Continued focus on growth delivers strong interim results for Adapt IT
- Revenue increased 8% to R92.3 million (2010: R85.1million)
- Profit before tax increased 12% to R7.2 million (2010: R6.5 million)
- Earnings per share up 80% to 6.19 cents (2010: 3.43 cents)
- Headline earnings per share up 74% to 6.19 cents (2010: 3.56 cents)
JSE listed Adapt IT Group today announced its half year results with interim earnings per share (EPS) 80% higher than the last reported unaudited interim results to 31 December 2010 at 6.19 cents per share (3.43 cps) and headline EPS (HEPS) 74% higher at 6.19cps (3.56 cps). The minority buy-outs of the previous reporting period made a positive impact on earnings growth. Revenue increased 8% to R92.3 million against R85.1 m in the comparable period with profit from operations increasing by 12% to R7.2 million.
In the reporting period, the Adapt IT Group was made up of three subsidiaries, namely Adapt IT (Pty) Limited, ITS Holdings (Pty) and ApplyIT (Pty) Limited, which provide a variety of specialised IT solutions and services across a range of business environments. Whilst the continued tough trading conditions in the sugar industry dampened the profitability of Adapt IT, ITS increased its revenue and profitability though a focus on the higher and further education sector and ApplyIT improved its performance through securing offshore clients in the resources sector.
Sbu Shabalala, CEO of Adapt IT Holdings says that the group is on track to deliver on its long-term strategy to bring sustainable returns to shareholders by focusing on a combination of organic and acquisitive growth. Subsequent to the reporting date, the group acquired 100% of BI Planning Services (Pty) Limited (“BIPS”) with effect from 1 January 2012. “The acquisition of BIPS further strengthens the Group’s value proposition to customers adding tailored Business Intelligence solutions for the Financial services, Healthcare, Telecommunications and other sectors.”
Shabalala says that the group continues to seek further significant earnings enhancing acquisitions.
“We continue to grow our footprint in various African and International markets and maximise shareholder value by keeping a tight focus on improving profit margins, seeking greater operational efficiencies and engaging positively with all our stakeholders.”