Pinnacle Technology Holdings` two new divisions, launched last year, are "gaining traction".
It hopes these businesses will provide additional growth, and it is seeking another acquisition. "It might be a good time to look for another little company to buy or invest in," says CEO Arnold Fourie.
Fourie says the two business units will aid growth over the current year.
A focused business unit, DD1, was established as a distributor of tier-one hardware products to larger value-added resellers in the corporate market.
A project management business unit, Infrasol, was set up to execute large networking infrastructure and audio-visual projects using a national footprint of service and implementation partners.
DD1 was created to grow the business within the tier-one sector, as Pinnacle Micro does not have a large share of the laptop market. Pinnacle Technology holds 76% of DD1 and it has 43 staff in Midrand. It also offers centralised warehousing with a national logistics footprint. Its brands include Dell, HP and Canon.
Infrasol grew out of the company`s repair capabilities. Wholly-owned, it has 134 staff in branches in Midrand, Cape Town, Port Elizabeth, East London, Durban, Bloemfontein and Nelspruit.
Fourie explains it provides technical services and focuses on network provision. He says the division has already won two government contracts.
Pinnacle Micro is still the largest unit and has been hit by a slowdown in government spending. Revenue grew 11%, but it suffered a foreign exchange loss that hampered its operating profit margin.
Yesterday, the company said revenue was up 14%, to R2.8 billion. Fully-diluted headline earnings per share increased 3.3%, to 59.1c, and net profit increased 5%, to R110.1 million.
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