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PINNACLE TECHNOLOGY HOLDINGS LIMITED
INTERIM REPORT FOR THE 6 MONTHS ENDED 31 DECEMBER 1999
GROUP INCOME STATEMENT
UNAUDITED UNAUDITED AUDITED
31 DECEMBER 31 DECEMBER 30 JUNE
1999 1998 1999
R000'S R000'S R000'S
REVENUE 156 174 179 386 362 237
OPERATING PROFIT BEFORE INTEREST
AND EXCEPTIONAL ITEMS 6 548 8 382 18 314
EXCEPTIONAL ITEMS 835 - -
PROFIT BEFORE INTEREST AND TAXATION 7 383 8 382 18 314
INTEREST PAID (3 020) (1 890) (2 434)
PROFIT BEFORE TAXATION 4 363 6 492 15 880
TAXATION - (2 302) (3 454)
NET PROFIT BEFORE OUTSIDE
SHAREHOLDERS INTEREST 4 363 4 190 12 426
OUTSIDE SHAREHOLDERS INTEREST (165) (986) (4 060)
PROFIT ATTRIBUTABLE TO ORDINARY
SHAREHOLDERS 4 198 3 204 8 366
EARNINGS PER SHARE (CENTS) 3,47 2,65 6,92
FULLY DILUTED EARNINGS
PER SHARE (CENTS) 3,42 2,65 6,92
HEADLINE EARNINGS PER SHARE (CENTS) 2,78 2,65 6,92
FULLY DILUTED HEADLINE EARNINGS
PER SHARE (CENTS) 2,74 2,65 6,92
SHARES IN ISSUE (WEIGHTED AVERAGE)
ISSUED 120 882 120 882 120 882
DILUTED 122 889 120 882 120 882
GROUP BALANCE SHEET
UNAUDITED UNAUDITED AUDITED
31 DECEMBER 31 DECEMBER 30 JUNE
1999 1998 1999
R000'S R000'S R000'S
CAPITAL EMPLOYED
SHARE CAPITAL 1 450 1 209 1 209
SHARE PREMIUM 55 043 45 650 45 650
NON-DISTRIBUTABLE RESERVE 3 156 3 156 3 156
RETAINED LOSSES (14 396) (18 640) (20 680)
SHAREHOLDERS INTEREST 45 253 31 375 29 335
OUTSIDE SHAREHOLDERS INTEREST 1 385 2 128 9 069
DIRECTORS' LOANS 1 557 2 030 2 533
LONG-TERM LIABILITIES 15 454 3 588 16 891
DEFERRED TAXATION - - 32
63 649 39 121 57 860
EMPLOYMENT OF CAPITAL
FIXED ASSETS 27 728 16 559 30 063
NET CURRENT ASSETS 35 921 22 562 27 797
CURRENT ASSETS 108 119 120 354 105 063
INVENTORIES 44 084 42 051 50 837
CASH AT BANK 2 034 9 677 4 697
ACCOUNTS RECEIVABLE 62 001 68 626 49 529
CURRENT LIABILITIES 72 198 97 792 77 266
ACCOUNTS PAYABLE 53 848 61 675 55 085
SHORT-TERM LOAN 17 954 29 832 17 824
TAXATION 396 6 285 4 357
63 649 39 121 57 860
NET ASSET VALUE PER SHARE (CENTS) 31,22 25,96 24,27
SUMMARISED GROUP CASH FLOW STATEMENT
UNAUDITED UNAUDITED AUDITED
31 DECEMBER 31 DECEMBER 30 JUNE
1999 1998 1999
R000'S R000'S R000'S
OPERATING ACTIVITIES (6 924) 3 080 (3 714)
INVESTING ACTIVITIES 4 993 (20 774) (20 104)
FINANCING ACTIVITIES (463) 27 371 35 750
NET (DECREASE)/INCREASE IN CASH AND
CASH EQUIVALENTS (2 394) 9 677 11 932
CASH AND CASH EQUIVALENTS AT
THE BEGINNING OF THE PERIOD 4 698 - (7 234)
CASH AND CASH EQUIVALENTS AT
THE END OF THE PERIOD 2 304 9 677 4 698
GROUP RESULTS
REVIEW FOR THE SIX MONTHS ENDED 31 DECEMBER 1999
THE BOARD IS PLEASED TO REPORT INCREASED ATTRIBUTABLE EARNINGS FOR THE GROUP
FROM R3,204 MILLION TO R4,198 FOR THE SIX-MONTH PERIOD ENDED
31 DECEMBER 1999. THIS WAS ACHIEVED DESPITE A DECLINE IN REVENUE AS A RESULT OF
THE DISPOSAL OF PINNACLE ZIMBABWE AND THE REVALUATION OF THE PROFITABILITY OF
THE RETAIL BUSINESS SEGMENT. THE GROUP BENEFITED FROM A GROSS MARGIN
IMPROVEMENT AND EFFECTIVE OPERATING COST CONTROLS. EARNINGS PER SHARE AND FULLY
DILUTED EARNINGS PER SHARE INCREASED RESPECTIVELY BY
30,94% FROM 2,65 TO 3,47 AND 29,06% FROM 2,65 TO 3,42. HEADLINE EARNINGS PER
SHARE AND FULLY DILUTED HEADLINE EARNINGS PER SHARE INCREASED RESPECTIVELY BY
4,91% FROM 2,65 TO 2,78 AND 3,40% FROM 2,65 TO 2,74.
INTERIM DIVIDEND
NO DIVIDEND IS PROPOSED FOR THE PERIOD UNDER REVIEW.
PROSPECTS
IT IS ANTICIPATED THAT THE COMPANY WILL CONTINUE TO SHOW GROWTH IN EARNINGS AS
A RESULT OF A FOCUSSED PINNACLE ON ITS CORE BUSINESS ACTIVITIES, BEING A
LEADING SUPPLIER OF INFORMATION TECHNOLOGY PRODUCTS AND SERVICES. ONGOING
EFFORTS IN THE AREAS OF NEW PRODUCTS AND PRODUCT QUALITY AND THE CONTROL OF
OPERATIONAL COSTS WILL CONTRIBUTE TO THE GROWTH IN EARNINGS.
THE BOARD WOULD LIKE TO THANK STAFF, CLIENTS AND SHAREHOLDERS FOR THEIR
CONTINUED SUPPORT, COMMITMENT AND ENCOURAGEMENT.
FOR AND ON BEHALF OF THE BOARD
A TUGENDHAFT A J FOURIE
(CHAIRMAN) (CHIEF EXECUTIVE OFFICER)
PINNACLE TECHNOLOGY HOLDINGS LIMITED
REGISTRATION NUMBER 86/00334/06
128 15TH STREET, RANDJESPARK, MIDRAND, 1685
PO BOX 483, HALFWAY HOUSE, 1685.
DIRECTORS: A TUGENDHAFT* (CHAIRMAN), A J FOURIE (CEO), L FOURIE,
A S MAHOMED AND W H VAN NIEKERK. * NON-EXECUTIVE
TRANSFER SECRETARIES: MERCANTILE REGISTRARS LIMITED, FIRST NATIONAL HOUSE, 11
DIAGONAL STREET, JOHANNESBURG, 2000.
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