Durban-based IT firm Adapt IT delivers another excellent sets of results

JSE-listed IT firm Adapt IT informed investors on Thursday that headline earnings per share – South Africa’s main profit gauge – rose 36% to 57.54 cents a share for the year to end-June 2016. By Staff writer

The software and computer services firm added that its operating profit jumped 58% to R136 million.

Adapt IT CEO, Sbu Shabalala, attributed the strong performance 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 says.

Sbu Shabalala - Adapt IT CEO
Sbu Shabalala – Adapt IT CEO (Photo credit: Adapt IT)

He added that 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.”

Adapt IT derived 73% of turnover 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,” says Shabalala.

Adapt IT’s acquisition of CQS Investment Holdings was consolidated from 31 December, 2015 which 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. We will continue to seek earnings enhancing acquisitions to supplement our growth strategy,” says Shabalala.

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