Pinnacle Technology dividend up 52%
ICT group Pinnacle Technology Holdings increased headline earnings per share by 49% from 117.7 cents to 175.1 cents for the year ended 30 June 2012.
Revenue rose by 18% to R5.8 billion with earnings before interest, taxes, depreciation, and amortisation (ebitda) up 30% to R419 million.
The group lifted its dividends for the year by 52% to 35 cents.
Pinnacle’s gross profit margin increased from 15% to 15.5%‚ which it attributed to improvements in margins in hardware distribution and the increase in mix of higher margin value-add services and financing solutions‚ offset to some degree by tighter margins in software distribution‚ which remained a difficult market throughout the year.
“We were able to reduce operating expenses as a percentage of turnover by a further 0.1% from 8.5% to 8.4%. This was due to the realisation of further synergies from the merger of Axiz and WorkGroup and through the incorporation into Pinnacle Africa of Explix and DataNet Infrastructure Group. Some of these benefits were however offset by the continued investment into new business divisions that will ensure further organic growth for PTH (the group)‚” the group added.
Looking ahead‚ PTH said it envisaged meeting all the market challenges during the year ahead.
“This has been re-enforced by our positive first quarter results‚” it stated. “The advent of cloud computing will bring many exciting opportunities to PTH. Private as well as public clouds will require additional investment into data centre infrastructure solutions. Products such as F5 and Bluecoat that enhance the performance‚ security and availability of these networks will be in high demand as networking speed becomes critical,” the group added.
Pinnacle said it will also enhance its product offering in the physical security and fire prevention technologies. The launch of Windows 8 will reinvigorate the IT market through the introduction of new enhanced features for both business as well as home users.
“Infrasol is expanding its services offering and is seeing increased traction‚ while Centrafin‚ PTH’s finance subsidiary‚ is adding value to the group’s offering,” it concluded.
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