Finweek English Edition - - Companies & markets - BELINDA AN­DER­SON

LO­CAL PRO­LINE-BRANDED PC MAN­U­FAC­TURER, soft­ware and ser­vice provider Pin­na­cle just keeps on de­liv­er­ing. Re­cent in­terim re­sults to De­cem­ber saw the share rise above 400c (it was be­low 270c in early De­cem­ber last year).

Pin­na­cle re­ported 84% growth in head­line earn­ings per share to 22,5c, on 87% turnover growth to R729m (56% of this was or­ganic). EBITDA mar­gins im­proved to 7,4% from 6,8% in the com­pa­ra­ble six months. Though there was a cash out­flow from op­er­a­tions, there was a sim­i­lar trend in the last six months, re­cov­er­ing to a strongly pos­i­tive in­flow by year-end.

Ef­forts to di­ver­sify the prod­uct range and dis­tri­bu­tion chan­nels – which Pin­na­cle at­trib­uted in part to its con­tin­ued suc­cess – saw, for ex­am­ple, Pin­na­cle Africa mak­ing a first­time rev­enue con­tri­bu­tion of R47m, and EBITDA of R1,2m. OP­POR­TU­NI­TIES Pin­na­cle said the ar­rival of true broad­band – WiMax, or 4G in wire­less, and 4Gi­ga­byte ADSL in fixed line – would in­creas­ingly drive the de­mand for tech­nol­ogy prod­ucts and ser­vices. Or­ders aris­ing out of Nepad school-con­nec­tiv­ity ini­tia­tives. Pin­na­cle said ini­tial or­ders for re­cently re­leased 64-bit tech­nolo­gies would “no­tably” con­trib­ute to sec­ond-half re­sults. Pin­na­cle Africa seems to of­fer po­ten­tial, as the con­ti­nent in­creas­ingly par­tic­i­pates in the dig­i­tal age (al­beit ini­tial mar­gins were low). RISKS Pin­na­cle said changes in the eco­nomic cli­mate brought about by ris­ing in­ter­est rates ne­ces­si­tated cau­tion. • Any cur­rency in­sta­bil­ity could also cause hic­coughs.


Source: I-Net Bridge

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