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PINNACLE HOLDINGS LIMITED - Unaudited interim results for the six months ended 31 December 2016

Release Date: 02/03/2017 15:30
Code(s): PNC     PDF:  
Wrap Text
Unaudited interim results for the six months ended 31 December 2016

PINNACLE HOLDINGS LIMITED
Registration number 1986/000334/06  
Share code: PNC 
ISIN: ZAE000184149
(“Pinnacle” or “the Group” or “the Company”)
www.pinnacleholdings.co.za
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 
2016
AT A GLANCE
REVENUE UP 47%
OPERATING PROFIT UP 60%
CORE EPS UP 17%
CASH GENERATED R592 million
CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND 
OTHER COMPREHENSIVE INCOME
                             Half year   Half year    Full year
                                31 Dec      31 Dec       30 Jun
                                  2016        2015         2016
                             Unaudited   Unaudited      Audited
                                 R’000       R’000        R’000
Revenue                      6 345 738   4 330 869   10 969 132
Cost of sales               (5 219 096) (3 773 894)  (9 305 726)
Gross profit                 1 126 642     556 975    1 663 406 
Operating expenses            (717 065)   (313 849)    (984 244)
Selling expenses               (35 546)    (30 383)     (69 450)
Employee expenses             (577 513)   (238 244)    (806 789)
Administration expenses        (99 764)    (50 607)    (141 322)
Gain on discounting of 
 finance lease agreements        2 248         692        1 619
Profit on foreign exchange      (6 490)      4 693        6 384 
Fair value adjustment on 
 acquisition of former 
 associate                           –           –      (17 654)
Profit on disposal of 
 former subsidiary                   –           –       42 968
EBITDA *                       409 577     243 126      679 162
Depreciation and amortisation  (44 996)    (15 319)     (63 284)
Operating profit before 
 interest and taxation         364 581     227 807      615 878
Net finance costs              (54 205)    (48 187)    (108 694)
Investment income               14 718       6 147       17 617
Interest paid                  (68 923)    (54 334)    (126 311)
Share of equity accounted 
 associate income                    –      22 039       22 702
Profit before taxation         310 376     201 659      529 886
Taxation                       (96 031)    (51 155)    (148 283)
Net profit for the period      214 345     150 504      381 603
Owners of the Company          178 746     150 383      341 652
Non-controlling interests       35 599         121       39 951
Other comprehensive income: 
Items that will not be 
 reclassified into profit 
 or loss                             –           –      (23 825)
Realisation of 
 non-distributable reserve 
 on disposal of properties           –           –      (23 825)
Items that can be reclassified 
 into profit or loss             3 353       4 826        7 811
Exchange differences from 
 translating foreign 
 operations                      1 031         248        2 126
Cash flow hedge                  2 322       4 578        5 685
Total comprehensive income 
 for the period                217 698     155 330      365 589
Attributable to:
Owners of the Company          182 099     155 209      325 638
Non-controlling interests       35 599         121       39 951
* Earnings before interest, taxation, depreciation and 
  amortisation.
