Pinnacle Technology Holdings has reported that its revenue increased by 13% to R6,6-billion for the year ended 30 June 2013.
EBITDA increased by 18% to R493-million, headline earnings per share (HEPS) increased 17% to 205,6 cents and dividends per share increased by 17% to 41 cents.
The turnover increase was aided by contributions from some newly acquired entities in the Pinnacle Africa division.
The group reports that Centrafin, the financial services division, has delivered net profit growth of 47%, while Infrasol, the services division, has struggled to repeat the growth experienced in the last financial year due to some large projects not materialising in time. The margin has remained constant at a group level as a result of gains in higher margin products offsetting pressure on margins on run rate products.
Good cost control, particularly in the AxizWorkgroup division, resulted in expenses growing at a lower rate than revenue, allowing overheads as a percentage of turnover to continue improving, this year from 8,4% to 8,1%.
Distribution grew turnover by 13% and EBITDA by 17% year-on-year, due largely to operating efficiencies and excellent control on the expenditure side.
Core ICT spending in the market during the second half of the year has been tight, particularly in the retail sector where both margins and volumes were under pressure due to the decline in consumer demand.
Promising growth was experienced in value added areas including security, cabling, racking and automation, which supported margin improvement.
The Projects and Services division was unable to repeat the growth experienced in the second half of last year even though revenue increased by 23% over the first six months of the year.
Financial Services increased operating profit by 48%. Centrafin continues to grow its book strongly – now at R270-million from R150-million a year ago.