| Thu 27 Mar 2003, 18:10 | | REVIEWED INTERIM RESULTS for the six months ended |
|
Pinnacle Technology Holdings Limited
(Registration number 1986/000334/06)
Share code: PNC ISIN: ZAE000022570
("the group" or "the company")
www.pinnacle.co.za
Group income statements
Audited
Reviewed Unaudited 30 Jun
31 Dec 31 Dec 2002
2002 2001 Restated
R 000"s R 000"s R 000"s
Revenue 176 765 143 827 358 548
Operating income before
finance charges 7 661 5 558 12 530
Net interest paid (2 725) (2 326) (4 729)
Net profit before taxation 4 936 3 232 7 801
Taxation (1 295) (1 083) (2 641)
Net profit for the period 3 641 2 149 5 159
Share of net income
from associates 7 - 1 953
Outside shareholders"
interest (744) (34) (599)
Earnings attributable to
ordinary shareholders 2 904 2 116 6 514
Earnings per share (cents) 3,9 2,9 4,4
Headline earnings per
share (cents) 3,9 2,9 4,4
Shares in issue
- at period end 148 607 148 070 148 607
- weighted average for
the year 148 607 148 070 148 249
The figures for the period ending 31 December 2001 needed no restatement, since
the transactions that needed restatement occurred prior to 31 December 2001 and
has been reflected as a prior year adjustment.
Segmental reports
Turnover Turnover Results Results
Reviewed Unaudited Reviewed Unaudited
31 Dec 31 Dec 31 Dec 31 Dec
2002 2001 2002 2001
R 000"s R 000"s R 000"s R 000"s
IT Infrastructure 160 401 141 458 4 825 4 416
Software & Storage 11 305 - 1 121 -
Services 4 863 2 369 (1 015) (1 183)
Property 196 - 5 -
Group balance sheets
Audited
Reviewed Unaudited 30 Jun
31 Dec 31 Dec 2002
2002 2001 Restated
R 000"s R 000"s R 000"s
ASSETS
Non-current assets 58 500 48 527 60 691
Fixed assets 28 983 24 963 28 206
Investment 11 939 5 530 14 413
Deferred taxation 16 124 18 033 16 927
Intangible assets 1 455 - 1 145
Current assets 114 988 97 603 123 286
Inventories 53 394 49 165 64 634
Accounts receivable 56 425 50 206 50 517
Bank and cash balances 5 168 (1 768) 8 135
Total assets 173 488 146 130 183 977
EQUITY AND LIABILITIES
Capital and reserves
Ordinary shareholders"
funds 73 359 65 836 70 455
Outside shareholders"
interest 3 551 1 081 2 126
Non-current liabilities
Long-term liabilities 14 236 12 251 12 597
Current liabilities 82 343 66 962 98 799
Accounts payable 60 377 46 073 74 417
Short-term loan 21 281 20 918 23 802
Taxation 685 (28) 581
Total equity and liabilities 173 488 146 130 183 977
Net asset value per
share ( cents) 49,4 44,5 47,4
The figures for the period ending 31 December 2001 needed no restatement, since
the transactions that needed restatement occurred prior to 31 December 2001 and
has been reflected as a prior year adjustment.
Summarised group cash flow statements
Audited
Reviewed Unaudited 30 Jun
31 Dec 31 Dec 2002
2002 2001 Restated
R 000"s R 000"s R 000"s
Cash (outflow to)/ inflow from
operating activities (1,996) (1,067) 25,531
Cash (outflow to)/ inflow from
investing activities (89) (1,567) (18,609
Cash (outflow to)/ inflow from
financing activities (882) 74 420
Net (decrease)/increase in cash and
cash equivalents (2,967) (2,560) 7,342
Cash and cash equivalents at
beginning of period 8,135 792 792
Cash and cash equivalents at
end of period 5,168 (1,768) 8,135
Group statement of changes in equity
2002 2001 2002 2001
Audited
30 Jun
Unaudited Audited 2002
Reviewed 31 Dec 30 Jun as
31 Dec 2001 2002 previously
2002 Restated Restated stated
R 000"s R 000"s R 000"s R 000"s
Changes in share capital 1,486 1,481 1,486 1,486
Balance at beginning of
period 1,486 1,481 1,481 1,481
Issue of shares - - 5 5
Changes in share premium 124,400 124,190 124,400 124,400
Balance at
beginning of period 124,400 124,190 124,190 124,190
Premium on shares issued - - 210 210
Non-distributable reserves 3,590 3,584 3,590 3,590
Balance at beginning
of period 3,590 3,584 3,584 3,584
Revaluation of land
and buildings - - 6 6
Retained earnings (56,117) (63,419) (59,021) (59,021)
Balance at beginning of
period (59,021) (65,534) (65,534) (65,534)
Net profit for the period 2,904 2,116 6,514 6,514
Ordinary shareholders"
equity at the end of
the period 73,359 65,836 70,455 70,455
Group overview
NOTES
OUR BUSINESS
Pinnacle"s core business activity is the supply of information technology
products and services to a wide spectrum of corporate, government and reseller
customers. With all the acquisitions made during the previous financial period,
the group is now divided into four distinct operating divisions, being the IT
infrastructure group, software and storage group, IT related services group and
the property group.
