Pinnacle Technology Holdings has weathered the storm of the current recession, posting solid results showing a 14% increase in revenue to R2,8-billion and an operating profit up 4,9% to R159-million.
Like most other local distributors, the group says that while it has reduced operating expenses, it was hit with a R32-million foreign exchange loss in October last year. Its full-year loss on foreign exchange was R24,9-million.
Having said that, net profit for the year was up 5% to R110,1-million.
"It is particularly rewarding that Pinnacle overcame the challenges raised by the recessive global economies, policy changes in the South African political landscape and the foreign exchange losses suffered in October 2008 to deliver positive growth, whilst controlling expenditure and improving the strength of its balance sheet," the company says. It is also bullish about the future. "New technologies in virtualisation, security, networking and communication as well as the continued convergence of voice, data and video in day-to-day business and private applications will offer opportunities for technology providers," Pinnacle says.
"The launch of Microsoft`s new operating system, Windows 7 as well as the expected launch of Microsoft Office 2010 will create opportunities for both hardware and software resellers. Technology advances and reduced bandwidth and technology costs will contribute to the adoption of new technology in the SME and residential markets. Implementation of wired and wireless residential and small commercial networks is expected to become a main stream business opportunity.
"Pinnacle continues to reap the rewards of the diversification strategies embarked on with the acquisition of WorkGroup, RentNet and Tricon as well as the continued efforts to expand the range of international branded products offered by the Group, and the Board trusts that it will be able to report positive feedback in the near future," the company says.