Durban-based IT services company Adapt IT has turned in another strong set of financial results. Headline earnings per share climbed by 35% to 18,6c in the six months ended 31 December 2014 on the back of a 38% improvement in revenue to R261m.
Growth came from both existing operations (11% turnover growth) and acquisitions (27%), said CEO Sbu Shabalala.
The operating profit margin expanded to a healthy 14,5% from 10,8% in the same six-month period a year ago.
South African revenue now comprises 78% of the total, 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 company said.
In the second half of last year, Adapt IT acquired AspiviaUnison, a cloud-based enterprise and carrier communications management software-as-a-service solutions business. This company has “contributed positively to the financial services and manufacturing segments of Adapt IT”.
As part of its acquisition funding, Adapt IT raised R41,8m in equity and enhanced its black ownership equity status by 4,7%, and specifically its broad-based black female ownership equity status by 2,8%. It also bought a 49% interest in Uyandiswa Project Management Services, a black woman-owned project management consultancy.
Adapt IT’s share price was trading marginally down shortly after the market opened on Monday. The counter has added 58% in the past 12 months, giving the company a market capitalisation of R1,2bn. — Sapa
