JSE-listed technology distributor Mustek has delivered an improved bottom line in the year to 30 June 2025, even as group revenue fell sharply in a challenging economic environment.
The company credited disciplined cost control and tighter working capital management for the rebound in profitability. The results marked a significant turnaround from the weak half-year performance to 31 December 2024.
Revenue declined 15% to R7.18-billion, down from R8.45-billion in 2024, amid a weak macro environment and infrastructure constraints.
Despite the revenue erosion, group profit before tax rose to R46.8-million (2024: R40.2-million), with net profit attributable to shareholders climbing to R38.8-million from R21.4-million. Basic earnings per share more than doubled to 71.71c (2024: 37.31c), while headline earnings per share – a measure watched closely by South African investors – increased to 72.73c from 67.13c. Management highlighted reductions in finance costs and improved working capital as key drivers of the earnings rebound.
Operating profit contracted to R179.5-million from R278.5-million, but this was offset by a R66-million swing in net finance costs and improved cash flows. Cash generated from operations surged to R687-million, compared with just R61-million a year earlier, underscoring the benefits of inventory reductions and tighter receivables management.
Novus takeover
The board declared a final dividend of 13.75c/share, almost double last year’s 7.5c payout. This marks a return to growth after the sharp cut from 77c a share in 2023.
The results come as Novus Holdings continues its mandatory offer to Mustek shareholders. Novus and its concert parties now control just under 40% of Mustek’s equity. A joint circular issued in May outlined the offer terms, though final implementation remains subject to a compliance certificate from the Takeover Regulation Panel.
Read: CyberAntix deal to bolster Mustek diversification plan
CEO Hein Engelbrecht said Mustek enters the new financial year “with cautious optimism”, pointing to a sharpened cost base, focused portfolio and healthier pipeline. While macroeconomic challenges remain, the company said its strengthened balance sheet and liquidity position provide a solid foundation for continued earnings growth. – © 2025 NewsCentral Media
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