Pinnacle plugs into positive results - CNBC Africa

Pinnacle plugs into positive results


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Fiber optic cable and silicon chip. PHOTO: Getty Images

Revenue for the period was up 1.1 per cent to 3.16 billion rand, from 3.12 billion rand in the six months ended 31 December 2012.

While earnings before tax, depreciation and amortisation also increased 1.7 per cent to 232.5 million rand from 219.4 million rand in the previous comparative period.

“The trading period has been a challenging one with significant parts of our economy taking strain due to the debt restricted consumer, a plethora of labour unrest and a volatile and weakening exchange rate,” [DATA PNC:Pinnacle Holdings LTD.] said in a statement.

Pinnacle is one of Africa’s largest ICT hardware and distributors. Through its subsidiaries, it also provides maintenance and implementation services and financial solutions.  

Headline earnings per share were up 1.7 per cent to 94.5 cents  

Gross profit also increased to 514.9 million rand from 487.4 million rand in 2012. Operating expenses were also up to 282.3 million rand from 258.8 million rand in the previous year.

Profit before tax was recorded at 221.6 million rand from 209.3 million rand in the previous comparative period.

“There was a saving on the tax rate due to the utilisation of certain tax losses. The net result was that the 1 per cent revenue growth was turned into a healthier increase in post-tax earnings of 9 per cent,” said Pinnacle.

Revenue for Pinnacle’s ICT distribution division increased to 3.1 billion rand from 3 billion rand in the previous year, and group’s IT Projects and Services reported an increase to 94.7 million rand from 68 million rand in 2012.

Its financial services division also reported an increase to 49.8 million rand from 30.2 million rand in the previous comparative period.

“Infrasol, the IT Projects and Services division, increased turnover by 39 per cent and net profit after tax by 29 per cent. We continue to believe that emphasis into this exciting part of the Group will show the desired outcome in the years ahead,” the group added.

On 30 October 2013, the Competition authorities approved, with certain conditions, for Pinnacle to acquire a controlling stake in Datacentrix Holdings Limited, an ICT solutions provider.

(READ MORE: Datacentrix 2013 H1 HEPS up 9.4 per cent)

“The overall economy faces challenging times ahead, with the consumer becoming more financially constrained than ever and the resources sector, bedevilled by labour and demand issues,” the group said.

“Nonetheless, the IT sector has remained resilient in the face of these and other economic challenges and it is envisaged that it will continue to remain reasonably so.”