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Adapt IT sees earnings boost

Nicola Mawson
By Nicola Mawson, Contributor.
Johannesburg, 23 Jan 2015
Adapt IT's growth is thanks to product and geographical diversity, says CEO Sbu Shabalala.
Adapt IT's growth is thanks to product and geographical diversity, says CEO Sbu Shabalala.

Adapt IT, which has a history of growing through acquisitions and organically, expects to report higher earnings next month when it unveils its interim results.

The listed company yesterday told shareholders that earnings per share should come in between 25.5% and 45.5% up in the six months to December. Headline earnings per share - seen as a key indicator of a company's performance - are expected to be between 22.9% and 42.9% better than in 2013.

JSE rules require companies to alert shareholders as soon as they are aware their earnings will differ from the previous comparative period by 20% or more.

Adapt IT did not explain the reasons for the improved results. However, CEO Sbu Shabalala previously attributed the group's growth to its geographical and product diversity.

In the year to June, headline earnings per share leapt 55.1%, while revenue gained 33.9% to R408.5 million, and its bottom line grew from R26 million to R38.9 million.

At the time, Shabalala said the group's growth had exceeded ICT industry averages. "This has not only attracted additional institutional following, but increased shareholder confidence in Adapt IT and its development strategy."

Last year, acquisitions accounted for 17% of its top line improvement, down from the 26% reported at half year, but Shabalala expected this figure to improve to 25% this year.

Adapt IT, which has four operating segments in education, manufacturing, energy and financial services, will report its results on 9 February.

Its share closed at 830c yesterday, a 16c or 1.97% improvement compared with the JSE's all share index, which gained 0.57%.

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