Johannesburg - Computer distributor Mustek experienced a
slowdown in revenue growth for the six months to December.
The listed company says this is due to a reduction in
spending from the government sector in the period.
The group’s revenue increased marginally by 5.6 percent
to R2.6 billion
It says, in its results commentary, that its gross profit
margin from continuing operations declined from 14.4 percent to 12.6 percent ,and
is marginally down from the 12.9 percent for the year ended June 2016.
“Although the gross profit percentages achieved by
products such as Huawei Enterprise Solutions and Microsoft Volume Licensing are
lower, their contributions to profit are expected to continue growing.”
In addition, the strengthening rand and the
company’s drive to reduce inventory levels also resulted in a reduction of its
gross profit.
Read also: Mustek sees margins lower
Mustek’s headline earnings came in 27.7 percent lower at
37.34 cents per share, while basic earnings are 27.4 percent lower at 37.24
cents per share. Headline earnings per share are seen as a key indicator of
financial performance as they strip out once-off and unusual items.
The group says, for the period ahead, it expects lower
inventory levels to have a positive effect on its gross profit margins and will
seek alliances with players in the Internet of Things space.
The IoT space refers to a world in which all devices are
connected to the internet and an communicate with each other, allowing
consumers to – for example – turn lights on remotely.
BUSINESS REPORT ONLINE