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Mustek, which assembles and distributes computers and provides ICT services, said on Tuesday while strong demand for cybersecurity helped lift its revenue above R10 billion in its year to end-June, it still took a hit from higher finance costs and an oversupply of entry-level notebooks.
Mustek, valued at about R887 million on the JSE, reported a 14.1% climb in revenue to R10.1 billion to end-June, but profit still fell about 2.5% to R220 million. The group reported a climb in foreign currency losses to R123 million, while finance costs surged about 127% to R174 million.
Established in 1987, and listed on the JSE in 1997, the group is one of the largest assemblers and distributors of personal computers and complementary ICT products in South Africa, while also providing services such as server and maintenance services and security through businesses including Sizwe Africa IT and Khauleza IT.
Mustek said its investment in new product lines such as cloud and cyber security solutions, networking equipment and sustainable energy contributed meaningfully to both revenue and profit. However, it noted in an investor presentation it saw an over supply of entry-level notebooks, and its gross profit margin fell to 13.9% from 14.3%.
Despite this, the group upped its dividend for the year by 1.3% to 77c, though this is less than the 90c it paid out in 2021 - a year it benefited from foreign currency gains and from much lower interest rates.
The group's shares had jumped more than 8% in morning trade on Tuesday and have now gained almost that much on a one-year basis.