RECONCILIATION OF HEADLINE EARNINGS AND CORE EARNINGS
                             Half year   Half year    Full year
                                31 Dec      31 Dec       30 Jun
                                  2016        2015         2016
                             Unaudited   Unaudited      Audited
                                 R’000       R’000        R’000
Net profit for the period 
 attributable to ordinary 
 shareholders                  178 746     150 383      341 652
Fair value adjustment on 
 acquisition of former 
 associate net of taxation           –           –       13 700
Fair value adjustment on 
 acquisition of former 
 associate                           –           –       17 654
Less: Taxation thereon               –           –       (3 954)
Profit on sale of property, 
 plant and equipment net 
 of taxation                      (688)       (579)      (1 492)
Profit on sale of property, 
 plant and equipment              (955)       (804)      (2 072)
Less: Taxation thereon             267         225          580
Profit on sale of former 
 subsidiary net of taxation          –           –      (27 565)
Profit on sale of former 
 subsidiary                          –           –      (42 968)
Less: Taxation thereon               –           –       15 403
Headline earnings              178 058     149 804      326 295
Amortisation of intangibles 
 net of taxation                 6 998           –       12 052
Amortisation of intangibles      9 720           –       16 739
Less: Taxation thereon          (2 722)          –       (4 687)
Core earnings                  185 056     149 804      338 347
Total number of shares in 
 issue ('000)
–  Total issued less 
    treasury shares            166 733     164 240      171 226
–  Weighted average            167 858     159 244      164 992
FINANCIAL REVIEW
                             Half year   Half year    Full year
                                31 Dec      31 Dec       30 Jun
                                  2016        2015         2016
                             Unaudited   Unaudited      Audited
Performance per 
 share (cents)
Basic and diluted earnings 
 per share                       106.5        94.4        207.1 
Headline and diluted 
 headline earnings per 
 share *                         106.1        94.1        197.8
Core and diluted core 
 earnings per share *            110.2        94.1        205.1
Dividend cover                     5.4           –            –
Returns (%) 
Gross profit                      17.8        12.9         15.2 
Operating expenses               (11.3)       (7.2)        (9.0)
EBITDA **                          6.5         5.6          6.2 
Operating profit before 
 interest and taxation             5.7         5.3          5.6
Effective tax rate ***            30.9        28.5         29.2
Net profit                         3.4         3.5          3.5
Return on equity                  16.9        17.8         18.8
  * The Company has no dilutionary instruments in issue.
 ** Earnings before interest, taxation, depreciation and 
    amortisation.
*** Based on profit before tax excluding share of equity 
    accounted associate income.
CONDENSED SEGMENTAL ANALYSIS
                             Half year   Half year    Full year
                                31 Dec      31 Dec       30 Jun
                                  2016        2015         2016
                             Unaudited   Unaudited      Audited
                                 R’000       R’000        R’000
Revenue 
ICT Distribution             4 751 162   4 262 307    9 408 761
Services and Solutions       1 772 964           –    1 608 180
Financial Services              85 887      71 378      148 840
Group Central Services               –           –            –
Less: Intra-segmental 
 revenue                      (264 275)     (2 816)    (196 649)
                             6 345 738   4 330 869   10 969 132
EBITDA **
ICT Distribution               210 631     186 430      384 652
Services and Solutions         134 745           –      152 710
Financial Services              62 394      49 239      100 664
Group Central Services           1 807       7 457       41 137
                               409 577     243 126      679 162
Reconciliation of profit
Segment EBITDA                 409 577     243 126      679 162
Depreciation and amortisation  (44 996)    (15 319)     (63 284)
Net finance costs              (54 205)    (48 187)    (108 694)
Share of equity accounted 
 associate income                    –      22 039       22 702
Profit before taxation         310 376     201 659      529 886
Net operating assets
ICT Distribution             1 114 464   1 005 570    1 100 741
Services and Solutions         801 167           –      746 497
Financial Services             176 304     131 812      151 203
Group Central Services         392 881     701 482      411 076
                             2 484 816   1 838 864    2 409 517
** Earnings before interest, taxation, depreciation and 
   amortisation.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
