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Adapt IT sees profit surge

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 17 Aug 2015
Adapt IT CEO Sbu Shabalala says organic growth was bolstered by strong demand in the higher education sector.
Adapt IT CEO Sbu Shabalala says organic growth was bolstered by strong demand in the higher education sector.

Adapt IT posted a strong set of full year results today, with operating profit growing by 89% to R93.8 million. Turnover for the year to June 2015 increased 42% to R575.3 million, with organic growth at 18% and acquisitive growth adding 24% to turnover.

"Organic growth was bolstered by a strong demand in the higher education sector, a sector in which the business has provided specialised software services for 29 years," says Adapt IT CEO Sbu Shabalala.

Adapt IT says a major driver of acquisitive growth was telecommunications software provider, AspiviaUnison, which was acquired by the company in September last year. AspiviaUnison develops cloud-based communications management software solutions, deployed in corporates and telecommunications carriers.

Another positive contribution came from the acquisition of Student Management Software Systems in New Zealand in March 2015.

The Adapt IT Software business is well diversified across a number of sectors and geographies, with 77% of revenue coming from South Africa, 10% from the rest of Africa and 13% from worldwide customers.

The IT solutions and services company saw headline earnings per share increasing by 35% to 46.54 cents per share. Earnings per share also rose by 35%.

"The common thread in our business is deep vertical industry knowledge combined with the niche software we develop for selected industries," says Shabalala.

The company declared a full year dividend of 10.9 cents per share, up 32% on last year's dividend pay-out.

Adapt IT provides a variety of specialised turnkey IT solutions and services to the education, mining and manufacturing, energy, telecommunications and financial services sectors. It has customers in 24 countries across Africa, Australasia, Europe, North America and South America.

Adapt IT increased its B-BBEE rating to level two contributor status through the implementation of black employment equity policies, and made a strategic enterprise development investment in a black-female-owned project management consultancy.

"B-BBEE transformation and building ICT skills in the country is a top priority for Adapt IT in order for the business to execute on its strategy," according to Shabalala.

"The company is well positioned to continue its growth trajectory by taking advantage of its unique market positioning, its improved market reach and favourable empowerment credentials," adds Shabalala.

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