Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News

      Public money, private plans: MPs demand Post Office transparency

      13 June 2025

      Coal to cash: South Africa gets major boost for energy shift

      13 June 2025

      China is behind in AI chips – but for how much longer?

      13 June 2025

      Singapore soared – why can’t we? Lessons South Africa refuses to learn

      13 June 2025

      10 red flags for Apple investors

      13 June 2025
    • World

      Yahoo tries to make its mail service relevant again

      13 June 2025

      Qualcomm shows off new chip for AI smart glasses

      11 June 2025

      Trump tariffs to dim 2025 smartphone shipments

      4 June 2025

      Shrimp Jesus and the AI ad invasion

      4 June 2025

      Apple slams EU rules as ‘flawed and costly’ in major legal pushback

      2 June 2025
    • In-depth

      Grok promised bias-free chat. Then came the edits

      2 June 2025

      Digital fortress: We go inside JB5, Teraco’s giant new AI-ready data centre

      30 May 2025

      Sam Altman and Jony Ive’s big bet to out-Apple Apple

      22 May 2025

      South Africa unveils big state digital reform programme

      12 May 2025

      Is this the end of Google Search as we know it?

      12 May 2025
    • TCS

      TechCentral Nexus S0E1: Starlink, BEE and a new leader at Vodacom

      8 June 2025

      TCS+ | The future of mobile money, with MTN’s Kagiso Mothibi

      6 June 2025

      TCS+ | AI is more than hype: Workday execs unpack real human impact

      4 June 2025

      TCS | Sentiv, and the story behind the buyout of Altron Nexus

      3 June 2025

      TCS | Signal restored: Unpacking the Blue Label and Cell C turnaround

      28 May 2025
    • Opinion

      Beyond the box: why IT distribution depends on real partnerships

      2 June 2025

      South Africa’s next crisis? Being offline in an AI-driven world

      2 June 2025

      Digital giants boost South African news media – and get blamed for it

      29 May 2025

      Solar panic? The truth about SSEG, fines and municipal rules

      14 April 2025

      Data protection must be crypto industry’s top priority

      9 April 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Wipro
      • Workday
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » IT services » Weak economy takes its toll on Adapt IT

    Weak economy takes its toll on Adapt IT

    By Duncan McLeod29 January 2019
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    Listed technology group Adapt IT reported a slight decline in revenue and flat earnings in the six months ended 31 December 2018 as the weak South African economy took its toll.

    Headline earnings per share climbed by just 1% (5% normalised) on the back of a decline in revenue from R676-million to R667-million. Adapt IT generates 78% of its turnover in South Africa, with 14% coming from the rest of Africa.

    “There was no organic growth from continuing operations due to the challenging economic environment persisting in the South African market, particularly low project turnover in the energy and hospitality sectors,” the group said on Tuesday.

    There was no organic growth from continuing operations due to the challenging economic environment in South Africa

    Acquisitive growth was 4%. One positive was earnings before interest, tax, depreciation and amortisation (Ebitda) from continuing operations, which increased by 10% to R118-million, representing an improvement in the Ebitda margin to 18% from 16% a year ago.

    “Annuity turnover is a healthy 58% over the period and the five-year compound annual growth rate for turnover was 21%,” it said. Cash generated from operations grew by 105% to R58.3-million (2017: R28,5 million).

    It is Adapt IT’s policy not to pay a dividend at the half-year.

    It said it raised funds from Standard Bank in December 2018 to fund future working capital requirements and acquisitions. Proceeds from the facility were also applied to settle monies owed to Investec.

    Acquisitions

    During the first six months of the financial year, Adapt IT bought Strive Software for R12.5-million, which was consolidated effective 1 September 2018. “This serves to augment the education division’s offerings by facilitating diversification into the private college market.”

    It also bought the remaining 30% minority shareholding of CQS Confirmations, a subsidiary originally acquired with the CQS business, for a consideration of R15.7-million, which was effective 1 December 2018.

    It acquired Conor Solutions for R80-million. This business provides software to the telecommunications industry focused on mobile technologies. Conor was consolidated with effect from 31 December 2018 and had no contribution to comprehensive income in the latest results.

    Adapt IT repurchased three million (1.9%) of its issued ordinary shares in the open market for R22.3-million at an average price of R7.33/share during the reporting period. It held 10.8 million treasury shares at the end of 2018.

    “Despite the current market conditions, our medium and longer-term outlook is optimistic as we continue to build upon the strong foundation we have established to create a sizeable, scalable, leading ICT business.”

    Despite the current market conditions, our medium and longer-term outlook is optimistic…

    Adapt IT said it is “well diversified” across industry sectors and geographies and will continue to extend geographic reach across Africa and the rest of the world. “Foreign markets represent 22% of turnover while software and services are delivered to 24 other African countries. This expansion is a key factor in diversifying market risk and growing hard-currency revenue streams.

    “While most of the group’s revenue is generated from South Africa, the outlook is to continue to diversify the business into the rest of Africa and global markets.”

    Adapt IT’s shares were trading 1.7% lower shortly after the market opened in Johannesburg on Tuesday at R6.26 apiece. In the past year, the shares have lost 33% of their value. Over three years, they have fallen by 48.6%.  — © 2019 NewsCentral Media



    Adapt IT top
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleNick Clegg says Facebook working to clean up its act
    Next Article Maria Ramos to step down as Absa CEO

    Related Posts

    New CEO for Adapt IT

    4 February 2025

    Tiffany Dunsdon on Adapt IT’s wild year – and fighting off a hostile bidder

    21 January 2022

    The best-performing tech shares on the JSE in 2021

    3 January 2022
    Company News

    Huawei Watch Fit 4 Series: smarter sensors, sharper design, stronger performance

    13 June 2025

    Change Logic and BankservAfrica set new benchmark with PayShap roll-out

    13 June 2025

    SAPHILA 2025 – transcending with purpose, connection and AI-powered vision

    13 June 2025
    Opinion

    Beyond the box: why IT distribution depends on real partnerships

    2 June 2025

    South Africa’s next crisis? Being offline in an AI-driven world

    2 June 2025

    Digital giants boost South African news media – and get blamed for it

    29 May 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2025 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.