                             Half year   Half year    Full year
                                31 Dec      31 Dec       30 Jun
                                  2016        2015         2016
                             Unaudited   Unaudited      Audited
                                 R’000       R’000        R’000
Opening balance              2 409 517   1 545 121    1 545 121 
Shares (repurchased)/issued    (70 602)    110 848      191 966
Treasury shares purchased       (3 756)          –            –
Profit for the period          214 345     150 504      381 603
Other comprehensive income       1 031         248        2 126
Cash flow hedge reserve          2 322       4 578        5 685
Transactions with 
 investees/non-controlling 
 interests                     (34 694)     27 565      283 016
Dividend paid                  (33 347)          –            –
Closing balance              2 484 816   1 838 864    2 409 517
Attributable to:
Owners of the Company        2 154 740   1 838 368    2 086 175
Non-controlling interests      330 076         496      323 342
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
                             Half year   Half year    Full year
                                31 Dec      31 Dec       30 Jun
                                  2016        2015         2016
                             Unaudited   Unaudited      Audited
                                 R’000       R’000        R’000
ASSETS
Non-current assets           1 121 779   1 033 319    1 100 391
Property, plant and 
 equipment                     118 203      62 840      120 011
Intangible assets and 
 goodwill                      486 447     126 056      506 663
Investment in associate              –     442 569            –
Finance lease receivables      429 206     369 373      408 020
Deferred taxation               87 923      32 481       65 697
Current assets               3 808 788   2 680 863    3 912 260
Inventories on hand            777 741     942 679      832 538
Inventories in transit          70 206      65 495      125 187
Short-term loans                     –       2 429            –
Derivative financial asset       1 800           –            –
Trade and other 
 receivables                 2 247 448   1 469 469    2 524 373
Finance lease receivables      222 640     169 132      178 663
Taxation receivable              6 430          43       10 006
Cash and cash equivalents      482 523      31 616      241 493
Total assets                 4 930 567   3 714 182    5 012 651
EQUITY AND LIABILITIES
Capital and reserves         2 484 816   1 838 864    2 409 517
Share capital and premium      122 988     112 528      193 646
Treasury shares                (43 047)    (72 856)     (72 856)
Non-distributable reserves      37 139      61 794       36 107
Cash flow hedge reserve            600      (2 829)      (1 722)
Accumulated profits          2 037 060   1 739 731    1 931 000
Non-controlling interests      330 076         496      323 342
Non-current liabilities        479 928      35 806      432 612
Interest-bearing liabilities   403 077         374      353 416
Derivative financial 
 liability                           –           –        3 444
Deferred revenue                14 144         437       29 213
Deferred taxation               62 707      34 995       46 539
Current liabilities          1 965 823   1 839 512    2 170 522
Trade and other payables     1 730 206   1 302 719    2 026 899
Interest-bearing 
 liabilities                       141     315 177          154
Derivative financial 
 liability                           –      19 914       16 154
Short-term loans                     –      28 501            –
Deferred revenue               205 802      12 662       96 111
Taxation payable                29 674      13 436       12 619
Bank overdrafts                      –     147 103       18 585
Total equity and 
 liabilities                 4 930 567   3 714 182    5 012 651
Capital management 
Net asset value per 
 share (cents)                 1 292.3     1 119.3      1 218.4
Net tangible asset value 
 per share (cents)             1 000.6     1 042.6        922.5
Working capital management
Investment in working 
 capital (R'000)             1 159 387   1 162 262    1 359 088
Liquidity and solvency
Debt to equity (%)                18.7        26.7         18.8
Current ratio (excluding 
 stock in transit)                 2.0         1.5          1.9
Acid test (excluding stock
 in transit)                       1.6         0.9          1.4
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
                             Half year   Half year    Full year
                                31 Dec      31 Dec       30 Jun
                                  2016        2015         2016
                             Unaudited   Unaudited      Audited
                                 R’000       R’000        R’000
Profit before taxation         310 376     201 659      529 886
Adjusted for:
