Listed computer assembler and technology distributor Mustek has hiked its dividend per share by 40% to 28c on the back of a strong improvement in headline earnings per share (Heps) and revenue. For the year ended 30 June 2014, Mustek’s Heps rose by 38,3% to 100,7c on the back of revenue that rose by 13,4% to R4,8bn.
The strong results come on the back of an improvement in gross profit margin from 13,5% a year ago to 13,8% in the most recent reporting period.
Revenue growth was supported mainly by growth in the sale of Acer, Lenovo and Asus product ranges as well as the security range of products distributed, Mustek told shareholders.
“The group’s more conservative foreign exchange hedging policy appears to be working well and, as a result, forex losses decreased from R51,2m 2013 to R23,2m in the current year,” it said.
In notes accompanying its 2014 financial statements, Mustek said desktop computer sales are showing resilience and recovery as a result of corporate and consumer demand for larger screens and more powerful processors to accomplish sophisticated tasks which can’t be done on tablets.
Companies are increasingly adopting Windows 8.1, though many are waiting for Windows 9, with its expected renewed focus on the desktop, before upgrading.
The roll-out of fibre-to-the-home (FTTH) broadband in South Africa should also benefit Mustek, it added.
“Large-scale FTTH seems like it’s finally becoming a reality. Suburbs, municipalities and gated communities deciding to roll out FTTH themselves are stimulating the carriers into action,” it said.
“FTTH infrastructure spend will benefit Huawei, cable and fibre sales in the group. In addition, it will boost the demand on all devices — desktops, notebooks, tablets and smartphone — connected to the network. — (c) 2014 NewsCentral Media
