At its half-year, Adapt IT Holdings has announced a 40% increase in revenue to R85,1-million against R60,6-million in the last half-year period. Profit from operations was 12% higher at R6,5-million.
The interim Earnings Per Share (EPS) were lower than the comparable period at 3,43 cents per share (4,73 cps), with headline EPS (HEPS) higher at 3,56 cps (3,50 cps).
Sbu Shabalala, CEO of Adapt IT Holdings says the company is poised for significant growth since its buy-out of non-controlling shareholders at ITS Holdings and ApplyIT.
“As a result of transaction costs, the interim EPS was lower than the comparative period. It was also impacted by the change in year-end resulting in timing of certain annual licence fee income and the once-off discount on acquisition in the comparative EPS of 2009.”
Shabalala says the positive impact on earnings from the minority acquisitions will reflect in the results going forward and remains confident in the future growth of the company.
“We have delivered strong organic as well as acquisitive growth and will continue to pursue our long-term strategy of delivering sustainable, above average returns to shareholders,” says Shabalala.
By focusing on a combination of organic growth in the established and new sectors of the ICT market, Adapt IT plans to grow aggressively. “We have proven ourselves in the past three years, quadrupling the size of the company, and are ready to take it to the next level by seeking further significant organic growth and earnings enhancing acquisitions.”
Shabalala says it has been 18 months since the initial acquisition of ITS Holdings and, while the group will continue to focus on improving profit margins, it is looking to acquire profitable businesses to meet specific strategic objectives.
“Adapt IT is well-positioned to take advantage of the anticipated economic recovery. We have a very strong base in Durban and Pretoria and are now looking to strengthen our presence in Johannesburg and Cape Town.”
He says the company aims to enter the SAP product space and other new sectors, especially looking to penetrate the financial service sector, which the company considers to be "ICT intense".
“We believe that a product and sector strategy across the targeted geographies will assist us in achieving our financial goals,” says Shabalala.
The company will also continue to work with government to better manage the education sector, using its 25 years of administration software experience.
Acording to Shabalala, Adapt IT has several financing options available for future acquisitions.