Mustek expects to have a better second half this year, as it moves into more profitable segments and expands its product range.
Mustek's results for the six months to December show revenue from continuing operations up 10%, to R1.8 billion, while headline earnings per share grew 137%, to 29.52c.
CEO David Kan says the Mustek unit was mostly flat in terms of revenue. He says that, historically, the group's second half is better than the first six months of the year and, two months into the second half, sales are "encouraging".
Revenue growth in the first half was supported mostly by the addition of the Acer and Lenovo product ranges, says Mustek. It expanded its basket of products, and added Huawei Enterprise Solutions and the Miniflex range of fibre cables, as well as solar panels.
Mustek does not have any plans to acquire and is working at growing organically, notes Kan. He says both its foray into closed-circuit TV cameras and its Huawei distributorship should show in the numbers in the second half.
Rectron, Mustek's wholly-owned unit, grew revenue 36% from continuing operations, to R827.7 million, which excludes the held-for-sale Australian unit, and regained its profitable position with a bottom line gain of R14.3 million, almost double last year's figure.
Kan explains that, six months ago, Rectron made R2 million in operating losses, but made a net profit off the back of R7 million-worth of property sales. He says that, in this half, there was a R17 million swing in operating profit.
Kan says Mustek is generating "more and more" profitable business and sees room locally to expand into the tablet market, which has been eating into PC sales for the past two years.
Local brands will come to the fore this year and next year, as there is little tablet makers can do to differentiate themselves apart from competing on price, says Kan. "It purely becomes a price game."
Mustek will land its own range of tablets, produced in China, this March, says Kan. Its share closed slightly lower at 575c, a 10c or 1.71% decline.
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