Managed services specialist Pinnacle Technology Group has brought on board a fresh investor as it continues to navigate a turnaround strategy and seek out funds to support its growth amibitions.
The firm recently reported its yearly results to September 2014, which included a dip in revenues and a post-tax loss of £1.8m, but it showed an improvement on the previous twelve months and at the time the chairman stated that the firm was heading in the right direction.
“Whilst the Board has recognised from the outset that turning around Pinnacle Technology will take time, as demonstrated by these results, the Board continues to work to stabilise revenues in the business and to position the company to becoming EBITDA positive," said chairman James Dodds back in February.
“Although further time and efforts are still required to restructure the Group into the appropriate form for its operations, the opportunities available to Pinnacle Technology and the early signs of progress underpin the Board’s confidence in the future prospects of the Company," he added.
The latest move has seen the firm release shares on AIM, which have raised £0.86m and been picked up by MXC Capital, which now holds 10% of the expanded equity and has gained a seat on the managed service providers board.
The idea of bringing in MXC Capital is not only to gain access to more funds to support the turnaround strategy but the firm will also be providing coporate finance advisory services to Pinnacle.
"We have known Pinnacle for some time. We see an opportunity to work with management to drive the Company's strategy, identify acquisition opportunities and accelerate its growth," said Marc Young, CEO of MXC Capital.
In response, Nicholas Scallan, CEO of Pinnacle Technology Group, said that the relationship with its new investor would be a positive one and put the business in a better position.
"I am confident that the involvement of MXC Capital, with its powerful network of contacts in our industry, will generate a number of opportunities to grow our business," he said.