JSE-listed Mustek, at present the topic of a takeover bid by Novus Holdings, has reported a 74.3% decline in interim headline earnings per share (Heps), with administration blaming the financial system and different exterior elements for the poor efficiency.
Heps for the half-year ended 31 December 2024 was 23.47c, down from the 91.34c reported within the 2023 monetary yr. Income additionally slid, down 14.1% yr on yr to R3.7-billion. Working revenue fell by 47.1%, though gross revenue rose by 13.8% as the results of a “extra beneficial product combine”.
“The group’s efficiency remained beneath strain, reflecting the continuing challenges posed by world and native financial situations,” Mustek mentioned in notes included with its interim outcomes.
“These included persistent inflation, elevated rates of interest, sluggish financial development, and fluctuating shopper and investor confidence, each in South Africa and internationally.”
Mustek blamed the decline in income on “financial constraints, decrease shopper demand and being selective in solely pursuing offers that align with our threat urge for food and profitability targets”.
“The group’s two largest segments, Mustek and Rectron, noticed their revenues decline by 9.1% and 26%, respectively. The group’s IT coaching firm, Mecer Inter-Ed, skilled a slight decline in income to R43.4-million from R46.2-million from more durable market situations, though the margin achieved was higher than the comparative interval,” it mentioned.
Mustek reported international trade losses of R28.2-million within the interval, most of that are unrealised. It mentioned that with the rand power seen after the tip of the reporting interval, it’s “doable that almost all of those losses will reverse”.
Spending controls
Improved finances administration and stricter discretionary spending controls resulted in a 5.2% discount in general bills, regardless of inflation affecting costs in numerous classes, it mentioned. Finance prices stay a giant focus for the group.
Stock and receivables had been decreased by 14% in comparison with the year-end in June 2024, declining from R2.35-billion to R2-billion over the six-month reporting interval.
Learn: Why Novus desires to purchase Mustek – Q&A with CEO André van der Veen
One other constructive is {that a} give attention to working capital administration helped generate practically R700-million in money within the interval, in comparison with a R125.5-million money outflow from operations within the year-ago interim outcomes. This decreased the group’s overdraft to only R600 000, from R600-million at year-end in June.
Mustek is at present the topic of a compulsory takeover bid from JSE-listed printing and packaging group Novus Holdings. The IT group mentioned the 2 corporations will publish a joint round on 14 March that may set out the phrases of the supply to its shareholders. – © 2025 NewsCentral Media
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