Pinnacle Technology Holdings wants to add to its product range because this will open up more opportunities in new markets.
The company yesterday presented its results for the six months to December and reported revenue growth of 8.2%, to R1.464 billion, and headline earnings up 37%, to R62 million.
It has recently added to its portfolio, and now offers Fujitsu, Sharp and Samsung, which will grow its penetration in the data centre, audio-visual and office automation market segments.
CEO Arnold Fourie says the company wants to grow in the networking space, where it has previously been weak. He also sees more opportunities to expand into office automation, point-of-sale devices and digital security.
Pinnacle offers brands such as Apacer, CA, Canon, Dell, Hewlett-Packard, IBM, Intel, LG, Logitech, McAfee, Microsoft, Modrac, Novell, Samsung, Sony and VMware, along with its own Proline range of ICT equipment.
Time to grow
Fourie adds that the company may acquire new dealerships and agencies in this space. Pinnacle's preferred method of expansion is to inject cash as an investment into a firm and take a stake in return.
Pinnacle's balance sheet can handle expansion, says Fourie. During the six months, the business moved to a net cash position of R163.7 million, compared to R54.3 million at the end of December.
The company anticipates growth in the market. “I think we're through the worst...we're seeing some momentum,” notes Fourie.
This year, it expects the bulk of Windows 7 licences to start coming through, and the new operating system should drive the market for some time, he adds.
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