Finance income received        (14 718)     (6 147)     (17 617)
Finance expenses paid           68 923      54 334      126 311
Non-cash flow items             43 106      (7 801)      19 137
Changes in working capital     184 632     (58 905)      90 178
Cash generated by operating 
 activities                    592 319     183 140      747 895
Net finance costs              (54 205)    (48 187)    (108 694)
Finance income received         14 718       6 147       17 617
Finance expenses paid          (68 923)    (54 334)    (126 311)
Taxation paid                  (81 458)    (49 744)    (180 411)
Dividends received from 
 equity accounted investment         –       8 170        8 170
                               456 656      93 379      466 960
Cash flows from investing 
 activities 
Property, plant and 
 equipment acquired            (18 597)     (7 334)     (18 222)
Proceeds on disposals of 
 property, plant and 
 equipment                       2 400       1 921        1 306
Proceeds on disposals of 
 assets classified as 
 held-for-sale                       –     226 115      226 116
Assets classified as 
 held-for-sale acquired              –        (617)        (617)
Acquisition of intangible 
 assets                         (3 275)          –       (9 870)
Acquisition of 
 non-controlling interest      (34 694)          –            –
Purchase consideration 
 paid on business 
 combinations                   (3 500)          –      (56 521)
Net investment in finance 
 leases receivable             (65 163)    (80 945)    (118 973)
Additional costs incurred 
 on equity accounted 
 investment                          –        (115)      (3 678)
                              (122 829)    139 025       19 541 
Cash flows from financing 
 activities
Interest-bearing 
 liabilities raised             50 000         437      350 050
Interest-bearing 
 liabilities repaid               (353)   (171 274)    (655 439)
Derivative financial 
 liability paid                (16 154)          –            –
Shares repurchased             (70 602)          –            –
Treasury shares purchased       (3 756)          –            –
Decrease in short-term loans         –    (103 789)      25 292
Dividends paid                 (33 347)          –            –
                               (74 212)   (274 626)    (280 097)
Increase in net cash, cash 
 equivalents and overdrafts    259 615     (42 222)     206 404 
Net cash acquired from 
 business combinations               –           –       89 769 
Net cash, cash equivalents 
 and overdraft at beginning 
 of period                     222 908     (73 265)     (73 265)
Net cash, cash equivalents 
 and overdraft at end
 of period                     482 523    (115 487)     222 908
CONDENSED ANALYSIS OF GOODWILL
                             Half year   Half year    Full year
                                31 Dec      31 Dec       30 Jun
                                  2016        2015         2016
                             Unaudited   Unaudited      Audited
                                 R’000       R’000        R’000
Opening balance                347 846     108 166      108 166
Business combination 
 acquisitions                        –           –      239 680
Closing balance                347 846     108 166      347 846
Business combination 
 acquisitions
Datacentrix                          –           –      190 465
Solareff                             –           –       45 222
Intdev                               –           –        3 993
                                     –           –      239 680
BUSINESS COMBINATIONS
1)  E-BUSINESS INFRASTRUCTURE SOLUTIONS (PTY) LTD (“EBIS”)
    On 27 October 2016, the Company acquired, through its 
    subsidiary, Axiz (Pty) Ltd, the distribution business of EBIS 
    in the countries comprising the continent of Africa but 
    excluding the Republic of South Africa, of the sale and 
    maintenance of IBM branded computer software and matters 
    incidental thereto as a going concern for a purchase 
    consideration of R3.5 million.
    The transaction was accounted for in terms of IFRS 3 Business 
    Combinations.
    The IBM Software Distribution Agreement and Customer List 
    were classified as intangible assets at the acquisition date 
    and were valued at R3.5 million. Accordingly, goodwill on 
    acquisition was calculated as zero.
BUSINESS COMBINATIONS CONCLUDED IN THE PREVIOUS PERIOD
2)  DATACENTRIX HOLDINGS LTD
    The Company increased its shareholding in Datacentrix 
    Holdings Ltd to 55.2% in the previous financial year. This 
    percentage was further increased to 57.2% in July 2016 due to 
    a share repurchase by Datacentrix.
    Datacentrix is a complete ICT systems integrator that 
    provides solutions and services across the full information 
    value chain to its customers and has been listed on the main 
    board of the JSE since 1998.
3)  SOLAREFF (PTY) LTD
    On 1 February 2016, Pinnacle acquired 51% of the total voting 
    shares in issue of Solareff (Pty) Ltd ("Solareff"). 
