Mustek revenue hit by reduced government spending

Mustek, a JSE-listed assembler and distributor of personal computers and complementary ICT products, has reported a drop in revenue for the year ended June 2017, citing reduced spending from the government sector.

The group’s revenue from continuing operations decreased by 0.8% to R5.24 billion, while profit from operations declined to R173 .6 million, from R188.8 million before.

Mustek’s headline earnings per share is 5.7% higher at 81.26 cents (2016: 76.88 cents) and basic earnings per share is 8.4% higher at 80.32 cents (2016: 74.13 cents).

The board declared a final dividend of 16 cents (2016: 15 cents) per ordinary share.

The gross profit percentage from continuing operations was marginally down from 12.9% to 12.6%, predominantly as a result of product mix, the drive to reduce inventory levels and an increase in inventory provisions, it said.

“Although the gross profit percentages achieved by products such as Huawei Enterprise Solutions and Microsoft Volume Licensing are lower, their
contributions to profit are expected to continue growing,” it said.

Read: Mustek appointed as Apple reseller for South Africa

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Mustek revenue hit by reduced government spending