Pinnacle earnings rise 45%, dividend up

Johannesburg - ICT company Pinnacle Technology Holdings [JSE:PNC] on Friday reported a 45% rise in headline earnings per share to 117.7 cents for the year ended June 2011 from 81.3c a year ago. Earnings per share were up 58% to 121c.

The board has proposed a dividend of 23c/share, up from 2010's 16c.

Revenue was 57% higher at R4.96bn, of which 24% came from organic growth in the existing group and 33% due to the acquisition and incorporation of the Axiz Technology Group and Centrafin.

The results were achieved despite the impact on pricing of the stronger rand, which averaged nearly 8% stronger in 2011 than in 2010.

The company said the current organic growth of 24% before acquisitions is comparable to a 12% total turnover growth in 2010.

Earnings before interest, taxes, depreciation and amortisation increased by 55% to R323m and net profit attributable to shareholders increased 58% to R220m. Group net profit improved marginally from 4.4% to 4.5% of turnover.

Looking ahead, the group said market sentiment is mixed with concerns emerging over the continuing inability of Europe to resolve debt crises in Greece, Ireland and the Iberian Peninsula and the threat of a double-dip recession in the US.

Global markets continued to recover at a restrained pace, as Western governments drive their economies with stimulus packages. International risk, however, remains finely balanced.

The key for the group remains growth while continuing to focus on cost containment, it said.