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Adapt IT predicts earnings jump

Paula Gilbert
By Paula Gilbert, ITWeb telecoms editor.
Johannesburg, 29 Jan 2016
Adapt IT expects both interim HEPS and EPS to rise by between 37% and 47%.
Adapt IT expects both interim HEPS and EPS to rise by between 37% and 47%.

Adapt IT expects its half-year results to show a considerable rise in earnings. Headline earnings per share (HEPS) are expected to be between 37.4% and 47.4% higher for the six months ended 31 December 2015, coming in at between 23.12c and 24.80c.

Earnings per share (EPS) will likely fall between 23.15c and 24.83c, reflecting an increase of between 37.7% and 47.7% compared to a year ago.

The IT services company has also restated its results for both its 2014 interim results and for the full year ending in June 2015.

The firm says this is because "in accounting for the business combination of AspiviaUnison Proprietary Limited for the six-month period ended 31 December 2014, and the year ended 30 June 2015, no fair value was placed on intangible assets other than goodwill". The valuation of these intangible assets ? namely customer relationships and internally-generated software ? has now been finalised.

The restating sees the value of intangible assets acquired increase to R82.6 million while related deferred tax liability rises to R23.1 million. This results in a decrease in goodwill of R59.5 million.

This means HEPS and EPS for the 31 December 2014 results both dropped around 9.5%, while a 9% decrease in HEPS and EPS for the 30 June 2015 results was felt.

The company's latest interim financial results are expected to be released on 8 February.

Adapt IT provides 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.

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