Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News

      South African AI energy start-up in R32m funding round

      17 June 2025

      New platform helps homeowners avoid delays in property sales

      17 June 2025

      Vodacom CEO Joosub bags R71m in pay – but taxman will take a big cut

      17 June 2025

      Meta bets $72-billion on AI – and investors love it

      17 June 2025

      Major rift opens between Microsoft and OpenAI

      17 June 2025
    • World

      Trump Mobile dials into politics, profit and patriarchy

      17 June 2025

      Samsung plots health data hub to link users and doctors in real time

      17 June 2025

      Yahoo tries to make its mail service relevant again

      13 June 2025

      Qualcomm shows off new chip for AI smart glasses

      11 June 2025

      Trump tariffs to dim 2025 smartphone shipments

      4 June 2025
    • In-depth

      Grok promised bias-free chat. Then came the edits

      2 June 2025

      Digital fortress: We go inside JB5, Teraco’s giant new AI-ready data centre

      30 May 2025

      Sam Altman and Jony Ive’s big bet to out-Apple Apple

      22 May 2025

      South Africa unveils big state digital reform programme

      12 May 2025

      Is this the end of Google Search as we know it?

      12 May 2025
    • TCS

      TechCentral Nexus S0E1: Starlink, BEE and a new leader at Vodacom

      8 June 2025

      TCS+ | The future of mobile money, with MTN’s Kagiso Mothibi

      6 June 2025

      TCS+ | AI is more than hype: Workday execs unpack real human impact

      4 June 2025

      TCS | Sentiv, and the story behind the buyout of Altron Nexus

      3 June 2025

      TCS | Signal restored: Unpacking the Blue Label and Cell C turnaround

      28 May 2025
    • Opinion

      Beyond the box: why IT distribution depends on real partnerships

      2 June 2025

      South Africa’s next crisis? Being offline in an AI-driven world

      2 June 2025

      Digital giants boost South African news media – and get blamed for it

      29 May 2025

      Solar panic? The truth about SSEG, fines and municipal rules

      14 April 2025

      Data protection must be crypto industry’s top priority

      9 April 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Wipro
      • Workday
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Investment » Mustek just had a banner year – here’s why

    Mustek just had a banner year – here’s why

    By Duncan McLeod9 September 2021
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp
    Mustek CEO David Kan

    JSE-listed technology group Mustek on Thursday reported a 248% leap in full-year headline earnings per share, hiked its dividend per share by 246% and said revenue climbed by more than a quarter to over R8-billion.

    “The group had an exceptional trading performance for the financial year to 30 June 2021, with our diversified portfolio of products and services providing a clear advantage in the marketplace,” Mustek said.

    “Revenue continued the growth trajectory that started during the previous financial year due to surging demand sparked by remote working requirements and remote learning,” it said.

    Mustek is ideally placed in an industry benefiting from the ’new normal’ that includes working from home and remote learning

    Group revenue rose by 25.6% to R8.04-billion, with this growth coming “from across the board”, with the two largest segments, Mustek and Rectron, growing their revenue by 22.6% and 30% respectively.

    “Rectron benefited from the surge in demand for its products. The addition of HP printers, Zebra and DJI Enterprise to its range of products towards the end of the 2020 financial year assisted its growth.”

    Margins

    Gross profit margin increased to 14.8% (14.2% a year ago), driven by increased demand for the group’s products and worldwide supply shortages. Favourable foreign exchange movements led to forex profits of R10.5-million, from a R56.8 million loss in the 2020 financial year.

    Inventory days (excluding inventories in transit) improved to 67.8 days (2020: 92.8 days). Trade receivable days improved to 49.2 days (2020: 55 days).

    The question now is, will the good tidings last? Mustek, which is led by founder and CEO David Kan, said it is “ideally placed in an industry benefiting from the ’new normal’ that includes working from home and remote learning across the basic education and higher education sectors”, the group said.

    Mustek’s head office in Midrand, north of Johannesburg

    “We are confident that the working- and learning-from-home reality is more than a passing trend. Employees had a glimpse of what their workplaces can be, and most will demand this type of flexibility from their employers in future. This scenario has created, and is still building, a valuable new customer base for our business.”

    In addition, Mustek said its investments into new products, including networking equipment, sustainable energy and fibre, are “starting to contribute meaningfully to both revenue and profit”.

    “The growth in fibre to the home is not only assisting our fibre sales, but also increasing the demand for new devices to fully benefit from the faster Internet speeds,” it said.

    “We have seen a marked increase in the demand for our products since the level-5 lockdown and believe that the device market size is increasing. This bodes well for future replacement cycles. The increased device market size will also drive demand for new infrastructure to support these devices and will accelerate the growth of the ICT industry over the short and medium term.” — © 2021 NewsCentral Media



    David Kan Mustek Rectron top
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleSouth Africa’s justice department hit with ransomware attack
    Next Article Naspers plunges again on growing China fears

    Related Posts

    Mustek buyout drama: Novus faces TRP setback

    29 March 2025

    Competition Tribunal approves Mustek-Novus deal

    18 March 2025

    Pictures | Inside South Africa’s biggest fibre factory

    11 March 2025
    Company News

    Altron: a brand journey, a birthday celebration and a bet on Joburg’s future

    17 June 2025

    7 benefits of social media integration in WordPress

    17 June 2025

    Paratus Zimbabwe and PowerTel strike milestone deal

    17 June 2025
    Opinion

    Beyond the box: why IT distribution depends on real partnerships

    2 June 2025

    South Africa’s next crisis? Being offline in an AI-driven world

    2 June 2025

    Digital giants boost South African news media – and get blamed for it

    29 May 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2025 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.