RESULTS
The board is pleased to announce an increase in operating income before
depreciation and tax of 44,6% and an increase in net profit after tax of 69,4%
for the six months ended 31 December 2002 compared to the six months ended 31
December 2001.
Earnings per share increased 36,7% to 3,9 cents per share and the net asset
value per share increased by 11,1% to 49,36 cents per share for the same
periods.
IT Infrastructure group
The core business of the group is the manufacture and supply of the Proline
brand of desktops, notebooks and fileservers. The continued worldwide downturn
and tough local trading conditions kept this group under pressure. Despite these
factors, the group performed satisfactorily.
Software and Storage group
This group is a new addition to Pinnacle and therefore has no historic
figures. The group consists of a 35% holding in Workgroup and a 60% holding in
Intelligent Systems. Workgroup is a value-add supplier of software and
distributes Microsoft, Symantec, Citrix, Veritas, Corel, Novell, Computer
Associates, Accpac, I.B.M., Logitech, Microsoft, Press, U.S. Robotics and
Borland.
Intelligent Systems is a distribution company specialising in digital storage
products, solutions and services. Both companies have exceeded their budgets for
the six months to 31 December 2002.
IT related services group
The IT related services group consist of Rentnet Rentals and Pinteq. Pinteq
concentrates on technical services and production. Rentnet Rentals specializes
in short-term computer and office equipment rentals and has made progress in
building a sound customer base. Successes in a number of national contracts have
ensured that Rentnet Rentals has exceeded its budgeted net profit considerably.
Property group
The property group holds land and buildings, which are utilised by
subsidiaries and third parties. The main objective of this group is to supply
affordable warehousing and offices. This group therefore strives to recover its
costs. For the six months ended 31 December 2002 this group ended above
breakeven.
DISPOSAL OF INTEREST DURING THE PERIOD
The board has identified Tswela Services as a non-core business and has
disposed of its 45% shareholding in Tswela Services for a total consideration of
R225,000 to the remaining shareholders.
RESTATEMENT OF ANNUAL FINANCIAL STATEMENTS
Following a review by the JSE Securities Exchange South Africa in conjunction
with the GAAP Monitoring Panel, the audited results in respect of the year ended
30 June 2002 had to be restated, primarily as a result of non-compliance by the
Group and the Company in certain circumstances with the latest South African
Statements of Generally Accepted Accounting Practice (GAAP). The details of the
adjustments are disclosed in the restated annual report for the year ended 30
June 2002.
For a full appreciation of the adjustments, shareholders are referred to the
restated annual report for the year ended 30 June 2002, which will be mailed
together with this announcement.
A revised audit report has been issued together with the restated 30 June
2002 results with no change to the unqualified audit opinion. The audit report
now states that the company and the group comply with Statements of GAAP. The
revised unqualified audit report is available for inspection at the registered
office of the company.
COMPLIANCE WITH GAAP
These interims have been reviewed by the company"s auditors, Du Toit, Greeff
and Du Plooy Incorporated and are compiled in accordance with South African
Statements of GAAP. The review report is available for inspection at the
registered office of the company.
ACCOUNTING POLICIES
The accounting policies used in the preparation of the interim financial
statements are consistent with those adopted in the Restated Annual Financial
Statements for the year ended 30 June 2002.
THE FUTURE
The group has completed a number of acquisitions and has opened a number of
new branches over the last 12 months. The next six to 12 months will be utilised
to consolidate and integrate these new companies and branches. There are no
immediate new acquisitions foreseen, but internal restructuring and refocusing
into new opportunities will ensure further growth and strengthening of the
group.
The company is also anticipating converting shares held by the remaining
minority shareholders in Pinnacle Holdings Limited into shares of Pinnacle
Technology Holdings Limited.
DIVIDEND
No dividend is proposed for the period under review.
By order of the board
Midrand
27 March 2003
Registered Office: Transfer Secretaries:
Pinnacle Park Computershare Investor Services Limited
269 16th Road Ground Floor
Randjespark 70 Marshall Street
Midrand Johannesburg, 2001
Directors:
C. Biddlecombe* (Chairman), A. J. Fourie (Chief Executive Officer),
L. Fourie, D. Lelo*, A. Tugenhaft*
*Non-executive
Auditor:
Du Toit, Greeff & Du Plooy Incorporated
Sponsor:
LPC Manhattan Sponsors (Pty) Ltd
