Pinnacle Technology Holdings` net profit fell by 26% in the 12 months to end-June after a year of consolidating its investments and acquisitions.
<B>Salient figures</B>
Pinnacle Technology Holdings results for the year to 30 June 2003.
Previous year`s figures in parentheses:
Revenue: R417.82m (R358.55m)
Operating profit before interest: R17.36m (R12.53m)
Net profit before tax: R13.01m (R7.8m)
Net profit from ordinary activities: R9.41m (R6.51m)
Net profit: R4.85m (R6.51m)
EPS: 3.26c (4.38c)
HEPS: 6.43c (4.38c)
Current assets: R106.54m (R123.29m)
Cash and equivalents: R11.44m (R8.13m)
Current liabilities: R66.38m (R99m)
Cash flow from operations: R11.65m (R30.28m)
However, net profit from ordinary activities increased by 44.4% to R9.41 million.
Revenue for the year rose by 16.5% to R417.82 million and operating profit before interest was 36.6% higher at R17.36 million. Earnings per share dipped by 25.6% to 3.26c although headline earnings per share were 46.8% up at 6.43c.
During the previous financial year Pinnacle was divided into four operating divisions - IT infrastructure, software and storage, IT services and property.
"During the year under review, the group has consolidated the investments and acquisitions made during the previous financial year," says CEO Arnold Fourie.
"These investments and acquisitions have been streamlined and together with internal restructuring, the group is now set to take advantage of these investments."
The continued deterioration of Zimbabwe`s economy has prompted the group to decide that Pinnacle`s investment in Quandry should be regarded as irrecoverable in the near to medium future and that the total investment of R3 million be impaired.
"The board has also evaluated the remaining investments and loan accounts, which resulted in a net impairment of R1.5 million," Fourie says.
The group has improved its balance sheet and repaid its short-term loan of R23.8 million to Cutfin.
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