Pinnacle Technology Group plc, .... is pleased to announce that it has acquired the entire issued share capital of adept4 Limited ("adept4"), a provider of cloud based IT services and solutions headquartered in Warrington.
· In the year to 31 December 2015 adept4 generated revenue of £5.0 million and EBITDA of £0.75 million · 67% recurring revenue, expected to increase due to a growing long term support contract base and organic growth
· Strong free cash flow generation in excess of 90% of EBITDA
· Post completion, Pinnacle will have cash at bank of £4.3 million
· Following recent disposals of legacy Pinnacle trade and assets, the Company proposes changing its name to adept4 plc
With each move, this new Board has replaced old with new and loss-making with profitable.
And, Pinn now looks to be profitable, so with £4.3m left in the bank after this acquisition, I expect there's more to come, which is excellent. GLA
...long live adept4! So with last years massive and premature hype well and truly behind us,let's look forward to a completely different - and hopefully successful - company from the one before. I bought back in this morning after selling approx 6 month ago. Hope I don't regret it.
So - under A Bonner, the plan appeared to be to acquire apparently poorly performing tech / comms businesses, strip out the duplicated bits (HR, Finance etc) and integrate them into PINN, do some cross selling etc = make them profitable.
This seemed to work ok with some businesses, and they made some money for PINN.
For some businesses the "Bonner Plan" didn't actually make them profitable. (RMS would be an example I think).
With changes at the top, it wasn't surprising to see a change of strategy, and disposing of RMS and other services that were duplicated elsewhere in the business / were only in place for legacy reasons all seemed to make sense.
The recent, not yet integrated, acquisitions of AncarB and Westons could well follow the "Bonner Plan" - maybe successful, maybe not.
But with the disposal of everything else to Chess inc 27 staff means that with the exception of senior management, there's almost nothing left of what Bonner built.
PINN now appears to consist of 2 recently bought companies and senior management (directors excluded) who've been working in Telecoms / Connectivity sector - and not in the "IT as a Service" sector.
It's a bit like the "Triggers Broom" thing - it's the same broom - but it's had "17 new heads and 14 new handles".
What do I think this means? That the past performance of PINN will have no relation to future performance.
So the question we all have to ask is, do we think that merged AncarB & Westons are worth more or less than 6.5p?
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