Adapt IT Holdings reports 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 (ITS), a specialised provider of integrated software for the higher and further education sectors.
Adapt IT financial director Siboniso Shabalala comments: "We are 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."
Commenting on local business prospects, Shabalala explains 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significant investments in IT due to the recent global economic downturn, there are simultaneously many clients with outdated systems that require immediate upgrading.
"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."Adapt IT will continue to explore companies within South Africa that can complement the current service offering, thereby further benefiting the growing client-base.