Subscribe

Pinnacle assures 'it's business as usual'

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 20 Aug 2014

Pinnacle Holdings has moved to reassure shareholders it remains focused on day-to-day business operations, and says customers, suppliers and financiers "remain in place and continue to be supportive of the business", after the company saw its share price plummet in recent weeks.

The "substantial weakening in its share price" was prompted by a trading statement the company issued on 8 August, in which it warned its results for the year ended 30 June would reflect a headline earnings per share drop of 15% to 22%, and earnings per share decline of between 13% and 20%.

"The company herewith wished to address some perceived concerns and hopefully lay to rest any rumours that may be circulating in the market," it says in a statement to shareholders this afternoon.

The company points out that during the last quarter of the financial year, its revenue grew by 7%, "although the benefit of this was negated by lower margins and increased expenses".

"In addition, Pinnacle incurred material once-off charges relating to write-downs on large holdings of inventory, which were becoming end-of-life. It is important to note there has not been any significant diminution in public sector business in the last quarter."

Pinnacle's statement also refers to the bribery case against executive director Takalani Tshivhase, who was charged on 24 March with attempting to bribe a senior South African Police Service official. Tshivhase allegedly offered the officer R5 million so the company could win a R182 million contract to supply about 3 000 handheld MaxID devices to the SAPS. He was arrested in March.

"As announced on SENS on 2 July 2014, this matter has been postponed until 9 September 2014. There is no further information to report on this matter at this stage and shareholders will be advised once any new information becomes available," says Pinnacle.

"The CEO, the executive and non-executive directors remain fully committed to the group and are, as usual, fully focused on the business. The group continues to practise the highest standards of corporate governance and transparency. It is, therefore, business as usual at Pinnacle. Shareholders will be informed as and when any further relevant information becomes available."

Share