RE: Pinnacle Telecoms7 Dec 2013 21:41
[PINN]
Trading Statement and Management Change
The Board has now reviewed the management accounts for the year ended 30 September 2013 and today issues the following trading update. As signalled in the interim announcement on 06 June 2013, revenue for the year ended 30 September 2013 is lower than in the previous year, at approximately £10.1m (2012 £12.7m). This result, whilst disappointing, relates in large part to poor performance from the previous acquisition of RMS IT Security and the lack of any major UK high-profile events in the period (compared to the Queen's Diamond Jubilee celebrations and the London Olympic Games contracts, which were delivered in the year ended 30 September 2012). In consequence, both EBITDA and Pre-tax loss when finalised, will show a significant deterioration on the figures for the previous year (2012 adjusted EBITDA £284,554; 2012 Loss before tax (£1,115,558)).
It should be noted however, that following the announcement of the Interim Results to 30 March 2013, the Board embarked on a strategic review of the Group and has taken robust actions to reduce on-going costs in recent months. As a result, the Group is now trading close to EBITDA breakeven on a monthly basis.
Commenting on the trading update and announcing his intention to seek a successor, Alan J Bonner, the Pinnacle Chief Executive, said :-
"I am pleased to report that the Group is now trading close to EBITDA breakeven on a monthly basis. However, I have decided that after 15 years since I started Pinnacle, the time is now right to seek my successor. I am hopeful that we can soon appoint a new Chief Executive who will help us achieve our objectives and I look forward to ensuring a smooth transition in the best interests of our customers, staff and all other stakeholders"
The Company expects to make a Preliminary announcement for its full year results to 30 September 2013, in February 2014. Any further announcements regarding the appointment of Mr Bonner's successor as Chief Executive, will be made in due course.
This company looks like it will now be in control of the corporate advisers with a fresh round of fundraising in the pipeline in order to shore up the leaky balance sheet, profit and loss, and raise sufficient funding either to seek acquisitions, contracts,working capital and or perhaps defend itself from a takeover suitor and also to recover its reputation but this is all my opinion of course as that is the main purpose of a listed company, access to the equity market.
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