SA’s Mustek reports good year
South African-based PC assembler Mustek Limited saw revenue up 16% in the past financial year.
Mustek, with a presence in Nigeria, Kenya, Zimbabwe and Lesotho, today announced its full year financial results for the period July 2012 ending June 2013 (FY13). The Mustek Limited Group, which wholly owns the Mustek and Rectron companies, has produced financial highlights that include:
- Revenue from continuing operations up 16% to R4,072 billion, from R3,503 billion in 2012
- Cash from operations up 226% to R145.5 million, from R44,6 million in 2012
- Dividend per share up 18% to 20c, from 17c in 2012
- Net asset value per share up 9% to 762c, from 697c in 2012
“We are highly encouraged by this progressive set of results for the financial year ending June 2013. We set ourselves very clear goals at the beginning of FY13, to deliver revenue growth with enhanced efficiencies and to secure competitive, sustainable margins, while still exploring diversification in products with growth potential. I believe we have managed these goals well and I am pleased with the bold efforts displayed by our sales teams, resulting in a respectable performance of the company from a revenue perspective,” says David Kan, CEO of Mustek Ltd.
The revenue growth during this period was supported largely by the addition of the Acer and Lenovo ranges, whilst Mustek Limited expanded its basket of products with the introduction of multiple additions, including Huawei Enterprise Solutions, Asus, Miniflex’s range of fibre cables, as well as solar panels.
Hein Engelbrecht, Managing Director of Mustek Ltd, states: “We’ve had an exceptional year, considering the turbulent times the broader IT industry experienced in FY13. We believe that this coming year provides the ideal platform to carry on supporting our provision of solutions in the mobility, cloud, security (CCTV), networking and fibre arenas, continuing our emphasis on the Education, Health, Security and Solar energy industries. In FY14 we will be looking to diversify our existing offerings – focusing on increasing volumes as it remains a driver of performance across our operations. Of course this comes with the need for adaptability, to be able to respond to dynamic market changes. We are confident about the opportunities the new financial year presents.”
Looking ahead, Mustek Limited is focused on growing broad-based distribution, as well as its tablet business, including offerings from Asus, Mecer, Lenovo, Acer and Toshiba. The company will also continue to invest in key industry partnerships and solutions, exploring opportunities within the cloud computing, mobile and applications framework. Mustek will additionally be placing further emphasis on training and after sales support, advocating resellers that are able to act as trusted advisors to the end-user.
Rectron and Mustek were recently appointed as Microsoft Volume Licensing distributors – pioneering a cost-effective, flexible, and manageable way to acquire Microsoft software and cloud services. With this collaborative approach from a Group perspective, the goal is to target the market with an innovative strategy. The Group has designed an electronic tool that will serve to revolutionise the volume licencing sales process, enabling resellers to translate the complex licencing program. This will serve as a significant competitive advantage for the Mustek Group.
While the IT sector is expected to remain challenging and unpredictable, Mustek Limited believe that with its broad product offering and in-depth understanding of its value proposition, it has secured a sustainable future for the company and its stakeholders.