Pinnacle Holdings Limited provided earnings guidance for the year ended December 31, 2014. For the period, the company expects revenue of ZAR 3,600 million to ZAR 3,640 million, headline earnings of ZAR 120 million to ZAR 127 million, EPS of 75 cents to 80 cents and HEPS of 77 cents to 82 cents. Revenue for the six months ended December 31, 2014 grew in a satisfactory manner with particularly pleasing growth into markets outside South Africa being recorded.

This revenue growth was achieved despite a month long Numsa strike that hampered trading at the Pinnacle Africa facilities in Gauteng during July 2014. As previously highlighted to the market, gross margins have continued to be under pressure and, as a percentage of revenue, will be approximately 2.5% lower than the comparative period. This was brought about by competitive pressures and product mix as the group continues its progress into large technology projects which typically carry lower margins.

Management has addressed the declining gross margins by focusing specifically on the procurement process and all aspects of margins are a top priority for the group.