    Solareff is a fast growing solar photovoltaic specialist with 
    more than a decade’s experience in renewable energy projects. 
    As one of the top three solar photovoltaic specialist 
    companies in Southern Africa, it is recognised as a market 
    leader in its field.
4)  INTDEV INTERNET TECHNOLOGIES (PTY) LTD
    Pinnacle acquired 60% of the total voting shares in issue of 
    Intdev Internet Technologies (Pty) Ltd ("Intdev"), effective 
    on 1 March 2016. The transaction was entered into to further 
    increase the Group's Services and Solutions division.
    Intdev Internet Technologies is an award-winning South 
    African IT company with a countrywide presence that has been 
    offering complete and customised IT and Internet Solutions 
    since 2003.
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS
Fair value measurements of financial assets and liabilities are 
analysed as follows:
Level 1 – fair value is determined from quoted prices 
(unadjusted) in active markets for identical assets or 
liabilities. 
Level 2 – fair value is determined through the use of valuation 
techniques based on observable inputs, either directly or 
indirectly. 
Level 3 – fair value is determined through the unobservable 
inputs for the asset or liability.
                             Half year   Half year    Full year
                                31 Dec      31 Dec       30 Jun
                                  2016        2015         2016
                             Unaudited   Unaudited      Audited
                     Level       R’000       R’000        R’000
FINANCIAL ASSETS
Trade and other 
 receivables             2   2 246 056   1 457 596    2 491 487
Share purchase
 scheme loans            2           –       2 429            –
Derivative financial
 asset                   2       1 800           –            –
Finance lease 
 receivables             2     651 846     538 505      586 683
Cash and cash 
 equivalents             1     482 523      31 616      241 493
FINANCIAL LIABILITIES
Interest-bearing 
 liabilities             2     403 218     315 551      353 570
Derivative financial 
 liability               2           –      19 914       19 598
Trade and other 
 payables                2   1 700 918   1 281 187    1 817 480
COMMENTARY
INTRODUCTION 
The Group presents its condensed consolidated unaudited interim 
financial results for the six months ended 31 December 2016. 
OVERVIEW
Pinnacle has delivered satisfactory results with all of its 
operating divisions growing despite the difficult market 
conditions.
The acquisition of Datacentrix Holdings Limited (“Datacentrix”), 
and to a lesser extent of Solareff Proprietary Limited 
(“Solareff”), in the second half of the last financial year, has 
contributed positively to the Group in the six months ended 31 
December 2016. The strategy to diversify the Group’s business 
from that of predominantly distribution is bearing fruit with the 
contribution from the Services and Solutions cluster becoming 
more significant. In addition, the focus on delivering profits 
into cash has transformed the gearing of the group which has 
allowed us to recommence our acquisition strategy.
A significant milestone in that strategy was the announcement on 
SENS on 30 January 2017 that Pinnacle had fulfilled all of the 
conditions precedent to acquire the balance of the ordinary share 
capital of Datacentrix. Datacentrix will be accounted for as a 
100% owned subsidiary with effect February 2017.
Pinnacle will continue to look at further acquisitions, both 
local and international, to bolster its offerings in each of its 
clusters as these opportunities present themselves with the focus 
on expanding our Services and Solutions cluster.
FINANCIAL RESULTS 
The Group had a strong first half with revenue growing 47% to 
R6.3 billion with pleasing growth emanating from all operations, 
particularly in our Services and Solutions cluster.
Operating profit margins improved to 5.7%, from 5.3% previously. 
Small losses on foreign exchange were experienced due to the 
volatility of the rand during the period and due to certain 
foreign currency exposures that exist in African countries. In 
addition, amortisation charges in the six months to December 2016 
include amounts processed on intangibles recognised on business 
combinations that were insignificant in the comparable period. 
