| Thu 19 Sep 2002, 18:13 | | Pth - Audited Financial Results For The Year Ended |
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PTH - Audited financial results for the year ended 30 June 2002
Pinnacle Technology Holdings Limited
Share code: PNC ISIN: ZAE000022570
("PTH", "the group" or "the company")
www.pinnacle.co.za
Audited financial results for the year ended 30 June 2002
NOTES
Statement
The following are extracts from the unqualified audited financial
statements of the company, which are available for inspection at
Pinnacle Technology Holdings, 269 16th Street, Randjespark, Midrand.
Review of Trading Results
* Group revenue increased by 21% to R359 million
* Operating margin increased by 69% to 3,5%
* Net finance cost reduced by 19,2%
* Net profit after interest and tax increased seven-fold from R0,9
million to R6,6 million
* Headline earnings per share up 28-fold to 4,44 cents
* R27,5 million cash generated from operations
* R21,2 million invested into new ventures and assets
Corporate Activities
* PTH acquired a 35% share in Explix Pty Ltd trading as Workgroup
during November 2001. Workgroup specialises in the distribution of
software and historically had a market share of 65% of the South African
market. PTH is set to capitalise on this advantage.
* PTH has bought a 59% stake in Intelligent Systems, effective from 1
January 2002. Intelligent Systems distributes digital storage products,
solutions and services and holds the rights to a broad range of storage
technologies and products.
* PTH has formed a joint venture to establish Rentnet. Rentnet offers
a seamless solution to companies, ranging from daily rentals on
equipment to long-term full maintenance rentals.
* PTH acquired a 45% share in Tswela Services. Tswela Services, an
empowerment company, specialises in the training of software packages
and their application in the unique environment of their customers.
* Pinnacle Micro, the IT Infrastructure group has opened the
following branches:
* Nelspruit, trading since January 2002
* Bloemfontein, trading since February 2002
* Windhoek, Namibia, trading since February 2002
* Gabarone, Botswana, trading since March 2002
* Pinnacle Micro closed its branch in Cape Town and formed a joint
venture with the previous management of SDD Cape Town.
Post-Balance Sheet Events
There have been no material changes between the year-end date and the
date of this report.
Prospects
* The group will focus on incorporating the new acquisitions into the
group.
* The group will focus on organic growth for the coming year.
Accounting Policies
* The accounting policies for the year ended 30th June, 2002 have
been consistently applied throughout the year and are unchanged from the
previous year.
* The accounting policies applied during the year under review are in
accordance with South African Statements of Generally Accepted
Accounting Practice.
Directorate
* In line with the diversification into other sectors of the IT arena
a new-look board will be proposed by the directors at the Annual General
Meeting. Mr C. Biddlecombe to be appointed as executive chairman, while
the current chairman Mr Tugendhaft, will continue to serve as a non-
executive director. Mr A. Mahomed and Mr van Niekerk retire as
directors. Mr Dave Lello will join the board as non-executive director.
Dividends
* No dividends were declared or proposed during the current year.
* The directors, however, have reviewed the dividend policy and will
in future support a dividend to be paid, subject to a favourable
financial position of the company at the time.
Auditors
Du Toit Greef & Du Plooy Incorporated
PO Box 8318, Centurion, 2146
200 Witch-hazel Avenue, Highveld Technopark, Centurion, 0157
Group consolidated income statement
2002 2001
R 000`s R 000`s
Revenue 358 548 295 749
Operating income before depreciation 14 402 7 777
Depreciation (1 731) (1 607)
Operating income after depreciation 12 670 6 170
Net interest paid (4 729) (5 855)
Net profit before taxation 7 941 314
Taxation (2 641) (69)
Profit for year 5 300 245
Income from associates 1 917 -
Outside shareholders` interest (622) (23)
Net profit for year 6 595 222
Exceptional items - 662
Earnings attributable to ordinary shareholders 6 595 884
Earnings per share (cents) 4,44 0,60
Headline earnings per share (cents) 4,44 0,15
Shares in issue (000`s) 148 607 148 070
Group consolidated balance sheet
2002 2001
R 000`s R 000`s
ASSETS
Non-current assets 60 712 43 424
Fixed assets 28 206 24 158
Investment 14 377 150
Cost of investment in subsidiaries 1 201 -
Deferred taxation 16 927 19 116
Current assets 123 286 97 459
Inventories 64 634 43 566
Accounts receivable 50 517 53 100
Bank and cash balances 8 135 792
Total assets 183 997 140 883
EQUITY AND LIABILITIES
Capital and reserves
Ordinary shareholders` funds 70 452 63 720
Outside shareholders` interest 2 149 1 047
Non-current liabilities
Long-term liabilities 12 597 12 177
Current liabilities 98 799 63 939
Accounts payable 74 417 45 227
Short-term loan 23 802 18 712
Taxation 581 -
Total equity and liabilities 183 997 140 883
Net asset value per share ( cents) 48,85 43,03
Group Statement of changes in equity
2002 2001
R 000`s R 000`s
Changes in share capital 1 486 1 481
Balance at beginning of year 1 481 1 450
Issue of shares 5 31
Changes in share premium 53 304 53 179
Balance at beginning of year 53 179 52 123
Premium on shares issued 210 1 210
Goodwill set-off (84) (154)
Non-distributable reserves 3 590 3 584
Balance at beginning of year 3 584 3 535
Revaluation of land and buildings 6 49
Retained earnings 12 072 5 477
Balance at beginning of year 5 477 4 594
Net profit for year 6 595 884
Ordinary shareholders` equity at end of year 70 452 63 720
Summarised group cash flow statement
2002 2001
R 000`s R 000`s
Cash inflow from/(outflow to) operating
Activities 27 448 (1 003)
Cash (outflow to)/inflow from investing
activities (21 143) 2 601
Cash outflow to/(inflow from) financing
activities 1 037 (1 148)
Net increase in cash and cash equivalents 7 342 450
Cash and cash equivalents at beginning of year 792 342
Cash and cash equivalents at end of year 8 135 792
Date: 19/09/2002 05:52:00 PM Produced by the JSE SENS Department
