Diversified information and communications technology (ICT) group Pinnacle Holdings has diversified significantly beyond its traditional ICT sector position and declared a 20c a share dividend for the 2016 financial year.

The company described the year ended June 30 as “eventful”, with market pressure and large acquisitions having contributed to slightly lower margins in its core distribution division.

It reduced its debt-to-equity ratio from 50% to 19%, while cash generation improved by 47% to R748-million in the year under review. Revenue grew by 37% to R10.9-billion.

In May, Pinnacle acquired solar photovoltaic company Solaref for an initial R54.8-million. The final purchase price may increase by a maximum of R145.2-million based on Solaref’s 2017 financial performance.

Solaref had contributed R104.8-million to the group's revenue since the acquisition. The Pinnacle board considers renewable energy a strategic sector to enter.

Meanwhile, its financial services subsidiary Centrafin grew its revenue by 23.9% and earnings before interest, taxes, depreciation and amortisation by 17.8%.

Pinnacle made significant investments to improve its ICT infrastructure, storage and big data analytics capabilities. It also acquired Internet and cloud service provider IntDev Internet Technologies for R1.7-million, which contributed R9.7-million to revenue in the year under review.

Pinnacle Holdings, in January, increased its share in Datacentrix to 55.2% for R192-million and the acquisition improved its full-year financial results, contributing R102.8-million to profit before tax, it said.

The growth in its new services replaced the loss of revenue from its computing products business.

Pinnacle will focus on further diversifying its products and capabilities beyond the ICT sector and expanding beyond South Africa for future growth.

The group also remains alive to acquisitions owing its significantly improved financial position.

Pinnacle Holdings, led by CEO Pierre Spies, plans to change its name to distinguish it from subsidiaries. Details will be announced at the company’s annual general meeting later this month.