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To adjust for this growth, the group has appointed Nombali Mbambo (34) as its CFO. This allows Tiffany Dunsdon to resume her former role as commercial director of the company and MD of international operations. Among her responsibilities will be mergers and acquisitions as well as capital raising.

“As we grow we need to ensure the centre is strong enough,” says Shabalala.

Underpinning the acquisition strategy is the desire to diversify its offering. While the intention is to remain a provider of niche software solutions (that can be rolled out at scale), the company has over the years increased its horizontal penetration, expanding from its original base in manufacturing into education, financial services and oil and gas.

In the current climate this is paying off. “Our customers are feeling pressure. While they need IT in order to function effectively they are not driving any new initiatives,” says Shabalala. “Consider the challenges facing higher education, or the upstream oil and gas market, or the manufacturing industry. Our strategy is to diversify our client base rather than try to extract more from current clients. For instance we have two new education clients in Rwanda,” he says.

Market conditions are expected to remain tough. This makes it an opportune time for acquisitions and the company is well placed for this. “AdaptIT’s business is very cash generative, has spare capacity for further debt at group-level and can still issue script, so the group still has plenty of capacity to make acquisitions, says Mclachlan.

Cash and cash equivalents increased by R40 million to R77.7 million over the course of the financial year. Retained earnings increased by 40% from R159 million to R218 million over the same period.

The dividend increased by 32% to 10.90c from 8.23c.

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