Pinnacle has been going through a turnaround strategy for a while but each time it issues a fresh set of financial results there are more signs that the strategy is paying off.
The managed services specialist provided an insight into its half yearly numbers for the six months ended 31 March with losses trimmed by half compared to the same period in 2014.
The channel player saw revenues dip year-on-year from £4.26m to £3.99m and gross profits were not far off the same mark as 2014 but it was in its losses that the most movement was made with the figure tumbling by 52% from £1.10m to £0.52m.
The ambition to get the firm back to profitable growth is moving closer and it has been focusing around a more targeted business and scrutinising its operations to make savings wherever possible.
“Over the last year we have seen progress in returning the business to health with a much better defined focus, costs reduced and transformational projects underway. We are proud of our recent customer successes and product developments to support the business. We said it would take time to turn the business around, as seen by these results, but we remain confident that the leaner, more focussed organisation will return to profitable revenue growth,” said Nicholas Scallan, the Pinnacle Technology Group CEO.
He made reference to the recent backing that the firm received from MXC Capital, which picked up shares to the value of £0.86m and a 10% share of the expanded equity back in April.
Even though the turnaround strategy has not yet reached its conclusion the managed services player is already considering acquisitions as a way of bolstering its operations.
James Dodd, Pinnacle chairman, revealed its intentions to widen its operations in his update to shareholders: “The Board continues to be focussed on positioning the company to become EBITDA positive and recognises that this will take some time.”
“However, given the progress that has been made, as detailed below and as outlined in the circular to shareholders dated 28 April 2015, the Board is now of the view that the time is right to consider reviewing acquisition opportunities that will take advantage of the underlying capabilities of the Group, as well as the highly fragmented and regionalised market in which the Group operates.” he added.
Dodd said that MXC Capital would be providing advice and guidance as it looked to develop its acquisition strategy and the board was feeling increasingly confident about the future.
“As we continue this journey, we would like to recognise the support and contribution of all of our customers, suppliers, shareholders and particularly our staff in helping us achieve positive change,” he added.