JSE-listed Pinnacle Technology Holdings is manoeuvring itself for further bottom-line growth.
CEO Arnold Fourie said, despite interest rate increases that will spur on competition in the industry, he is still optimistic there is room for Pinnacle to grow.
The company said, presenting its results to end-June on Friday, that while consumers have less disposable income and there will be pressure on margins, much of its products are sold through mass retailers, which offer their own financing schemes. As a result, Fourie said, this market will not be badly hurt by an interest rate hike.
"There will be more competition, so we must ensure that we are better equipped to fight."
The company, as a group, aims to increase its market share across notebooks, desktops and fileservers. It has 5.8% of the desktop market, but believes that this figure may be understated. It also has 2.1% of the notebook market and 0.8% of the fileserver market.
Pinnacle recently took on LG as a distributor, a move which Fourie said left the market "stunned".
New pastures
Pinnacle will also be entering new arenas such as active and passive networking infrastructure and broadband wireless technology.
In addition, the company is open to acquisitions and its results presentation states that it is "seeking quality acquisitions" as it continues to transform into a diversified technology-holding company.
With R166 million in the bank, Fourie adds, the company has the cash to carry out a takeover. However, he says this is not likely to be a complimentary business, but rather something that will aid the company in its diversifications process.
Pinnacle has also recently become a net interest earner, instead of paying out interest, having cleared out debt.
The group is also diversifying on the continent and has recently launched as a full-services company in Zambia, Angola, Mozambique and Kenya. Pinnacle Africa, as the company is known, has also incorporated Botswana into this fold.
Digital TV
Pinnacle Micro recently started offering plasma televisions as Fourie is convinced the IT industry will win the digital television war, especially when it comes to wireless home theatre. This division also intends regaining its notebook presence.
The division also aims to provide government with additional product sets and is growing its IT services and support sectors on the back of growing its government and retail sectors.
RentNet seeks to transform into a comprehensive technology and services supplier to the conference and events industry, said Fourie. "We want to supply this technology to all event managers out there."
Pinnacle`s shares closed at R2.74 on Friday, after hitting an inter-day high of R2.89. Shares closed at R2.81 on Thursday. Its 12-month high is R2.89, while its 12-month low is R1.18.
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