Adapt IT records 38% rise in turnover

JSE-listed Adapt IT has reported a 38% rise in turnover to R796 million in financial results for the year ended June, 2016.

The company provides specialised software solutions and services to the Education, Manufacturing, Energy and Financial Services sectors.

Adapt IT increased operating profit by 58% to R136 million, and lifted headline earnings per share (HEPS) by 36%.

The group’s CEO, Sbu Shabalala, said that the strong performance can be attributed to various factors including the implementation of a strategy focused on sustainable growth and diversification.

“The Adapt IT strategy is to remain an industry focused niche software provider which grows turnover and profit at a much higher rate than the South African ICT market. We have certainly achieved this goal in the period under review and in the face of adverse trading conditions in the market,” he said.

He noted annuity turnover increased to a healthy 55% over the 2015: 52%, operating margins are up from 15% to 17%. “This is a very strong performance in a sector that is seriously challenged in the current economic climate.”

Shabalala reported that 73% of turnover was derived from the South African market, 13% from other African countries and the remaining 14% being split between the Americas, Australasia and Europe.

“In terms of currency – 80% of turnover was generated in Rands; 11% in US Dollars and 9% stemmed from the specific country currency in the rest of our international markets,” he added.

Adapt IT’s acquisition of CQS Investment Holdings was consolidated from 31 December, 2015 which Shabalala said has served to enhance the group’s presence in the Financial Services sector.

“The acquisition of CQS has significantly increased the contribution of this market by providing expansion into the auditing and accounting professions with a broader range of software offerings.”

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Adapt IT records 38% rise in turnover