Pinnacle Holdings wants to lay rumours to rest as it addresses the concerns that have kept its share price on the back foot.

In view of a “substantial weakening” in its share price since the trading statement published on 8 August 2014, the company has issued a statement that aims to address “perceived concerns and hopefully lay to rest any rumours that may be circulating in the market”.

On 8 August, Pinnacle Holdings published a trading statement wherein it was reasonably certain that its results for the year ended 30 June 2014 will reflect a headline earnings per share (HEPS) of between 160 and 175 cents per share and earnings per share (EPS) of between 165 and 180 cents per share.

This compares to HEPS of 205.6 cents in the comparative period to 30 June 2013, a decline of between 15% and 22%, and to EPS of 205.8 cents, a decline of between 13% and 20%.

“During the last quarter of the financial year, Pinnacle’s revenue grew by a robust 7%, although the benefit of this was negated by lower margins and increased expenses,” the company states. “In addition, Pinnacle incurred material once-off charges relating to write downs on large holdings of inventory which were becoming end of life.

“It is important to note that there has not been any significant diminution in public sector business in the last quarter.”
Pinnacle Holdings also refers to the charges of bribery that have been brought against executive director Takalani Tshivhase.

“As announced on SENS on 2 July 2014 this matter has been postponed until 9 September 2014. There is no further information to report on this matter at this stage and shareholders will be advised once any new information becomes available.”

Despite these issues, the company is hoping to convey to shareholders that it’s business as usual at the distributor.

“The group remains focussed on its day to day business operations,” it states. “Its customers, all of its suppliers and financiers remain in place and continue to be supportive of the business. The CEO, the executive and non-executive directors remain fully committed to the group and are, as usual, fully focussed on the business. The group continues to practice the highest standards of corporate governance and transparency.”