Adapt IT saw its headline earnings per share leap 55.1% in the year to June as it benefits from its diversified portfolio.
The group this morning said revenue gained 33.9% to R408.5 million, while its bottom line grew from R26 million to R38.9 million. CEO Sbu Shabalala notes the group's growth has exceeded ICT industry averages.
"This has not only attracted additional institutional following, but increased shareholder confidence in Adapt IT and its development strategy." Adapt IT's share last traded at R7.30, giving it a market capitalisation of R814 million.
Adapt IT has also been successful in boosting income from outside SA, with a quarter of turnover coming from its international operations, where it has a specific focus on Africa. "We provide software and services to 14 other African countries and a further six countries beyond Africa, and this is a key factor in diversifying risk and growing our dollar-based revenues," says Shabalala.
At half year, the group reported revenue 39% higher at R189.6 million, while operating profit moved 75% higher, to R20.5 million.
Shabalala adds the group is strengthening its position in IT solutions and services. "We have an improved structure, a more diversified portfolio and are solidly positioned to unlock further organic growth combined with additional strategic acquisitions."
During the year, Adapt IT bought the Aquilon group of companies, which now forms part of the Adapt IT Energy Sector. "This acquisition has provided entry into the oil and gas industry, extending our SAP solution competence, introducing supply chain management solutions and offering Adapt IT excellent future growth potential," says Shabalala.
Adapt IT, which has a history of acquisitive growth, paid R38 million in cash and R8 million in shares for the company. Additional payments, taking the deal to about R100 million, are subject to profit warranties. The group ended the year with cash and cash equivalents of R15 million.
Adapt IT has more than 420 employees operating out of business divisions in Durban, Johannesburg, Pretoria and Cape Town. It provides a variety of specialised turnkey IT solutions and services to the education, mining and manufacturing, energy and financial services sectors.
The listed company has more than 320 customers in South Africa, East Africa, Asia, Australasia, United States and Europe.
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