Pinnacle Technology Holdings more than doubled net profit in the six months to December, thanks to cost controls, foreign exchange gains and new product releases.
Net profit rose to R5.87 million from the R2.86 million achieved in the same period a year earlier. Headline earnings rose from 1.9c to 3.9c a share while basic earnings per share of 4.1c compare with a year-earlier figure of 2c a share.
Revenue rose to R200.6 million (2003: R181.66 million), with gross profit of R36.58 million (R34.3 million) and operating profit of R8.8 million (R5.52 million).
"Although the group`s gross profit margin reduced to 18.3% (from 18.9%), stringent cost control and gains made on foreign exchange contributed to increase the operating profit for the period to 4.4% of turnover (3% previously)," says CEO Arnold Fourie.
Revenue increases were recorded in the infrastructure and support, software and storage, and telecommunication holdings and properties lines, with a decrease in revenue from ICT services.
The balance sheet shows cash of R6.4 million (R8.21 million). The net asset value at the end of the period was 63.9c a share (55.2c).
Fourie says revenue growth in the infrastructure and support business, where Pinnacle earns most of its revenue, was thanks to the development of new product ranges, particularly point-of-sale and closed circuit monitoring equipment.
He adds that the group has received significant orders from various institutions for delivery in the first half of this year. "These orders are expected to contribute significantly to the operating results for the period ending June 2005."
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