Mustek has announced that basic earnings per share are up 53%, with headline earnings per share up 45%, for the six months ended 31 December 2009.
In its unaudited interim report on the period, Mustek showed that turnover decreased by 7,5% to R1,602-billion, with lower gross profit due largely to the stronger rand. Nevertheless, profit from operations increased by 66% to R70,1-million, compared to R42,2 million at the end of December 2008.
A review of the overall structure has identified various inefficiencies and duplication of functions, the company reports. The early identification and implementation of corrective action has placed Mustek ahead of the curve with respect to cost containment.
However, as thisprocess was only completed towards the end of the reporting period, the full benefit will only be achieved in the next financial reporting period.
Excluding forex losses, expenses were well controlled. Distribution, administrative and other operating expenses decreased by 3,3% and a further decrease is expected for the year to June due to the restructuring process.
An improved gross margin and better working capital management contributed to higher profits at Comztek.
Rectron`s contribution to profit attributable to equity holders of the parent was maintained due to turnover growth and a return to profitability from its Australian subsidiary.