Pinnacle Telecom Group plc PRELIMINARY RESULTS

Pinnacle Telecom Group plc PRELIMINARY RESULTS

Pinnacle Telecom Group plc the AIM listed provider of integrated telecommunications solutions to the business market, today announces its preliminary results for the year ended 30 September 2011.

HIGHLIGHTS
 

Financial benchmarks

  • 110% increase in operating profit (2) to £165,299 (2010: £78,647).
  • 67% increase in positive EBITDA (1) to £249,880 (2010: £149,379).
  • 18% increase in gross profit to £2,464,529 (2010: £2,089,457) a rise of £375,072.
  • 60% decrease in the loss for the year (3), falling to £98,305 (2010: £246,072).
  • 29% increase in turnover of £1,913,546 to £8,522,079 (2010: £6,608,533).
  • 740% combined turnover growth since 2007.
  • 84% of turnover now relates to recurring and contracted revenues (2010: 81%).

 

Acquisitions

  • Acquired the Business and Assets of an IP CCTV business, delivering combined resilient and "always on" 3G and IP connectivity, for high-profile CCTV monitoring to companies such as Sotheby's, Unipart and Hilton Hotels.
  • Acquired the Business and Assets of MacLellan IT Limited, a well established profitable IT company for 186,046,491 shares at a premium of 58% per share, equivalent to £669,767. MacLellan are delivering increased IT consultancy and support revenues in Scotland.

Balance sheet highlights

  • Positive cash at the year-end of £452,431 (2010: £697,189).
  • Maiden positive operating cash flows from operating activities of £25,752 compared to negative £154,377 in 2010.
  • Added £647,791 of intangible assets, following on from the addition of £205,567 in 2010, which helps strengthen the group's IT asset base.
  • 52% increase in group net assets to £1,813,140 (2010: £1,319,743), an increase of £493,397.

 

BBC high-profile contracts

We continue to supply the BBC with voice and data services for high-profile and prestigious events, which included the Royal Wedding during 2011. We also have confirmed orders in place for London Olympics 2012 as we support the BBC as the host broadcaster to the world's media.

Strategy

Our strategy of cross-selling the five elements of our converged managed services offering is now delivering positive results. The objective is to cross-sell all the group's services into our existing customer base, which strengthens our customers reliance on the company, increases our profit per customer and dramatically decreases the likelihood of our customers switching to a competitor.

Alan J Bonner, the Group CEO commented: "In summary, 2011 has been another very successful year. We have progressed with our strategy to build a converged managed services business of scale, by cross-selling our customers the five elements of our converged managed services proposition and we are now starting to see positive results coming through. In the year ended 30 September 2011, we increased our operating profit by 110%, EBITDA by 67%, gross profit by 18% and turnover by 29%. We have now delivered 740% growth in turnover since 2007 and at the same time enhanced shareholder value.

In July we acquired the Business and Assets of an IP CCTV business delivering combined resilient and "always on" IP and 3G connectivity, for high-profile IP CCTV monitoring. We now supply companies such as Sotheby's, Unipart and Hilton Hotels. In August we acquired the Business and Assets of MacLellan IT Limited, a well established profitable IT company for 186,046,491 shares at a premium of 58% per share, equivalent to £669,767. MacLellan are delivering increased IT consultancy and support revenues in Scotland.

We continue to supply the BBC with voice and data services for high-profile and prestigious events, delivering solutions to over 170 media events in 2011, which included the Royal Wedding. We also have confirmed orders in place for the London 2012 Olympic and Paralympic Games, supporting the BBC as the host broadcaster to the world's media.

As a small company surrounded by industry giants, we continually punch above our weight. We can be extremely proud of the solutions that have been deployed and the service we deliver to our customers. Importantly however, whilst the period to 30th September 2011 has been a very successful year, we have made significant progress post year-end. Our strategy is working and I look forward to further updating you of our progress as the year unfolds."

Notes: 1. EBITDA is defined as Earnings before interest, taxation, depreciation, amortisation of intangibles, exceptional acquisition costs, share of results of associates and the embedded fair value adjustment in the convertible loan.
2. Operating profit is measured before amortisation of intangibles, exceptional acquisition costs, share of results of associates and the embedded fair value adjustment in the convertible loan.
3.
Loss for the year is measured after all costs, including the costs of discontinued operations relating to previous years.

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