AdaptIT grows profit

Johannesburg, 07 Oct 2008

JSE-listed software development solutions group AdaptIT Holdings has released its first set of interim results since the merger between three KwaZulu-Natal-based ICT companies last year.

The company, whose current structure comes from the merging of InfoWave, Adapt-IT and ApplyIT, reported that, for the six months ended 31 August, revenue grew 37% year-on-year, to R37.5 million.

Profit from operations grew 63%, to R6.7 million. Profit attributable to ordinary shareholders grew 37%, to R4.2 million, while earnings per share grew by 23%, to 4.36c per share on the comparative period in the prior year.

“ApplyIT contributed a profit of R1.2 million to the group. Adapt-IT contributed a profit of R0.5 million to the group. Isizinda Consulting, a subsidiary acquired as part of the merger, contributed a profit of R0.3 million,” the group says in its SENS announcement.

The group says 2008 has been a difficult year for most industries in SA, as well as worldwide.

"The timing of the merger helped, since we needed to look inwards at our operational efficiency and internal alignment. Also, the effects of what is now a diversified service offering has come to our aid as far as coping under the difficult economic climate is concerned. Our strategy will always be to maintain relationships with our existing clients and this is definitely reflected in our results," says CEO Sbu Shabalala.

"The ICT industry is a key growth area for the continued development of the economy in SA," he adds. "AdaptIT strives for high-quality service so that clients are in turn able to run their own businesses efficiently."

Through the merger last year, AdaptIT has diversified its offerings to encompass total software solutions and technology, as well as giving it a high empowerment score, putting it in the top 20 most empowered companies on the JSE.