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JSE Listed Adapt IT delivered another year of strong results to 30 June 2015, growing headline earnings per share 35%. Operating profit grew 89% while profit attributable to shareholders was up 52%. Organic growth was 18% while acquisitive growth added 24% to turnover, bringing total turnover to R575-million, up 42%.

“Organic growth was bolstered by a strong demand in the higher education sector, a sector in which the business has provided specialised software services for 29 years,” says Sbu Shabalala, Adapt IT CEO. “The common thread in our business is deep vertical industry knowledge combined with the niche software we develop for selected industries.”

Adapt IT acquired telecommunications software provider, AspiviaUnison in September 2014, which was the major driver of acquisitive growth contribution. AspiviaUnison develops cloud based Communications Management software solutions, deployed in corporates and telecommunications carriers. A further offshore acquisition in the Education Sector, SMSS (Student Management Software Systems), in New Zealand also contributed positively.

The Adapt IT Software business is well diversified across a number of sectors and geographies, with 77% of revenue coming from South Africa, 10% from the rest of Africa and the 13% from worldwide customers.

Sbu Shabalala says, “B-BBEE transformation and building ICT skills in the country is a top priority for Adapt IT in order for the business to execute on its strategy.” Adapt IT increased its B-BBEE rating to a Level 2 contributor status through the implementation of black employment equity policies and made a strategic enterprise development investment in black female owned project management consultancy. Skills development initiatives involved an Academy programme which introduced additional graduates into the IT business and skilling them in specific software technologies across South Africa. As part of Corporate Social Investment, Adapt IT opened a third (3rd) Knowledge Centre in the Western Cape at Rusthof Secondary school, making technology accessible to over 3,500 previously disadvantaged South Africans.

“The company is well positioned to continue its growth trajectory by taking advantage of its unique market positioning, its improved market reach and favourable empowerment credentials” Sbu Shabalala concludes.