| Thu 21 Feb 2002, 0:00 | | Pinnacle Technology Holdings Limited - Interim Res |
|
ended 31 December 2001
Pinnacle Technology Holdings Limited
Share Code:PNC
ISIN Code : ZAE 000022570
COMMENTS
Group overview
NOTES
Our business
Pinnacle's core business activity remains the supply 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 board is pleased to announce an increase in operating income before
depreciation and tax of 21% and an increase in net profit after tax of 98%
for the six months ended 31 December 2001. The cost savings actions
announced at the previous publication clearly had their effect during the
last six months.
The decrease in revenue was due to the decision taken to concentrate on more
profitable business. Part of this decision was to scale down on the Retail
business and to increase the presence in the corporate and government
sectors. This proved to be valuable business for the group and the potential
certainly exists to improve our presence in these market segments.
Earnings per share increased by 100% to 1,43 cents per share and headline
earnings increased 100% to 1,43 cents per share. Net asset value per share
increased by 2,4% to 44,46 cents per share.
INVESTMENTS
On the demise of SDD the group also made the following
investments/acquisitions:
Commencement of the Nelspruit branch which has been operational since
November 2001
Commencement of the Bloemfontein branch which became operational in January
2002
A 35% investment in Explix Technologies (Pty)Limited, which has taken over
the activities of "Workgroup". Workgroup was a subsidiary of Siltek which
went into liquidation. With more than 60% of the specialist software
distribution market in South Africa in its hands, workgroup was the leading
full-service software distribution company in the country. It distributed
software to systems integrators, value-added resellers, specialist dealers
and retail channels and had in its stable market-leading brands from major
software manufacturers, including IBM/Lotus, Microsoft, Novell, Computer
Associates, Citix Systems, Corel, Adobe, Symantec and Vivendi. Workgroup was
more than just a distributor of software products; it also focused on
providing added value through the full service it offered to its network of
customers through its e-commerce community strategy.
With the full management team intact, the board believes that the investment
in Explix Technology (Pty)Limited will ensure that we will be the leading
player in the software distribution market.
LONG-TERM LOANS
During the first half of the year the group lent R2,3 million to Quandry.
This resulted in an investment income of R439 956 for the period ended 31
December 2001.
In accordance with the acquisition agreement of Explix Technologies, the
group has so far lent R2,1 million to Explix. This loan carries interest of
10% per annum.
THE FUTURE
The group is still in negotiations to open another two branches during the
second half of the financial year. These branches will be situated in
Namibia and Botswana.
With the acquisitions made during the first half of the year and revised
marketing strategy implemented, the group is set to perform satisfactorily.
The longer term vision of the group is to become the IT product and service
supplier of choice to the Government, Corporate and SMME market through our
various subsidiary companies both in South Africa and beyond our borders.
COMPLIANCE WITH GAAP
These interims have been compiled with Generally Accepted Accounting
Practices.
ACCOUNTING POLICIES
The accounting policies used in the preparation of the Interim Financial
Statements are consistent with those adopted in the Annual Financial
Statements for the year ended 31 June 2001.
Johannesburg
22 March 2002
GROUP BALANCE SHEET
Unaudited Unaudited Audited
31 Dec 31 Dec 30 Jun
2001 2000 2001
R 000's R 000's R 000's
ASSETS
Non-current assets 48 527 42 849 43 424
Fixed assets 24 963 24 351 24 158
Investment 150 0 150
Long-term loans 5 380 0 0
Deferred taxation 18 033 18 498 19 116
Current assets 97 603 114 726 97 459
Inventories 49 165 46 087 43 566
Accounts receivable 50 206 66 161 53 100
Bank and cash balances (1 768) 2 478 792
Total assets 146 130 157 575 140 883
EQUITY AND LIABILITIES
Capital and reserves
Ordinary shareholders' funds 65 836 64 230 63 720
Outside shareholders' interest 1 081 1 118 1 047
Non-current liabilities
Long-term liabilities 12 251 12 555 12 177
Current liabilities 66 962 79 672 63 939
Accounts payable 46 073 66 637 45 227
Short-term loan 20 918 13 034 18 712
Taxation (28) 1 0
Total equity and liabilities 146 130 157 575 140 883
Net asset value per
share ( cents) 44,46 43,43 43,03
SUMMARISED GROUP CASH FLOW STATEMENT
Unaudited Unaudited Audited
31 Dec 31 Dec 30 Jun
2001 2000 2001
R 000's R 000's R 000's
Cash inflow from/(outflow to)
operating activities (1 067) 2 890 (1 003)
Cash (outflow to)/inflow from
investing activities (1 567) (114) 2 601
Cash outflow to financing
activities 74 (640) (1 148)
Net increase/(decrease) in cash
and cash equivalents (2 560) 2 136 450
Cash and cash equivalents at
beginning of period 792 342 342
Cash and cash equivalents at
end of period (1 768) 2 478 792
GROUP INCOME STATEMENT
Unaudited Unaudited Audited
31 Dec 31 Dec 30 Jun
2001 2000 2001
R 000's R 000's R 000's
Revenue 143 827 156 738 295 749
Operating income before
depreciation 6 321 5 224 7 777
Depreciation (762) (830) (1 607)
Operating income after
depreciation 5 558 4 394 6 170
Net interest paid (2 326) (2 622) (5 855)
Net profit before taxation 3 232 1 772 314
Taxation (1 083) (687) (69)
Net profit after taxation 2 149 1 085 245
Exceptional items 0 0 662
Net profit for the year 2 149 1 085 907
Outside shareholders' interest (34) (27) (23)
Earnings attributable to ordinary
shareholders 2 116 1 058 884
Earnings per share (cents) 1,43 0,72 0,60
Headline earnings per
share (cents) 1,43 0,72 0,15
Shares in issue 148 070 147 897 148 070
GROUP STATEMENT OF CHANGES IN EQUITY
Unaudited Unaudited Audited
31 Dec 31 Dec 30 Jun
2001 2000 2001
R 000's R 000's R 000's
Changes in share capital 1 481 1 479 1 481
Balance at beginning of period 1 481 1 450 1 450
Issue of shares 0 29 31
Changes in share premium 53 179 53 265 53 179
Balance at beginning of period 53 179 52 123 52 123
Premium on shares issued 0 1 142 1 210
Goodwill set off 0 0 (154)
Non-distributable reserves 3 584 3 535 3 584
Balance at beginning of period 3 584 3 535 3 535
Revaluation of land and
buildings 0 0 49
Retained earnings 7 593 5 951 5 477
Balance at beginning of period 5 477 4 593 4 594
Net profit for the period 2 116 1 358 884
Ordinary shareholders' equity
at the end of the period 65 836 64 230 63 720
