Pinnacle Holdings' group revenue - for the six months to 31 December 2013 - increased by 1.1%, to R3.16 billion, in what the company described as a challenging trading period.
The company says the tough trading environment was a result of "significant parts of our economy taking strain due to the debt-restricted consumer, a plethora of labour unrest and a volatile and weakening exchange rate".
The group's earnings before interest, tax, depreciation and amortisation grew 1.7%, to R232 million, in the six months, while net profit after tax was up 9%, to R162 million.
Gross profit increased by 6% on improved margins of 16.3%, while headline earnings per share were up 1.7%, to 95.4c.
Operating expenses increased by 9.1%, resulting in a gain in operating income of 1.7%. This included the reclassification of the fair value adjustment on the de-recognition of the investment in Datacentrix from a listed share to an equity accounted investment.
Pinnacle says its distribution division increased revenue by 2%, with net profit after tax also up by 2%.
"Operating costs grew in line with expectation, but increased as a percentage to revenue, as a result of the lower revenue achieved and the investment into the advanced technologies unit. This unit has recently taken on additional networking and security vendors, such as Cisco and Trend, which should deliver significant revenue in the months and years ahead," says the company.
Pinnacle's IT projects and services division, Infrasol, increased turnover by 39% and net profit after tax by 29%, while its Centrafin business grew revenue by 65% and achieved net profit after tax growth of 67%.
"The overall economy faces challenging times ahead, with the consumer becoming more financially constrained than ever and the resources sector, bedevilled by labour and demand issues.
"Nonetheless, the IT sector has remained resilient in the face of these and other economic challenges and it is envisaged that it will continue to remain reasonably so," says Pinnacle.
It expects its investment in Datacentrix to deliver enhanced returns for the group, in the years ahead, "as we explore synergies and enhancements".
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