Leading ICT software and services company, Adapt IT Holdings Ltd (Adapt IT) – the only JSE listed ICT company headquartered in KwaZulu-Natal – has reported interim financial results that indicate positive growth within South Africa’s ICT sector. Delivering solid returns in a difficult market environment, net profit rose 17.6% to R10.7 million, compared to R9.1 million in the previous year, with earnings per share up by 18.6% at 11.20 cents.

 

The 89% growth in revenue to R146.2 million is attributable to 22% 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 Ltd (ITS), a specialised provider of integrated software for the higher and further education sectors.

 

Adapt IT Financial Director, Siboniso Shabalala comments on the well-timed move, “We are naturally extremely pleased with the favourable topline 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.”

 

While improving operational efficiencies is a strategic objective shared by many companies, actually implementing these effectively can be challenging. Adapt IT has clearly succeeded in this area – further demonstrated by the company’s relocation to new “green” offices in January this year, which has proved to be hugely beneficial in terms of efficiency, reliability and security.

 

Commenting on local business prospects, Shabalala explained 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significant investments in IT due to the recent global economic downturn, there are simultaneously many clients with outdated systems that require immediate upgrading. He comments, “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.”

Together with Adapt IT’s obvious growth trajectory, the company has also been recognised for business excellence in the Broad-Based Black Economic Empowerment (BBBEE) arena. Scooping the uMyezane BEE Business of the Year Award (December 2009) as well as being named the 7th most black empowered company on the JSE (Financial Mail, April 2009), Adapt IT is clearly making an exemplary contribution towards essential skills and enterprise development in this country.

 

In line with the company’s strategy of pursuing acquisitive growth into new markets, Adapt IT will continue to explore companies within South Africa that can complement the current service offering, thereby further benefitting the growing client-base.