Listed ICT player, Adapt IT Holdings, has achieved healthy interim results through a strong and diversified portfolio, and this, in spite of the decline in the manufacturing sector during the same period.

“Our results indicate that our diversification strategy which commenced a few years ago, has ensured that Adapt IT remains resilient. Exposure to one market is limited and this is how we have continued to succeed and grow during this highly pressurised period,” explains Sbu Shabalala, CEO of Adapt IT Holdings.

 

The company’s 60% growth in revenue, at R60,6 million compared to the same period last year is attributable mainly to organic growth but also to the acquisition of ITS Holdings. “Our strategy has been to make investments in capacity and acquisitions and see growth over time. ITS Holdings is a quality investment and we are confident that it will make a good contribution to profit in the remainder of our financial year,” says Shabalala.  ITS Holdings contributed a profit before tax of R 0.7 million in the two months since acquisition.

Net profit attributable to ordinary shareholders was at R4.5 million compared to R4.2 million in the previous period, while ordinary dividend number 7 of 1.86 cents per share was paid to shareholders on the 3rd of July 2009.

 

Interim earnings per share increased in line with profit being 4.73 cents from 4.36 cents in the comparative period, representing an 8% increase. The group has also substantially improved its cash position to R27,4m at the end of the period.

Through its strong establishment as a premium provider of ICT solutions, Adapt IT has laid a foundation that has withstood the economic turbulence of the past year. Shabalala explains: “Though we have experienced some reduction in operating profit of some segments operating in the manufacturing and mining sectors, we are confident that the economic recession will lift and the company’s prospects going into the second half of the financial year are positive.”

 

With the private sector hardest hit by the economic downturn, Adapt IT has made a move to investments in the public sector with its acquisition of ITS Holdings, a provider of educational administrative software, expanding Adapt IT’s portfolio to an international level with ITS’ regional offices in South Africa, Ireland and New Zealand. 

Adapt IT is a company committed to genuine and sustainable transformation in South Africa, ranked 7th most transformed company on the JSE by the Financial Mail’s Empowerdex survey, it is a Level 3 contributor to broad-based BEE and a “Value  Adding Enterprise” which allows its customers to recognise a very favourable 137,5% of their procurement spend for BEE purposes.