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Johannesburg - Information and communication technology group Pinnacle Technology Holdings [JSE:PNC] on Thursday announced fully diluted headline earnings per share (HEPS) of 48 cents for the six months ended December 2010, from 34.3 cents previously.
Basic earnings per share (EPS) climbed to 48 cents, from 29.6 cents in 2009.
Revenue improved to R2.099bn, from R1.465bn, while operating profit increased to R126.83m, from R74.35m.
"Rand strength continued to put pressure on some of the divisions and the government IT investment remained below expectations. The period before and during the Soccer World Cup was challenging due to the relative low corporate activities, but a quick pick-up was noted after the World Cup conclusion," the group said.
Revenue for Pinnacle Africa grew by 24% to R1bn while earnings before interest, tax, depreciation and amortisation (ebitda) grew by 59% to R81.6m.
"Large retail customers switched some of their buying to Pinnacle Africa and small to medium enterprise business remained strong during this period."
Pinnacle Technology said that WorkGroup was affected by the strong rand as well as low corporate activity during the Soccer World Cup. Revenue grew by 12% to R600m, but ebitda decreased 11% to R31m.
DataNet increased revenue by 41% to R113m and ebitda by 76% to R4.2m.
"Subdued infrastructure demand was offset by the introduction of the new voice and data division," Pinnacle said.
The group noted that Infrasol continued on its growth path. Revenue increased fourfold and break even on ebitda was achieved during the first half. "Infrasol, however, received its first meaningful installation contract in January, which will turn it profitable," it said.
The acquisition of Axiz and CentraFin had a combined effect of R191m on the consolidated cash balance of Pinnacle, while R14.4m was spent on the acquisition of vehicles and equipment for the group, required to maintain and grow revenue, the group said.
Basic earnings per share (EPS) climbed to 48 cents, from 29.6 cents in 2009.
Revenue improved to R2.099bn, from R1.465bn, while operating profit increased to R126.83m, from R74.35m.
"Rand strength continued to put pressure on some of the divisions and the government IT investment remained below expectations. The period before and during the Soccer World Cup was challenging due to the relative low corporate activities, but a quick pick-up was noted after the World Cup conclusion," the group said.
Revenue for Pinnacle Africa grew by 24% to R1bn while earnings before interest, tax, depreciation and amortisation (ebitda) grew by 59% to R81.6m.
"Large retail customers switched some of their buying to Pinnacle Africa and small to medium enterprise business remained strong during this period."
Pinnacle Technology said that WorkGroup was affected by the strong rand as well as low corporate activity during the Soccer World Cup. Revenue grew by 12% to R600m, but ebitda decreased 11% to R31m.
DataNet increased revenue by 41% to R113m and ebitda by 76% to R4.2m.
"Subdued infrastructure demand was offset by the introduction of the new voice and data division," Pinnacle said.
The group noted that Infrasol continued on its growth path. Revenue increased fourfold and break even on ebitda was achieved during the first half. "Infrasol, however, received its first meaningful installation contract in January, which will turn it profitable," it said.
The acquisition of Axiz and CentraFin had a combined effect of R191m on the consolidated cash balance of Pinnacle, while R14.4m was spent on the acquisition of vehicles and equipment for the group, required to maintain and grow revenue, the group said.
