Mustek says ICT demand still buoyant as work-from-home trend persists

Mustek, which assembles and distributes computers and related products, says it remains confident that the Covid-19 induced trend of working from home, which helped it grow revenue by double digits in its half year to end-December, will remain in place.

Group revenue rose 12.5% to R4.19bn to end-December and profit 8.8% to R152m, with global supply issues having also increased the group’s pricing power, which is expected to continue well into 2023.

Mustek was established in 1987 and its brand portfolio includes big brands such as Acer, ASUS, Samsung and Lenovo.

“As an IT-focused business, the Mustek Group is ideally placed in an industry benefiting from the ‘new normal’,” the group said.

“We are confident that the work and learn from home reality is more than a passing trend. Employees have experienced the benefits of remote working and we feel that flexibility in this regard is likely to stay,” the group said.

Mustek’s branch in KwaZulu-Natal had been significantly damaged and set on fire during the civil unrest in July 2021, with total losses to inventory and equipment amounting to R24m, which has been paid by insurers.

The group did not pay an interim dividend, saying it would consider one at year end.

In morning trade on Wednesday Mustek’s were up 1.26% to R14.90, giving the group a market value of R909m. The group’s shares have risen by more than 80% over the past two years, roughly the period of time SA has been grappling with Covid-19.

gernetzkyk@businesslive.co.za