Pinnacle Technology Holdings has declared a dividend of 4c a share for the year to June, compared with a 1.5c dividend the previous year.
The IT products and services supplier increased headline earnings 69.8% in the year, from R13.19 million to R22.41 million. This translates into an increase in headline earnings per share from 8.9c to 15.1c.
Attributable earnings per share were up from 8.5c to 15.1c.
The market has welcomed the results - issued after trading closed last night - with the Pinnacle share rising 13c or 11.6% to 125c by midmorning today after 790 000 shares changed hands in 23 deals.
Revenue rose 43.9% from R497.2 million to R715.47 million. CEO Arnold Fourie says organic growth accounted for 9.4% of the revenue growth, while the proportional consolidation of Explix contributed 34.5% of the growth.
Pinnacle announced in October last year that it had bought 15% of Explix for R6.1 million, taking its shareholding to 50%.
Pre-tax profit grew 79.7% from R20.56 million to R36.95 million, while the net profit for the year amounted to R22.41 million, up 77% from R12.66 million the previous year.
The group`s net asset value at the end of the year stood at 75c a share, compared with 61.6c previously. Cash on the balance sheet rose from R29.38 million to R62.57 million.
The Explix acquisition has boosted software and storage`s contribution to 26.4% of turnover and 19.7% of earnings before interest, tax, depreciation and amortisation (EBITDA). This compares with a previous 3.4% and 8.6% respectively.
"Infrastructure and support remains the core of the Pinnacle group of companies, contributing 72.6% to the overall turnover and 81.4% of the EBITDA results of the group," says Fourie.
Although most business areas grew, the one disappointment was the telecommunications business, which Fourie blames on telecoms deregulation and the impact of Telkom`s reduced international call charges.
"We have addressed this by refocusing the business group on the delivery of telecommunication hardware platforms rather than the delivery of international least-cost routing services," he adds.
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