Mustek has announced an increase in gross profit for the six months ended 31 December 2013, from 13,2% to 14,1%.
The group’s headline earnings per ordinary share are up 33%, and it has reported a net asset value of 785 cents per share.
Revenue from continuing operations improved by 9,5% to R1 978-billion, R1 807-billion last year. The revenue growth was supported mainly by the growth in the Acer, Lenovo and Asus product ranges.
The group is also starting to see some success in its Huawei Enterprise Solutions, Security and Green Energy products and expects growing contributions to both revenue and profit going forward.
During the year, the group applied hedge accounting and separated the interest and spot elements of their forward contracts, resulting in R7-million being classified as finance costs as opposed to forex losses.
The contribution from associates decreased slightly after an unexpected once-off write-off in excess of R3-million in one of the associated companies.
Focus on optimal working capital management continues. Inventory build-up in anticipation of an improved order book in the next quarter, as well as higher exchange rates, boosted the value of inventory holdings.
Mustek’s headline earnings from continuing and discontinued operations is 32,8% higher at 42,15 cents per share and basic earnings is 31,1% higher at 41,30 cents per share.
Amid on-going industry debate around the future of the desktop, Mustek’s view, premised on on-going interactions with customers and this rapidly changing industry, is that the desktop will continue to transition into different formats based on evolving market trends and customer requirements.
“A manifestation of this is the all-in-one’ format, proving popular in the banking and public sector markets due to its lower total cost of ownership and security benefits for the large percentage of desk-bound employees in these environments,” the company states.
“We are also continuing with our research and development into new product offerings that has both potential markets and growth into the foreseeable future.”
Mustek is focusing on increasing volumes as it remains a driver of performance across operations. It believes that significant growth opportunities lie in the education, health and security industries, as well as the solar energy space.
It has also become a player in the tablet market, which it expects to be a positive revenue driver.
The group has strengthened its strategic partner network within the industry.