Technology services group Adapt IT has hiked its dividend per share by 23% to 13.4c, from 10.9c a year ago, on the back of a rise in earnings.
In the year ended 30 June, the JSE-listed group reported normalised headline earnings per share up 10% on turnover that rose by 25% to R993.7m.
Headline earnings per share rose by 2% to 58,76c.
Earnings before interest, tax, depreciation and amortisation — a measure of its operating performance — rose by 18% year on year to R194.3m. Attributable profit was R88.1m, up from R78.4m before.
Normalised headline earnings increased 22% to R118.5m. It has disclosed the normalised number because of the “high non-cash expenses recognised in terms of International Financial Reporting Standards due to its acquisitions”, it said.
“As acquisitions will be an ongoing hallmark of Adapt IT in line with its growth strategy, normalised headline earnings will be reported on an ongoing basis, as this disclosure will add value to the financial analysis.”
The group ended the year with R98m in cash, up from R77.7m a year ago.
Adapt IT’s share price has fallen sharply in 2017 as concerns mounted about a slowdown in organic growth in the first half of the financial year. Since 1 January, the share has tumbled 44%, to close at R8.95 on Friday.
Organic growth for the year was 6% (ahead of the 4% achieved in the first half), while acquisitive growth was 19%, Adapt IT said.
Following the year-end, Adapt IT amalgamated the businesses of acquisitions CQS, EasyRoster and Multimatics to reduce the number of group entities and achieve efficiency and savings in administrative and operational expenditure.
The recent acquisition of retail technology specialist Micros was not included in the full-year results. — (c) 2017 NewsCentral Media