{"id":31554,"date":"2013-02-11T16:52:30","date_gmt":"2013-02-11T14:52:30","guid":{"rendered":"http:\/\/businesstech.co.za\/news\/?p=31554"},"modified":"2013-02-12T10:15:07","modified_gmt":"2013-02-12T08:15:07","slug":"adapt-it-lifted-by-acquisition-strategy","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/trending\/31554\/adapt-it-lifted-by-acquisition-strategy\/","title":{"rendered":"Adapt IT lifted by acquisition strategy"},"content":{"rendered":"

JSE listed Adapt IT Group<\/a> on Monday (11 February) reported a 52% increase in revenue to R140.1 million in\u00a0interim results for the period ended December 2012, citing the\u00a0success\u00a0of its diversification and\u00a0acquisitive growth strategy.<\/p>\n

Operating profit improved to R11.6 million, up by 60% from R7.2 million before.<\/p>\n

Headline earnings per share increased 35% from 6.19 cents to 8.35 cents with profit before tax increasing by 54% to R14.2 million.<\/p>\n

The group operates in the following sectors, education, which contributes 41%, mining and manufacturing which accounts for 43%, and financial services at 16% of the revenue.<\/p>\n

Acquisitive growth<\/strong><\/p>\n

Adapt IT Group CEO, Sbu Shabalala<\/a>\u00a0attributed\u00a0the success of the group to its focus\u00a0on a combination of organic and acquisitive growth.<\/p>\n

In October,\u00a0the group acquired\u00a0outsourcing service provider,\u00a0Swicon360, in a deal worth\u00a0R11.7 million, which AdaptIT \u00a0said added R10 million in turnover to the reporting period.<\/p>\n

\u201cThe integration is progressing as planned, with Swicon360 providing additional depth and expertise in SAP technology and solutions to the Adapt IT Group,” he said.<\/p>\n

“The acquisition is extending value-added services to our existing customer base in the mining and manufacturing industries and has greatly aided to remove barriers of entry into new sectors, while strengthening our presence in Gauteng,\u201d \u00a0Shabalala said.<\/p>\n

The CEO told BusinessTech that the company would continue to pursue its\u00a0diversification and\u00a0acquisitive growth strategy. “You can always assume that we are talking to more than one (company) at any given time,” he said.<\/p>\n

Africa calling<\/strong><\/p>\n

The Adapt IT Group, with 314 permanent employees and 64 contractors throughout South Africa, also has\u00a0two regional offices in the United Kingdom and New Zealand. \u00a0The majority of the group’s customers are based in Africa, Europe, the USA and Australia.<\/p>\n

According to\u00a0Shabalala, Adapt IT aims to develop its African footprint \u00a0“more aggressively” in the coming period, targeting the SADEC region, and East Africa, including Kenya, Tanzania and Rwanda. \u00a0He added that Uganda was also on the company’s radar.<\/p>\n

Looking ahead<\/strong><\/p>\n

\u201cWe anticipate a successful second half of the year,\u201d said Shabalala.<\/p>\n

\u201cThe economic and trading environment is improving both in South Africa and globally. Adapt IT is better positioned to take advantage of future software and services opportunities due to our increased service diversity and sector reach.”<\/p>\n

More on Adapt IT<\/h3>\n

Adapt IT makes R10.4m cash acquisition<\/strong><\/a><\/p>\n

Adapt IT FY revenue up 24%<\/strong><\/a><\/p>\n

Adapt IT expects earnings rise<\/strong><\/a><\/p>\n

Adapt IT H1 HEPS up 74% to 6.19 cents<\/a><\/strong><\/p>\n

Adapt IT appoints new chairman<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

JSE listed Adapt IT Group on Monday (11 February) reported a 52% increase in revenue to R140.1 million in interim results for the period ended December 2012, citing its diversification and acquisitive growth strategy.<\/p>\n","protected":false},"author":9,"featured_media":5792,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31,1],"tags":[3899,26,3556],"class_list":["post-31554","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-it-services","category-trending","tag-adapt-it","tag-headline","tag-sbu-shabalala"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/31554","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=31554"}],"version-history":[{"count":11,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/31554\/revisions"}],"predecessor-version":[{"id":31580,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/31554\/revisions\/31580"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/5792"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=31554"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=31554"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=31554"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}