We know about the issues being addressed, , but going forward, an extract from the article:-
'Pinnacle said the Ancar-B acquisition is for a total £3.5 million consideration, comprising £2.75 million in cash and £0.75 million in new shares priced at the placing price.
Ancar-B notes in most recent abbreviated accounts filed with Companies House covering the 2014 year to July, it had net assets of £1.42 million.
Pinnacle said Ancar-B generated £2.2 million in revenue in the 2015 year to July.
The Weston acquisition is for a £1.5 million total consideration, “to be satisfied in new Ordinary Shares at the Placing Price”.
Weston Communications noted in most recent abbreviated accounts covering the 2015 year to March 31, total assets less current liabilities totalled £239,716, up from £110,311 the prior year.
Pinnacle said Weston, which provides telecoms and IT support services to SMEs, councils and universities, generated revenues of £2.8 million in the 2015 year to March.
Pinnacle said Ancar-B generated earnings before interest, tax and other costs of £0.58 million (unaudited) in the most recent financial year and Weston generated earnings of £0.22 million (unaudited).
Pinnacle executive chairman, Gavin Lyons, said: “We believe that strategically there is a market opportunity for Pinnacle to become the leading provider of 'IT as a service' to the UK SME market, despite a number of operating challenges to address, by embarking on a buy and build strategy and focusing on higher margin services.
“The acquisitions of Ancar-B and Weston are the first steps in consolidating a highly fragmented market and I look forward to ensuring the organisation is focused on creating both customer and shareholder value.”
Would never suggest you are making any predictions or forecasts. But we are here because we are as sure as we can be that this will go up. Just not in a straight line. This is as accurate as we can ever be really!
I am pleased we see this share in a similar way. I always find reinforcement in your well balanced posts. I expect it to establish itself at this level this week. Of course there is a chance it could jump a couple of pence straight away as people fear they are missing the boat. But consolidation will happen here in the end and we will move on. Lovely.
At least all the bad news is out there now and this remains a work in progress. They plan to address the drag of some legacy issues, whilst at the same time embarking on a buy and build. They have enough working capital for 12 months, and during that time onw would expect the management and MXCP to make significant progress, Further funding will obviously be required as they make acquisitions. A longer term proposition, undoubtedly, but I'm optimistic of success.
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