Adapt IT expects earnings rise

JSE-listed Adapt IT Group expects headline earnings per share to be between 16.19 and 18.49 cents for the year ended June 2012, from 11.46 cents in 2011.

The group anticipates earnings per share to be between 16.22 and 18.50 cents, compared to the earnings per share of 11.36 cents in the prior year.

In June 2011, Adapt IT reported revenue of R 180.9 million and an operating profit of R15.04 million.

The board declared ordinary dividend of 2.84 cents per share, representing a four-times dividend cover.

Adapt IT is made up of three subsidiaries – namely, Adapt IT, ITS Holdings and Apply IT – which provide a variety of specialised IT solutions and services across a range of business environments.

In reporting its half year results, CEO Sbu Shabalala said that Adapt IT Group continued to pursue its long-term strategy to deliver sustainable above average returns to shareholders by focusing on a combination of organic and acquisitive growth.

The group purchased BI Planning Services effective 1 January 2012, to enhance its product offerings and provide access to customers within the Financial Services Sector.

“The group will seek further significant earnings enhancing acquisitions. The group continues to grow its footprint in the broader African and International markets and maintains its tight focus on improving profit margins, seeking greater operational efficiencies and engaging positively with all its stakeholders in order to meet their expectations,” Shabalala said.

“We envisage the second half of the year to remain challenging, however, we are favourably positioned to take advantage of the opportunities presented by our markets,” he added.

For the interim period, revenue increased by 8% to R92.3 million and profit from operations was 12% higher at R7.2 million.

Shares in Adapt IT declined 5 cents to R1.05 on the JSE, shortly before 13:00.

The group expects to publish its results on about 21 August 2012.

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Adapt IT expects earnings rise