Information technology group Mustek (MST) boosted headline earnings per share by 33% for the year to the end of June — a period that saw the South African group successfully list 20 million shares as Taiwanese Depositary Receipts on the Taiwan Securities Exchange, raising about R100-million.
Headline earnings per share for the 12 months grew from 88,8 cents to 118,5 cents, with revenue growing from R2,3-million to R2,8-billion.
The group’s net profit for the year was up from R77,4-million to R91,8-million.
Mustek, whose core brand is Mecer, said sales volumes had remained strong for the year and operating margins had been maintained in spite of the substantial strengthening of the rand and the implementation of AC133.
“The associates performed well, with improvements in revenue and profitability, contributing R10,9-million profit before taxation,” it added.
The group also settled its long-standing tax dispute with the South African Revenue Service (Sars) by agreeing to make a payment in full and final settlement of all disputes relating to the 1991 to 2000 years of assessment.
“This resulted in an additional once-off charge of R28,2-million to the income statement. This once-off taxation charge against the current year’s income affected headline earnings per share by 30 cents per share,” the group stated.
To expand its business globally, Mustek subscribed for 51% in Mecer East Africa, an operation located in Kenya. An investment will also be made in Brazil, thereby promoting the group’s geographical footprint in Latin America, once approval has been received from the South African Reserve Bank.
Looking ahead, the group said increased growth in PC demand in Southern Africa and Africa continued to be positive.
“Mustek continues to explore opportunities, investments and partnerships in other regions, particularly in the rest of Africa and other emerging markets as part of its globalisation strategy.
“The group also anticipates accelerated growth when the government’s planned education initiatives are rolled out. Further impetus to growth will come from increased PC demand from the home-user market as computer literacy rises,” it said. – I-Net Bridge