Adapt IT FY revenue up 24%

JSE-listed Adapt IT Group announced on Tuesday (21 August) its annual results for the year ending 30 June 2012, reflecting a 24% increase in revenue to R224.8 million.

Operating profit increased by 48% to R22.2 million, while basic earnings per share (EPS) were 54% higher than the comparable period at 17.46 cents per share. Headline earning per share rose 52% to 17.45 cents per share, from 11.46 cents in 2011.

The group announced the declaration of its 10th dividend of 4.84 cents per share, which is 70% higher than dividend declared last year, and payable on the 17th of September 2012.

Over the past five years, the group said its revenue  increased four-fold from R56.4 million to R224.8 million, operating profit from R8.5 million to R22.2 million, and HEPS from 8.17 cents per share to 17.45 cents per share.

The staff complement has more than doubled from 121 to 277 employees at the end of June 2012.

Sbu Shabalala, CEO of Adapt IT Holdings said: “The group delivered a sterling financial performance under challenging market conditions, through the implementation of the sustainable growth and diversification strategy adopted by the board. The strategy aims to deliver revenue and profits higher than average returns for the South African ICT market.

“Some of the key strategic achievements for the year under review included: increasing education sector market penetration;improving the manufacturing sector operational efficiency; introducing the financial services sector competence through the BI Planning Services (BiPS) acquisition; improving customer service; and maintaining the level 3 BBBEE rating.”

Shabalala said that the group is progressing with its initiative to attract new customers, led by operational management who are implementing the organisation’s organic growth strategy.

“The group continues to seek earnings enhancing acquisitions,” Adapt IT said.

“In spite of the global economy not being expected to experience a dramatic turnaround in the next financial year, we continue to seek growth prudently and explore diversification into higher growth sectors to hedge against any downturn.”

“We believe that the Adapt IT group is well placed to continue its performance and that it is fast becoming a compelling investment in shareholder portfolios,” Shabalala said.

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Adapt IT FY revenue up 24%