Pinnacle Technology Holdings has reported a 69% increase in net profit for the six months to 31 December.
<B>Salient figures</B>
Pinnacle Technology Holdings results for the six months to 31 December 2002.
Year-earlier figures in parentheses:
Revenue: R176.77m (R143.83m)
Operating income before finance charges: R7.66m (R5.56m)
Net profit before tax: R4.94m (3.23m)
Net profit: R3.64m (R2.15m)
Attributable earnings: R2.9m (R2.12m)
HEPS: 3.9c (2.9c)
Current assets: R114.99m (R97.6m)
Bank and cash balances: R5.17m (-R1.77m)
Current liabilities: R82.34m (R66.96m)
NAV per share: 49.4c (44.5c)
The group also says it has had to restate its last year-end figures as a result of non-compliance in certain circumstances with the latest South African Statements of Generally Accepted Accounting Principles (GAAP).
Pinnacle made several acquisitions during the previous financial period and is now divided into four operating divisions: IT infrastructure; software and storage; IT-related services; and property.
Its core business activity remains the supply of IT products and services to a wide spectrum of corporate, government and reseller customers.
In the six months to December IT infrastructure accounted for 90.7% of total turnover, with software and storage contributing 6.4%, services 2.8% and property just 0.1%.
CEO Arnold Fourie says the continued worldwide downturn and tough local trading conditions kept the IT infrastructure business under pressure, but the operation still performed satisfactorily. The operation manufactures the Proline brand of desktops, notebooks and fileservers.
The software and storage division is a new addition to Pinnacle and has no historical figures. It consists of a 35% stake in Workgroup and a 60% holding in Intelligent Systems. Fourie says the division exceeded its budget.
The services division consists of Rentnet Rentals and Pinteq while the property division holds land and buildings used by third-parties.
Fourie says the group has identified Tswela services as a non-core business and has disposed of its 45% stake for R225 000 to the remaining shareholders.
He says the figures for the year to June 2002 had to be restated after a review by the JSE in conjunction with the GAAP Monitoring Panel. It was found that the group had not complied in certain circumstances with the latest GAAP statements. Full details have been disclosed in the restated annual report.
He says the next six to 12 months will be used to consolidate and integrate the various acquisitions and new branches.
"There are no immediate new acquisitions foreseen, but internal restructuring and refocusing into new opportunities will ensure further growth and strengthening of the group.
"The company is also anticipating converting shares held by the remaining minority shareholders in Pinnacle Holdings into shares of Pinnacle Technology Holdings," he says.
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