Listed IT company Pinnacle Technology Holdings increased its revenue by 14% in the year to June.
In a Stock Exchange News Service announcement this morning, the company reported revenue of R2.8 billion, while gross profit as a percentage of sales increased from 15.2% to 15.5%.
Fully diluted headline earnings per share reflected an increase of 3.3%, to 59.1c, as net profit increased 5%, to R110.1 million.
"It is particularly rewarding that Pinnacle overcame the challenges raised by the recessive global economies, policy changes in the South African political landscape and the foreign exchange losses suffered in October 2008 to deliver positive growth," it says in the announcement. Pinnacle maintained its dividend at 12c.
The company says a focus on controlling costs and seeking synergies reduced operating expenses, excluding a foreign exchange loss, to 8.4% of revenue, an improvement on last year`s 8.9%.
However, uncovered foreign exchange liabilities gave rise to a foreign exchange loss of R32 million in October, which resulted in the company having a full year loss on foreign exchange of R24.9 million, compared with a gain last year of R7.2 million.
High hopes
Fast figures:
2009 2008
Revenue: R2.8bn R2.5bn
Net profit: R110m R104.8m
HEPS: 72.5c 70c
Dividend: 12c 12c
Pinnacle says new technologies in virtualisation, security, networking and communication, as well as the continued convergence of voice, data and video in day-to-day business and private applications, offer opportunities for technology providers.
In addition, Microsoft`s new operating system, Windows 7, and the impending launch of Microsoft Office 2010 will create opportunities for both hardware and software resellers, Pinnacle says.
Technology advances and reduced bandwidth and technology costs will contribute to the adoption of new technology in the small and medium enterprise sector, as well as in residential markets, it notes. This bodes well for future growth.
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Pinnacle is bullish
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