These results reflect the work- in-progress status of the Pinnacle Technology turnaround, as the various measures put in place to return the business to profitable revenue growth, reduce costs and sharpen the focus of the business take effect. The Board continues to be focussed on positioning the company to become EBITDA positive and recognises that this will take some time.
However, given the progress that has been made, as detailed below and as outlined in the circular to shareholders dated 28th April 2015, the Board is now of the view that the time is right to consider reviewing acquisition opportunities that will take advantage of the underlying capabilities of the Group, as well as the highly fragmented and regionalised market in which the Group operates
CEO has clearly stated that acquisitions are being evaluated as of June this year, they were being evaluated before June but this statement is actually from the interims so they will be much further down the road as of now.
In March this year the business signed an exciting O2 Mobile Digital Services agreement.
This supports our strategy, of harnessing our strengths in IT services and also results in favourable mobile contractual terms. Whilst this agreement is still being implemented, it is clear from the market as a whole that usage of mobile devices for data connectivity is greatly increasing, and there is a close relationship between the IT applications consumed by SMEs and the way in which they are accessed, via broadband and mobile devices.
Providing a one-stop-shop for both clearly fits with Pinnacle's strategy of providing SME clients with all their IT and communications needs. An additional benefit of the arrangement with O2 is being able to access their products approved for use in the public sector on a reseller basis, where HM Government accreditation is required.
Previously it was unlikely Pinnacle would have been able to retain or bid for such work.
----- Previously it was unlikely Pinnacle would have been able to retain or bid for such work.
Now they can because they are in rude health having appointed MXCP and now seeking acquisitions which will see further contract wins with multi billion £ companies such as 02
This might well appear quiet in terms of investor activity and posting here but it's certainly not the case within the company. The CEO stated that they are already seeing huge improvements and returning to profitability. They have had MXCP working hard behind the scenes to streamline the business and making their anticipated acquisition.
Don't forget that MXCP have a lot of money to invest and having already taken their stake here they could well be about to make acquisitions based on loans which will be great for pinn and great for mxcp.
One step at a time and as pointed out by chomsky
Interims out .........Tick. New Director........Tick. New Web site ......Tick. New ???...............Currently working on new acquisitions.
Anyday for the news, so take them out the drawer and wipe the dust of them, these are for the here and now.
You are looking at a buy and build company with all the growth in front of it.
Given the progress that has been made and as outlined in the circular to shareholders dated 28(th) April 2015,
The Board is now of the view that the time is right to consider reviewing acquisition opportunities that will take advantage of the underlying capabilities of the Group."
Quite a telling statement that, this is clearly a buy and build company now. Just like RCN, ACM CTP.
MXCP stated that they would get involved in buy and builds and this is clearly one in the making.
MXCP have thier man on the board and the company has stated that acquisitions is no on their radar. This is a great chance during these quiet summer months to get a holding in time for a return to good solid volume and good news days.
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