Pinnacle boosts performance

Johannesburg, 21 Sept 2007

JSE-listed Pinnacle Technology Holdings has delivered a strong set of financials for the year ended 30 June.

Topping last year's 48.3% revenue increase, the company this morning reported revenue growth of 62%, to a record R1.72 billion.

Other comparisons of Pinnacle's income statement with previous figures cannot be completed, as the company has had to restate its 2006 financials.

The restatement, which shows the company making a net loss of R6.2 million in 2006, is to facilitate the accounting treatment of its black economic empowerment transaction.

"In accordance with the transitional provisions of AC 503, a once-off, non-cash flow charge amounting to R50 330 223 and a corresponding increase in equity are reflected in the 2006 comparative results," it explains.

Performance breakdown

Pinnacle Micro, with a R1 billion revenue contribution, continues to be the mainstay of the group, says Pinnacle. This subsidiary focuses on value-added distribution via its channel, retail, government and corporate divisions.

Software distributor WorkGroup grew by 66% during the year, delivering R586 million in revenue, as it continued to diversify horizontally and vertically.

High growth targets within RentNet have been met as services were expanded to include high-end audio-visual, conference and translation services. However, these came in at a lower operating margin, notes Pinnacle. This company delivered revenue of R26.5 million.

DataNet, consolidated with effect from 1 October 2006, contributed acquisitive growth of 4.4% to group turnover with revenue of R75 million.

Headline earnings per share (HEPS) increased by 68% to 51.6c, while fully diluted HEPS increased by 43% to 42.2c per share. This recognises the full dilutionary impact of shares issued to Amabubesi in April 2006.

Says Pinnacle CEO Arnold Fourie: "It was a year of considerable growth for the Pinnacle Group. Strategies implemented during the past three years have come to fruition with exceptional sales growth in all the operating units."