News Column

New chief for Pinnacle fails to stop share slide

February 19, 2014

Perry Gourley

SHARES in Pinnacle Technology fell sharply yesterday after it announced widening losses.After falling 21 per cent in early trade they closed down 9 per cent, despite the Stirlingshire-based company naming former Virgin Media boss Nicholas Scallan as chief executive two months after founder Alan Bonner said he would be standing down.Scallan, previously director of customer solutions at Virgin Media Business, will take charge of the Aim-quoted firm on 3 March. Before joining Virgin, he was responsible for broadband, data and internet-related programmes at Energis, and was networks director of Enertel in the Netherlands.James Dodd, chairman of Pinnacle, said: "With a refreshed board and senior management, together with a supportive shareholder base, we are very optimistic that we now have all the elements in place to grow the company into one of the UK's leading players."Dodd described the year to September 2013 as "a very difficult one" for the company, which had left it with a high cost base and a "severely stretched balance sheet". Revenues fell by 20.2 per cent to GBP10.1 million and pre-tax losses increased to GBP2.4m from GBP1.1m.He said a GBP2.95m fund-raising had since brought financial stability, with year-end gross cash balances totalling GBP587,651 and a less-stressed balance sheet."The board notes the recent reports of improving business confidence," said Dodd.Shares closed down 1p at 9.75p.


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Source: Scotsman, The (Scotland)


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