Pierre Spies has been named as deputy CEO at technology group Pinnacle Holdings and is set to take the reins when the current CEO, Arnold Fourie, steps down.
After a torrid year for the group, which included an investigation by the police into alleged bribery by executive director Takalani Tshivhase (the charges were later dropped), it has now said there is a need for a proper succession plan.
Spies, who until now has been CEO of Pinnacle subsidiary AxizWorkgroup, will work closely with Fourie with a view to assuming the CEO role on the latter’s “eventual retirement”.
“Arnold is determined to see Pinnacle through to a renewed position of strength and as such has not put a firm date on this handover,” the group told shareholders on Wednesday.
Spies is a former CEO of Tarsus, the principal subsidiary of MB Technologies, the large, unlisted technology distribution company.
Pinnacle will now begin a selection process to find a replacement for Spies at AxizWorkgroup.
At the same time, Chamber of Mines CEO Bheki Sibiya has been appointed as lead independent director on Pinnacle’s board with immediate effect. Sibiya was the founding CEO of Business Unity South Africa and is a past president of the Black Management Forum.
Ashley Tugendhaft has been named as nonexecutive chairman, also with immediate effect.
Pinnacle will now also have only two executive directors on its board, its CEO and chief financial officer. Tshivhase and Robert Nkuna have stepped down as directors as a result.
The management changes were announced alongside the group’s interim results for the six months ended 31 December 2014. Revenue rose by 14% to R3,6bn. However, headline earnings per share fell by 16% to 80,4c.
Gross profit decreased by 2,3% on margins of 14,4% (2013: 16,9%). Operating expenses increased by 12,6% (7% excluding once-off items) to leave operating income down by 18,7%. No dividend was declared for the interim period.
The group said it is confident of an improvement in its earnings in the second half.
“Following the withdrawal by the state of the bribery allegations [against Tshivashe] at the end of August 2014, management has returned its focus onto the business and all the opportunities that exist in each cluster,” it said.
To improve Pinnacle’s gearing (its debt to equity ratio), the board has approved the disposal of the group’s property portfolio, including land in Centurion that was earmarked for its future premises. It will also wind down its loss-making management print services business and suspend annual dividend payments until its gearing reaches 50% of shareholders’ funds. — © 2015 NewsCentral Media
