Adapt IT profit surges 85%

JSE-listed Adapt IT, a provider of specialised software solutions and services, has reported an 85% rise in operating profit interim results for the six months ended December 2014, to R38 million.

“In line with our strategic expansion plan, our strong organic growth in tandem with strategic acquisitions have yielded continued positive results for Adapt IT,” said Adapt IT CEO, Sbu Shabalala.

Turnover for the year increased 38% to R261 million aided by positive contributions emanating from the existing divisions’ organic growth of 11% and acquisitive growth contributing 27%.

Headline earnings per share was up 35% to 18.6 cents (2013: 13.7 cents).

On 1 September 2014, Adapt IT acquired AspiviaUnison (“AU”), a cloud-based enterprise and carrier communications management software-as-a-service (SaaS) solutions business, which has contributed positively to the financial services and manufacturing segments of Adapt IT.

“Adapt IT’s revenue is well diversified across four major sectors, improving resilience to market cycles and its strong annuity income provides long-term sustainability.

“South African revenue in the period comprises 78%, with 10% of revenue coming from other African countries and the balance from global customers. Growth in the Africa market remains a continuing focus,” the group said.

“Our outlook remains positive as we continue to build on the strong well-diversified foundation, to create a sizeable leading ICT business that delivers above ICT sector average growth and returns.” said Shabalala.