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.” . Read full article

Adapt IT Interim Results 2010

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. Read more

Adapt IT Interim Results 2009

After the first full financial year of integrating its subsidiaries following its merger in November 2007, listed ICT company Adapt IT Holdings can truly vouch for the success of its vision and BEE strategy . The young company’s turnover grew 33% year-on-year to R75 million while its earnings per share grew by 18% to 9,44 cents per share. The percentage growth in earnings per share was lower than the percentage growth in earnings attributable to ordinary shareholders due to the shares issued in respect of the merger.

In light of its acquisitive strategy and the current economic environment, Adapt IT is increasing its dividend cover in order to retain a greater proportion of retained income.  “Right now it is the prudent decision to conserve capital and we will look to invest in good business opportunities should they arise,”explains Siboniso Shabalala, Adapt IT’s newly appointed Finance Director. Accordingly, the company has declared a seventh annual ordinary dividend of 1,86 cents per share, presenting a dividend cover of five times.

Over the next financial year, Adapt IT will pay careful attention to the diversification of its business offerings, while keeping in line with its strategy of continually adding value to its existing customer base to ensure healthy client retention rather than relying on the attraction of new customers in this tough economic climate. The company will concentrate on sound internal systems, compliance and governance in order to maximise business efficiency.

Adapt IT Annual Report 2009