Mustek plans more property sales
CEO plans to ‘turn lazy assets into cash’ as sale of vacant land in Midrand helps boost interim profit
Mustek, an assembler and distributor of information and communications technology (ICT) products, plans to sell at least one more property to boost cash reserves, according to CEO David Kan. Mustek’s half-year numbers received a boost from the disposal of a vacant land in Midrand for R17.5m. The sale yielded an after tax, non-headline profit of R6.3m. For the six months to December, the company’s net profit rose 23% to R57m as revenues edged up 2% to R2.7bn. Sales were up mainly thanks to new products and services in the group's portfolio. Kan said other asset sales were on the cards. “We’re looking at lazy assets that aren’t generating returns. We want to turn those into cash.” Mustek wanted to sell a property in Nairobi, Kenya, which has a market value of about $2.5m, Kan said. FD Neels Coetzee said Mustek’s new product lines — including networking equipment, sustainable energy and fibre — were starting to contribute “meaningfully” to revenue and profit.
“The growth in fibre...