After 15 years at the helm Pinnacle Technology's founder and Chief Executive stepped down in December 2013 following a sharp dip in revenues, from £12.7 million in 2012 to £10.1 million. His successor, Nicholas Scallan, took over the reins in March and quickly became a visible force behind a no-nonsense business turnaround game plan.
Scallan has masterminded an all-embracing recovery plan that marks the beginning of Pinnacle's post-decline era and return to growth. "Focusing the business and paring back unnecessary expenditure is at the centre of our strategy," he commented. "To maximise growth and streamline operations we continue to simplify the structure, sharpen our focus and put an improved customer experience at the heart of what we do."
Scallan's 'business fitness' plan has positioned the Group nicely for its next development phase. This achievement came faster than observers were perhaps expecting, probably because strong foundations were already in place. "Since joining Pinnacle I have been greatly encouraged by our impressive customer base, passionate employees and exciting product capabilities," said Scallan. "We have been reviewing the company with three key aims in mind - accelerating a return to profitable revenue growth, concentrating on core business and continuing to reduce costs. Progress in turning the business around will take time to achieve, but looking ahead we believe that this review will result in a leaner, more focused organisation that we are confident will return to profitable revenue growth. The early signs of trading improvement are evident in recent months."
As an ambitious young man with qualifications on his mind Scallan also showed early promise. He studied electrical and electronic engineering at university before becoming a chartered engineer and a member of the Institute of Engineering and Technology. He counts himself 'lucky' to have been given a summer placement with a start-up telecoms company, a break that sparked Scallan's 'passion' for comms, and a door-opener that led him to the next stages of his career. "Everything leading up to becoming CEO of Pinnacle Technology has been informed by those different stages, and I wouldn't be where I am without those key experiences," commented Scallan.
Prior to his role at Pinnacle Scallan was Director of Customer Solutions at Virgin Media Business, a job he was given after a nine year tenure at Virgin Media fulfilling a number of commercial and operational roles including P&L management of the data products portfolio, customer engineering and overseeing a number of organisational restructuring activities. Before joining Virgin Media Scallan completed a stint at Energis where he was responsible for broadband, data and Internet related programmes. In The Netherlands, he held the position of Networks Director for Enertel NV and was involved in the sale of the business to a Dutch venture capital group.
Despite its recent troubles Pinnacle has also achieved some notable successes such as providing services for major events like the Queen's Diamond Jubilee celebrations and the Olympic Games. "Those were huge events in UK history and it makes me proud that we were at the centre of them," added Scallan. "Early indications from our renewed strategy demonstrate that we can replicate such successes. A number of clients are seeking professional services from Pinnacle as well as renewing their existing technology solutions. Further opportunities have been identified including telemarketing and greater sales resources, core infrastructure and systems, as well as cost reductions, while providing general working capital that will act as a buffer for day-to-day purposes."
Pinnacle Technology Group focuses on the business market for IT and communications services across the UK. Having grown since inception both organically and through a series of acquisitions, the Group offers a range of IT managed services and solutions including managed support services, unified communications and collaboration, IT security, voice, broadband and mobile communications, hosted services and infrastructure services. It operates as a value added reseller and integrator, and is focused on providing these services both as an integrated offering to the SME market and more broadly to the mid-market and public sector.
An important aspect of Scallan's turnaround plan is to ensure that the company's portfolio is aligned to the demands of the market. "Some of the main trends we have seen include the growing importance of cyber security and the need for all organisations to have a strong IT security capability to deal with threats," he stated. "This has been clear in the mid-market and public sector for at least the last couple of years, however it is increasingly relevant to small and medium businesses now."
Data security and backup is also top priority, but Scallan emphasised that the solution does not always need to be cloud-based, rather a data strategy and backup solution that is appropriate to the particular needs of individual customers. "We will continue to grow our IT services and security propositions, driving the shift to professional and managed services," noted Scallan. "These will be underpinned by strong and valued voice, broadband and mobile offerings. These days telecommunications is about the convergence of multiple technologies that enable greater productivity and collaboration. These trends, coupled with providing managed IT and cyber security, enable B2B providers like Pinnacle Technology to provide a client's complete communication needs."
This capability is particularly relevant in the small and medium business space, a core market for Pinnacle. The firm also has a strong proposition for the mid-sized enterprise and public sector markets, particularly where customers have buying expertise and want to work with a partner that provides best-of-breed services. "Our view is that technology should be an enabler," added Scallan. "We provide customers with consultancy and professional services. We source best-of-breed solutions and therefore become the customer's trusted advisor.
"To be successful we must engage with a broader range of stakeholders when assessing the prospect's needs. The IT director is important but the technologies we provide touch many parts of an organisation. We find ourselves needing to engage with, and understand, many other parts of the company."
Focusing on consultancy and areas like data security and backup is just part of the story. A significant theme in Pinnacle's rewritten narrative is an ability to react fast to the evolving needs of the market. "Our people are critical to this," commented Scallan. "We have almost 50 staff and they are key to our strategy for growth. Having a good team that is passionate about their job is essential. We can also react quicker because we're a streamlined business that can see the whole picture. The bigger the company, the more time it takes to manoeuvre. Furthermore, we welcome challenges because they come hand in hand with market opportunities."