Taxation was impacted by security transfer tax paid on the 
restructure of one of the subsidiaries in the group amounting to 
R2.9 million, non-resident shareholders tax of R1.5 million paid 
on a dividend received from a foreign subsidiary, and R3.8 
million in an under provision of income tax in one of the 
subsidiaries.
Headline earnings improved by 19% to R178 million and Core 
earnings per share were up 17.2% to 110.2 cents per share (“cps”) 
(H1 2016: 94.1 cps).
The Group continued with its strategy of cash generation and 
working capital reduced by a further R200 million from the 
position at the end of June 2016. Cash flow from operations 
increased to R592 million (H1 2016: R183 million), and this 
resulted in the Group having no short-term debt as at the end of 
December 2016. 
DIVISIONAL PERFORMANCE 
The Distribution division increased revenue by 11% and EBITDA* by 
13%.
–  The division has traded well in a difficult market. The 
   strategy, implemented in prior periods, to offer more 
   enterprise and infrastructural products to our customers has 
   served the division well.
–  Continued emphasis was placed on working capital management 
   and logistic efficiency in order to yield acceptable returns 
   and the division has responded magnificently to achieve a 
   further reduction in its working capital utilisation. 
The Services and Solutions division, incorporating Datacentrix 
and Solareff, has had a pleasing six months with revenue of R1.8 
billion. New contracts have been secured in a highly competitive 
environment that place the division well for growth in the 
ensuing periods. The investment in working capital has been 
reduced but the focus remains to reduce this further. 
Centrafin has had a satisfactory six months. Revenue increased by 
20% and the division continued to contribute positively to the 
growth of the Group. The book continues to grow and is now at 
R660 million from R564 million a year ago. The margins have been 
maintained and customer defaults continue to be well managed.
* Earnings before interest, taxation, depreciation and 
  amortisation.
INVESTMENT ACTIVITIES AND FINANCIAL POSITION
Cash generated by operating activities in the six months to 
December 2016 came in at a healthy R592 million. 
The only other inflow of funds of significance was the increase 
in the securitisation funding in Centrafin of R50 million.
The main cash outflows for the six months comprised:
–  Net interest paid of R54 million;
–  Taxation paid of R81 million;
–  Net fixed assets acquired of R16 million;
–  Further investment of R65 million into the Finance receivable 
   book; 
–  The repurchase of shares in Datacentrix by Datacentrix of R35 
   million;
–  The repurchase of shares of R71 million; and
–  Dividends paid of R33 million.
RELATED PARTY TRANSACTIONS
There have not been any reportable related party transactions in 
the period except for those that are mentioned elsewhere in this 
report.
SUBSEQUENT EVENTS
FURTHER ACQUISITION OF DATACENTRIX
On 30 January 2017, the Company and Datacentrix announced on SENS 
that all of the conditions precedent for the acquisition of 100% 
of the balance of the issued share capital of Datacentrix not 
already owned by Pinnacle had been fulfilled. 
CHANGE OF NAME
As communicated and subsequently approved by the Shareholders at 
the Annual General Meeting, the name of Pinnacle Holdings Limited 
will change to Alviva Holdings Limited. 
The proposed new name has been approved by the Companies and 
Intellectual Property Commission (“CIPC”). The abbreviated name 
of the Company for the purposes of the JSE trading system will be 
“Alviva”, the JSE alpha code will be “AVV” and the new ISIN will 
be ZAE000227484. Listing of and trading in new shares on the JSE 
under the new JSE code and ISIN will be from commencement of 
business on 8 March 2017. For a period of not less than one year, 
the Company will reflect the former name “Pinnacle Holdings 
Limited” in brackets beneath the new name of “Alviva Holdings 
Limited” on all documents of title.
No other events material to the understanding of the report 
occurred in the period between the period-end date and the 
publication date of this report.
DIVIDENDS
In line with previous years, no interim dividend is proposed for 
the period under review.
