Share

Pinnacle Technology increases revenue

Johannesburg - ICT group Pinnacle Technology Holdings [JSE:PNC] on Tuesday reported a 37.6% increase in fully diluted headline earnings per share from 59.1 cents to 81.3 cents for the year ended June.

Revenue increased by 11.8% to R3.17bn, primarily due to organic growth in two of the group's subsidiaries, WorkGroup and Pinnacle Africa.
 
Gross profit reduced from 15.5% to 15.1% as WorkGroup's better than average growth and the loss of RentNet's high margin business diluted the increased gross profit contribution by Pinnacle Africa.

Operating expenses amounted to R271m, reducing to 8.6% of revenue (2009: 9.6%) as profit and loss on foreign exchange realised a profit of R20m, a marked improvement on the loss of R24m reported in 2009.

Included in operating expenses is a R13m charge relating to bad debts, following a record level of business failures during the year.

Working capital investment increased to R243.6m from R153m. Trade days outstanding increased to 52.4 days (2009: 44.5 days), reflecting the impact of a material but secure government debt outstanding at year-end.
    
Days stock on hand increased to 52.2 days (2009: 44.6 days) following the 30% reduction in business volumes experienced during the soccer world cup.

Cash flow from operations yielded R62.3m (2009: R127.5m) being 44% of operating profit. Net cash on hand at year-end amounted to R187m.
 
Net tangible asset value per share has increased to 274.7 cents per share (2009: 204.1 cents per share).

The board has proposed a dividend of 16 cents per share for the year under review, which is a 33.3% increase on last year's dividend  of 12 cents per share and yields a dividend cover of 5 times, which it believes will be sustainable.
   
Looking ahead, Pinnacle Technology said market sentiment is largely
positive, with market indicators reporting improved earnings and jobs data.

"During the run up to and the hosting of the 2010 soccer world cup, government showcased its ability to effectively execute high value projects on time. Improvements in economic efficiency resulting from the new road infrastructure and improved policing and law enforcement resulting from these investments should pay dividends for all South Africans for years to come," the group stated.
    
Turning to its own operations, the group said: "Improved risk management and reporting strategies should contribute to a global platform for sustained, stable growth.
    
"The group will, however, continue to focus on cost containment to reduce pressure on revenue generation. Working capital management and cash generation will continue to enjoy attention as the Group aims to further improve its balance sheet and corresponding credit ratings."

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.89
+0.3%
Rand - Pound
23.87
+0.1%
Rand - Euro
20.38
+0.2%
Rand - Aus dollar
12.32
+0.1%
Rand - Yen
0.12
+0.2%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders