per share.
Revenue grew to R2,503-billion,, from R2,009-billion on 31 December 2013. The revenue growth was supported mainly by growth from the Huawei Enterprise Solutions division, the Microsoft Volume Licensing offering and Rectron Australia.
The gross profit percentage was marginally down from 13,9% to 13,4% mainly as a result of the lower gross profit percentage achieved by its Huawei Enterprise Solutions division and its Microsoft Volume Licensing offering. Although the gross profit percentages achieved by these new lines of business are lower, their contributions to profit are expected to continue growing.
An increase of 15,6% in distribution, administrative and other operating expenses arose mainly as a result of an investment in specialists to drive the growth in the new business lines. Distribution, administrative and other operating expenses as a percentage of revenue was 9,3%, compared to 10% a year previously.
There has been a significant improvement in Rectron Australia’s revenues and results. Although the company incurred a loss of R2,6-million for the period under review, it is a significant improvement on the R8,1-million loss suffered during the comparative period. Revenue grew to R141,3-million from R30,9-million a year before and the company expects further improvement to June 2015.
The contribution from associates increased mainly as a result of the additional attributable earnings generated from the acquisition of an effective 26% stake in Sizwe Africa IT Group, effective from 10 March 2014.
