Adapt IT shows massive 32% jump in interim profit
IT services group Adapt IT has reported a 48% increase in turnover and a 32% jump in profit for the six months ended 31 December 2016.
Turnover for the six months ended 31 December 2016 increased 48% to R460.7 million (2015: R310.4 million), the group said – however this was largely driven by its acquisitions during the period.
Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 44% to R89.9 million (2015: R62,3 million). Operating profit increased 32% to R69.5 million (2015: R52.5 million).
Organic growth was 4% and acquisitive growth was 44%, it said.
Acquisitive growth was boosted in the period by the inclusion of the CQS group (CQS) which was consolidated with effect from 31 December 2015 and had no contribution to turnover in the prior interim results.
For the first time, the company has disclosed normalised headline earnings per share (HEPS) as a result of the high non-cash expenses in terms of International Financial Reporting Standards (IFRS) due to its acquisitions.
HEPS were declared at 24.41 cps, while normalised HEPS was reported at 34.74 cps.
The company reported an interim dividend of 13.40 cps.
Looking ahead, Adapt IT said: “Whilst the current market conditions are challenging, our outlook remains positive as we continue to build on the strong, well-diversified foundation that we have established to create a sizeable, leading ICT business that delivers above sector average growth and returns.”
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