| Tue 20 Mar 2001, 0:00 | | Pinnacle - Unaudited Interim Results For 6 Months |
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Pinnacle Technology Holdings Limited
(Registration No: 1986/000334/06
Unaudited interim results for the six months ended 31 December 2000
Group income statement
Unaudited Unaudited Audited
31 Dec 31 Dec 30 Jun
2000 1999 2000
R000's R000's R000's
Revenue 156 738 156 174 302 637
Operating income before deprecation 5 224 7 569 15 617
Depreciation (830) (1 021) (1 917)
Operating income after deprecation 4 694 6 548 13 700
Net interest paid (2 622) (3 020) (5 469)
Net profit before taxation 2 072 3 528 8 231
Taxation (687) (1 235) (2 623)
Net profit after taxation 1 385 2 293 5 608
Exceptional items - 835 (404)
Net profit for the year 1 385 3 128 5 204
Outside shareholders' interest (27) (165) (185)
Earnings attributable to
ordinary shareholders 1 358 2 963 5 019
Earnings per share (cents) 0,92 2,45 3,46
Headline earnings per share (cents) 0,92 1,76 3,74
Shares in issue 147 897 120 882 144 967
Group statement of changes in equity
Unaudited Unaudited Audited
31 Dec 31 Dec 30 Jun
2000 1999 2000
R000's R000's R000's
Changes in share capital 1 479 1 450 1 450
Balance at beginning of period 1 450 1 209 1 209
Issue of shares 29 241 241
Changes in share premium 53 265 55 044 52 123
Balance at beginning of period 52 123 45 651 45 651
Premium on shares issued 1 142 9 393 9 393
Goodwill set off - - (2 921)
Non-distributable reserve 3 535 3 156 3 535
Balance at beginning of period 3 535 3 156 3 156
Revaluation of land and buildings - - 379
Retained earnings 5 951 6 144 4 593
Balance at beginning of period 4 593 3 181 (425)
Net profit for the period 1 358 2 963 5 019
Ordinary shareholders' equity
at end of period 64 230 65 794 61 701
Group balance sheet
Unaudited Unaudited Audited
31 Dec 31 Dec 30 Jun
2000 1999 2000
R000's R000's R000's
ASSETS
Non-current assets 42 849 48 269 44 208
Fixed assets 24 351 27 728 25 023
Deferred taxation 18 498 20 541 19 185
Current assets 114 726 108 119 120 145
Inventories 46 087 44 084 57 297
Accounts receivable 66 161 62 001 62 506
Bank and cash balances 2 478 2 034 342
Total assets 157 575 156 388 164 353
EQUITY AND LIABILITIES
Capital and reserves
Ordinary shareholders' funds 64 230 65 794 61 701
Outside shareholders' interest 1 118 1 385 2 159
Non-current liabilities 12 555 17 011 13 325
Directors' loans - 1 557 -
Long-term liabilities 12 555 15 454 13 325
Current liabilities 79 672 72 198 87 168
Accounts payable 66 637 53 848 67 395
Short-term loan 13 034 17 954 19 772
Taxation 1 396 1
Total equity and liabilities 157 575 156 388 164 353
Net asset value per share (cents) 43,43 54,43 42,56
Summarised group cash flow statement
Unaudited Unaudited Audited
31 Dec 31 Dec 30 Jun
2000 1999 2000
R000's R000's R000's
Cash inflow from/(outflow to)
operating activities 2 890 (6 924) (387)
Cash (outflow to)/inflow from
investing activities (114) 4 993 3 042
Cash outflow to financing activities (640) (463) (7 011)
Net increase/(decrease) in cash
and cash equivalents 2 136 (2 394) (4 356)
Cash and cash equivalents
at beginning of period 342 4 698 4 698
Cash and cash equivalents
at end of period 2 478 2 304 342
Group overview
Notes
Our business
Pinnacle's core business activity remains a leading supplier of Information
Technology products and services. These include computers, peripherals and
networking products, value-added sales and support services and installation
and financing schemes. Pinnacle continuously strives to excel by offering
leading edge technology and uncompromising quality of products and services.
Results
The group recorded a disappointing 27% drop in operating profit before
depreciation and interest paid, for the six-month period ended 31 December 2000
The main reasons for this drop in operating profit before depreciation and
interest paid for the period under review are as follows;
* the negative effect of the Y2K syndrome on Information Technology companies;
* the worldwide decline in the demand for Information Technology products and
services;
* the strong competition between Information Technology companies and the
direct impact on margins; and
* the weakening of the local currency against foreign currencies.
Earnings per share dropped from 2,45 cents per share to 0,92 cents per share
and headline earnings per share from 1,76 cents per share to 0,92 cents per
share. Net assets value per share decreased from 54,43 cents per share to 43,43
cents per share.
The future
The group has identified Information Technology Outsourcing, Services,
Enterprise Resource Planning and Enterprise Retail Solutions as future growth
areas. The long-term strategy encompasses a change of income mix from a largely
hardware distribution base to a mixture of distribution and the abovementioned
services. Some headway has already been made in this regard and various other
opportunities have been identified for exploration.
Accounting policies
As noted in our 2000 Annual Report, the group adopted the updated General
Accepted Accounting Practice, Accounting Statement 102, on Income Taxes. The
implementation was, however, only applied to the full year results as at 30
June 2000. Accordingly, the taxation charge for the six-month period ended 31
December 1999 has been restated, to reflect this change in accounting policy to
show a taxation charge of R 1 235 million (previously R nil).
Dividends
No dividend is proposed for the period under review.
For and on behalf of the board.
A Tugendhaft AJ Fourie
Chairman Chief Executive Officer
Registered office: 128 15th Street, Randjespark, Midrand, 1685
(PO Box 483, Halfway House, 1685).
Directors: A Tugendhaft*(Chairman), AJ Fourie(CEO), L Fourie, AS Mahomed, WH
van Niekerk*, CD Biddlecombe* (* Non-executive).
Company secretary: Mrs. K Beeslaar, 128 15th Street, Randjespark, Midrand, 1685
(PO Box 483, Halfway House, 1685).
Transfer secretaries: Mercantile Registrars Limited, 11 Diagonal Street,
Johannesburg, 2000
(PO Box 1053, Johannesburg, 2000)
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