Following its acquisition of SAP specialist Swicon360 in 2012, JSE-listed technology group AdaptIT says it is again looking for acquisitions of companies that operate in complementary areas and that will bring long-term, blue-chip clients to the table.

The company’s CEO, Sbu Shabalala, made the comments when announcing its 2013 annual results, for the 12 months ended 30 June.

The Durban-based company is in a strong financial position and has a recurring revenue model and low capital expenditure, Shabalala said.

For the financial year, Adapt IT lifted headline earnings per share by 28% on the back of a 36% rise in revenue to R306m. It declared a dividend of 5,56c/share.

Operating profit at the group, which supplies IT services to the education, manufacturing and financial services sectors, rose by 32% to R29,4m. Annuity revenue made up 40% of sales for the period. In 2013, 44% of Adapt IT’s revenue came from manufacturing clients, 40% from education, and 16% from financial services.

Since July, Adapt IT has folded its subsidiary business into one main operating unit. “This allows us to do business under one Adapt IT brand and contributes to improving our value proposition and service to customers,” Shabalala said.

In the 2014 financial year, the company wants to improve its presence across South Africa and extend its presence in other African markets. Countries north of the border generated 19% of 2013 group revenue.

Adapt IT was trading marginally weaker shortly after publication of the results. The counter has added 164% in the past year, making it one of the best performers on the JSE. — (c) 2013 NewsCentral Media