PINNACLE HOLDINGS LIMITED - Trading statement

Trading statement

Pinnacle Holdings Limited
Registration number 1986/000334/06
Share Code: PNC
ISIN: ZAE000184149
(“Pinnacle” or “the Group” or “the Company”)

TRADING STATEMENT

The trading statement is published in compliance with paragraph 3.4(b) of the JSE
Listings Requirements.

Revenue, Earnings per Share (“EPS”) and Headline Earnings per Share (“HEPS”)

Shareholders are advised that the Company is reasonably certain that its interim
results for the 6 months ended 31 December 2015 will reflect the following:

                          6 months to             6 months to         6 months to
                       31 December 2014        31 December 2015    31 December 2015
                             Actual             Expected change     Expected Values
                                                  percentage
  Revenue                   R3,638 million          +17% to +20%     R4,250 to R4,350
                                                                               million
  Headline earnings           R125 million         +16% to +20%          R145 to R150
                                                                               million
  EPS                           78.2 cents         +16% to +21%         91 to 95 cents
  HEPS                          80.4 cents         +13% to +18%         91 to 95 cents

   A. Revenue for the six months ended 31 December 2015 grew in a satisfactory
      manner with pleasing growth coming from our infrastructural products and
      new technologies.
   B. As previously highlighted to the market, gross margins have continued to be
      under pressure and, as a percentage of revenue, will be approximately 1.5%
      lower than the comparative period. This was brought about by competitive
      pressures and product mix as the group continues its progress into large
      technology projects which typically carry lower margins.
   C. Cost management was acceptable, with increased efficiencies resulting in
      operating expenses, as a percentage of revenue, decreasing by approximately
      1.5% when measured against the prior period, to compensate for the drop in
      margin noted above.
   D. The increase in the investment in Datacentrix Holdings Ltd (“Datacentrix”),
      from 34.9% to 46% as at the end of December 2015, through the issue of
      shares in Pinnacle, has resulted in a small dilution in HEPS. The Board is
      confident, though, that the investment will continue to enhance returns in the
      future. As previously communicated to shareholders, subsequent to 31
      December 2015, the investment in Datacentrix increased to 55.3% following
      the closure of the mandatory offer to shareholders.
The above information has not been reviewed or reported on by the Company's
auditors. The Company's unaudited interim financial results for the six months ended
31 December 2015 are expected to be published on SENS on or about 29 February
2016.

Midrand
3 February 2016

Sponsor: Deloitte & Touche Sponsor Services (Pty) Ltd

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