JSE-listed ICT software and services company Adapt IT Holdings this morning reported interim financial results, reflecting a significant growth in revenue, driven mainly by its acquisition strategy.
During the period under review, the company saw revenue surge 89% growth, to R146.2 million, of which 22% is attributable to organic growth and R53.7 million resulting from the company's acquisition strategy.
In June 2009, Adapt IT acquired a 51% majority stake in ITS Holdings, a specialised provider of integrated software for the higher and further education sectors.
Adapt IT also increased net profit by 17.6%, to R10.7 million, compared to R9.1 million in the previous year, with earnings per share up by 18.6%, to 11.2c.
Financial director Siboniso Shabalala says: "We are naturally extremely pleased with the favourable top-line growth, as a result of the ITS acquisition. Not only has the strategic partnership meant a diversified client portfolio, and with it adequately managed risk, but the synergy has enabled us to make intelligent use of resources and drive down costs."
Shabalala states that, while some clients have delayed significant investments in IT due to the recent global economic downturn, there are simultaneously many clients with outdated systems that require immediate upgrading.
"We have placed a great deal of emphasis on further enhancing our service offerings to clients and also in increasing our sales capacity. This improved outreach to our clients has paid dividends and is certainly part of the reason for the 22% organic growth."
The company says it will pursue acquisitive growth into new markets, and will continue to explore companies within SA that can complement its current service offering.
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