Listed distributor Pinnacle Technology Holdings` half-year results were boosted by contributions from its African venture and AxizWorkgroup`s hardware units.

The company yesterday reported its interim results for the six months to December and said turnover gained 32%, to R2.73 billion, while net profit moved from R88.7 million to R130 million. However, Pinnacle saw software sales slump 11%, as customers delayed upgrading.

Pinnacle, which bought Axiz in 2010 for R150 million, to gain R2 billion in annual revenue, said it would wrap up integrating Axiz and Workgroup by the end of the current financial year, which will aid turnover and profit growth.

Synergies from the acquisition and an increase in the overall turnover mix of higher margin products led to a 41% increase in gross profit, it said.

Pinnacle expects software sales in AxizWorkgroup to return to normal in the “coming months”, because of the addition of nine software agencies to its basket of offerings.

The listed company said Pinnacle Africa, which used to be Pinnacle Micro, is continuing with its growth plan in Africa. Its Botswana operation showed 100% year-on-year growth and it aims to duplicate the unit in Namibia.

“Projects to open offices in two other African countries are almost complete, which will allow the group to participate in the exciting growth potential on the African continent.”

Pinnacle Africa, which has 660 employees, operates in almost the entire Southern African Development Community region.

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