Mustek increases dividend by 83.3% amid fluctuating financial performance

MUSTEK raised its dividend a massive 83.3% to 13.75 cents in the year to June 30, but the payout is still below historical trends.

- EDWARD WEST

The ICT distributor and technology solution provider, which only declares a final dividend after evaluating its funding requirements and opportunities to repurchase shares, paid out 7.7 cents a share in the 2024 financial year, and the dividend payout ratio was maintained. But in 2023, the dividend was 77 cents a share, it was 76 cents in 2022, while the 90 cents in 2021 was the group's biggest dividend over 10 years.

In terms of the annual results released Friday, the much higher dividend followed a sharp increase in the total income for the year, to R42.31 million from R21.85m the previous year.

The group is currently the target of an acquisition bid by JSE-listed printing, publishing, packaging, and education company Novus Holdings - it already holds a 39.9% stake in Novus.

Novus won a High Court appeal in April 2025, overturning a ruling by the Takeover Regulation Panel (TRP) that had withdrawn approval of the deal. The court declared the TRP’s decision unlawful and ordered Novus to proceed with publishing its offer circular.

“At the date of this publication, Novus has not received a certificate of compliance from the TRP in relation to this mandatory offer. Novus, as the offeror, cannot proceed...until such time as the TRP has issued a compliance certificate,’ Mustek’s directors said.