Scottish IT services firm Pinnacle Technology yesterday revealed a new cost-cutting tie-up with global hosting group Easynet.
The company, which specialises in telecoms services for large events and has worked on the Olympics, the Queen’s diamond jubilee, T in the Park, the Pope’s visit and the Chelsea Flower Show, said the non-exclusive relationship would help it “transform and enhance” an ageing network.
Pinnacle also said the move would enable the IT managed services and solutions group to broaden its appeal to would-be customers, while delivering savings from the spring.
The company said in a statement: “Drawing on the strength, size and capacity of Easynet’s carrier integration network and a resource base of world-class engineering expertise, Pinnacle will now be able to tailor enhanced, secure connectivity solutions for any size of customer in multiple market segments.
“Pinnacle’s operations and engineering teams will work closely together to consolidate business processes as part of phased transformation and migration of the organisation’s legacy network.
“Pinnacle’s customers will benefit from a ‘one stop shop’ approach to enhanced, high performance connectivity access solutions with better speeds, choice and enhanced customer service.
“The arrangement is primarily a cost reduction activity; however there will be additional up-sell opportunities available in certain geographies as a result of the arrangement.”
In February, Pinnacle, which was then based in Brightons, Stirlingshire, but has since moved its head office to Northampton, revealed how pre-tax losses more than doubled to £2.4m during the year to September 2013 following a 20% decline in revenues.
At the time, chairman James Dodd said the period had proven “a very difficult year” with the company tackling a high cost base, stretched balance sheet and significant yet uncertain liabilities.
He said Pinnacle’s woes reflected “in microcosm the changes sweeping the larger telecommunications and IT industries” as traditional phone and broadband markets mature and new technology comes into play.
Nicholas Scallan was installed as chief executive in March replacing Alan Bonner.
But interim pre-tax losses reached £1.19m during the six months to the end of March, with Dr Dodd saying returns reflected the “work-in-progress of a difficult and protracted turnaround for Pinnacle” and had been impacted by the “wilful misconduct” by “various formerly closely associated parties.”
Easynet was acquired by network and cloud computing specialist MDNX, which supplies infrastructure to major UK enterprise, local government and channel partners, last year.