JSE-listed Adapt IT Group, a provider of a variety of specialised turnkey IT solutions and services to the education, manufacturing, energy and financial services sectors, today announced interim results for the period ended 31 December 2013. "We are pleased to report another set of good results in a challenging trading environment," says Adapt IT Group CEO Sbu Shabalala.
Turnover for the six months ended December 2013 increased 39% to R189.6 million (R135.9 million in 2012), with the education sector contributing R60 million; manufacturing sector R68.4 million; energy sector R28 million; and financial services sector R33.2 million of the turnover.
Headline earnings per share increased 65% to 13.74 cents (8.35 cents in 2012). The interim earnings per share is 64% higher at 13.71 cents (8.36 cents in 2012). Operating profit has increased to R20.5 million, up by 75% from R11.7 million.
Shabalala says he believes the future will provide for even more exciting opportunities: "We are building on the strong foundation already established in order to create a sizable leading ICT business, which delivers above sector average growth and returns."
During the reporting period, Adapt IT acquired the Aquilon companies ("Aquilon"), a provider of consulting and systems integration for the oil and gas sector. Forming part of the energy segment of Adapt IT, Aquilon added R28 million in turnover for the reporting period; a deal that was effective from 1 October 2013 and worth a maximum purchase consideration of R98 million.
"The Aquilon acquisition extended Adapt IT's services to Africa's growing energy sector, strengthened the company's presence in Cape Town and bolstered our SAP solutions expertise. We have improved our solutions and services to the benefit of our clients and enhanced the ability to deliver meaningful, long-term value to our shareholders."
According to Shabalala, the company will continue to realise synergies between its specialised software businesses to yield higher organic growth and margins, with increasing focus on other African countries. Further strategic, synergistic and earnings enhancing software business acquisitions will continue to be pursued.
In the second half of the year, Adapt IT will increase its focus on transformation as a priority, to ensure the group aligns with the new broad-based black economic empowerment codes.
"Adapt IT's success would not have been possible without the continued support of our customers, partners, service providers, members of the board and the employees' dedication; we are grateful for their continued support," concludes Shabalala.
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