RE: Pinnacle Telecoms20 Feb 2013 07:12
[PINN]
Preliminary results for the year ended 30 September 2012.
HIGHLIGHTS
Financial
· 49% increase in turnover to £12,710,446 (2011: £8,522,079).
o 79% of turnover now relates to recurring and contracted revenues.
· 61% increase in Gross Profit to £3,960,322 (2011: £2,464,529).
o Gross Profit increased to 31.1% (2011: 28.9%).
· £515,437 of adjusted EBITDA (1).
· 75% increase in total assets to £6,920,652(2011: £3,958,300).
· Placing of £365,000 completed during the year (2011: Nil).
· Invested £766,846 of cash (2) in one-off costs associated with acquisitions.
· Post year-end, successful Placings of £2.95m.
Operational
· Fifth consecutive year of growth.
· Acquired RMS Managed IT Security Limited ("RMS") and Online Computer Developments Limited ("OCD").
· Completion of first two phases of strategic growth plan, building a strong portfolio of IT managed services.
· Focus now on cross-sales of the Group's services into existing extensive customer base.
Alan J Bonner, the Group CEO commented:
"As we continue to invest to reposition the business for the future, the Group has made good progress and performance in the current economic climate. Our commitment to investment in people will continue and we are well positioned to deliver value to shareholders through the achievement of our stated strategy. After carefully considering Pinnacle's growth and strategic objectives, we believe that a share consolidation could prove beneficial to the company and its shareholders, as a result, we will be seeking approval for a 1-for-100 share consolidation at the forthcoming AGM on 26 March 2013.
"There are good reasons to be optimistic; the business has invested £766,846 of cash this year in one-off acquisition costs, produced record sales of £12.7m and adjusted EBITDA including profit from acquisitions of £515,437, despite one of the most challenging trading environments. We've also grown our acquired revenues by 51% and grown our acquired gross profit by 48%.We enter the new financial year in a strong position, having secured £2.95m of cash following new share issues post year-end. Our financial strength will enable us to continue to invest and reposition the business, and despite the current economic conditions, we intend to make further investment in our sales teams to take advantage of the opportunities we have to increase our market share. Whilst the results of our cross-selling strategy may take some time to deliver, we are confident that the actions we have taken to date and the strategy we are pursuing will ensure the Group continues to prosper."