PNC 201502180027A
Trading statement

Pinnacle Holdings Limited
(Previously Pinnacle Technology Holdings Limited)
Registration number 1986/000334/06
Share Code: PNC
ISIN: ZAE000184149
(“Pinnacle” or “the Group” or “the Company”)

TRADING STATEMENT

The trading statement is published in compliance with paragraph 3.4(b) of the JSE
Listings Requirements.

Revenue, Earnings per Share (“EPS”) and Headline Earnings per Share (“HEPS”)

Shareholders are advised that the Company is reasonably certain that its interim
results for the 6 months ended 31 December 2014 will reflect the following:

                           6 months to          6 months to           6 months to
                        31 December 2013     31 December 2014      31 December 2014
                              Actual          Expected change       Expected Values
                                                percentage
  Revenue                   R3,161 million        +14% to +15%        R3,600 to R3,640
                                                                                million
  Headline earnings           R151 million          -16% to -21%          R120 to R127
                                                                                million
  EPS                          102.6 cents          -22% to -27%         75 to 80 cents
  HEPS                          95.4 cents          -14% to -19%         77 to 82 cents

   A. Revenue for the six months ended 31 December 2014 grew in a satisfactory
      manner with particularly pleasing growth into markets outside South Africa
      being recorded.
   B. This revenue growth was achieved despite a month long Numsa strike that
      hampered trading at the Pinnacle Africa facilities in Gauteng during July 2014.
   C. 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.
   D. Cost management was acceptable, with increased efficiencies resulting in
      operating expenses, as a percentage of revenue, decreasing by approximately
      0.5% when measured against the prior period. This is after adjusting for the
      once-off profit on sale of assets of R10.5 million and the Reclassification
      adjustment of R4.3 million, which was recorded in the prior period. The EPS
      decline is higher than the HEPS decline due to these effects.
   E. The Board is currently considering various options to mitigate the Group’s high
      level of gearing and hopes to inform the market in the near term of its
      intentions.

The above information has not been reviewed or reported on by the Company's
auditors. The Company's unaudited interim financial results for the six months ended
31 December 2014 are expected to be published on SENS on or about 9 March 2015.

Midrand
18 February 2015

Sponsor: Deloitte & Touche Sponsor Services (Pty) Ltd

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