PROSPECTS AND STRATEGIC INITIATIVES
The outlook for the year to 30 June 2017 is positive with 
earnings expected to be above those of June 2016 due to on-going 
improvements in all business segments.
–  The Distribution division is well managed and well positioned 
   to take advantage of the opportunities in both the local 
   market and those beyond our borders.
–  Centrafin will continue to maintain a steady growth with the 
   backing of its securitisation structure and funding.
–  The Services and Solutions segment should continue their 
   growth trajectory and we are excited about their prospects.
The ongoing actions and strategy are to continue with further 
improvements in working capital, to grow organically, to 
diversify the overall business, and to invest into new 
technologies. The Services and Solutions businesses will be 
targeted for growth, both organically and by way of strategic 
acquisitions.
STATEMENT OF COMPLIANCE, BASIS OF PREPARATION AND ACCOUNTING 
POLICIES
The condensed consolidated unaudited interim financial results 
for the six months ended 31 December 2016 have been prepared in 
accordance with the Group’s accounting policies under the 
supervision of the Chief Financial Officer, RD Lyon CA, and 
complies with IAS 34: Interim Financial Reporting, the framework 
concepts, and the measurement and recognition requirements of 
International Financial Reporting Standards (“IFRS”), the SAICA 
Reporting Guides as issued by the Accounting Practices Committee 
and Financial Reporting Pronouncements as issued by the Financial 
Reporting Standards Council, the Listings Requirements of the JSE 
Limited and the requirements of the Companies Act of South Africa 
(Act 71 of 2008), as amended. 
The condensed consolidated unaudited interim financial results of 
the Group are prepared on a historical basis except for certain 
financial instruments, which are stated at fair value as 
applicable.
The condensed consolidated unaudited interim financial results 
have been prepared using accounting policies that comply with 
IFRS and includes reasonable judgements and assessments. These 
accounting policies are consistent with those applied in respect 
of the audited consolidated annual financial statements for the 
year ended 30 June 2016. All new interpretations and standards, 
which became effective during the 6-month period under review, 
have been assessed and adopted with no material impact.
Neither the condensed consolidated unaudited interim financial 
results for the six months ended 31 December 2016, nor this set 
of summarised financial information and disclosure, have been 
reviewed or audited by the Group's auditors, Sizwe Ntsaluba 
Gobodo Inc. The directors take full responsibility for the 
preparation of this summarised report. Any reference to future 
financial performance included in this announcement has not been 
reviewed or reported on by the Group's auditors.
Core earnings per share is a non-IFRS measure and is based on 
headline earnings per share (“HEPS”) adjusted to exclude 
amortisation charges of intangibles recognised on business 
combinations and one-off expenses related to acquisitions.
For and on behalf of the Board
AJ Fourie                                P Spies 
Chairman                                 Chief Executive Officer
Midrand
2 March 2017
PINNACLE HOLDINGS LIMITED
Directors:  
AJ Fourie * (Chairman), A Tugendhaft * (Deputy Chairman), P Spies 
(Chief Executive Officer),  RD Lyon (Chief Financial Officer), 
SH Chaba*^, N Medupe *^, B Sibiya #  
* Non-executive
^ Independent non-executive
# Lead independent
Registered Office: The Summit, 269, 16th Road, Randjespark, 
Midrand, 1685
Preparer of results: RD Lyon CA
Company Secretary: SL Grobler CA (SA)
Transfer Secretaries: 
Computershare Investor Services (Pty) Ltd, Rosebank Towers, 15 
Biermann Avenue, Rosebank, 2196
Auditors: 
SizweNtsalubaGobodo Inc., Registered Auditors, Summit Place 
Office Park, Building 4, Garsfontein Road 221, Menlyn, 0081
Sponsor: 
Deloitte & Touche Sponsor Services (Pty) Ltd, Building 8, 
Deloitte Place, The Woodlands, 20 Woodlands Drive, Woodmead, 2196


Date: 02/03/2017 03:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
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