WATCH: Adapt IT reports turnover increase to R674m

Johannesburg - JSE-listed software company Adapt IT reported a 46% increase in turnover to R674m for the six months ended December 31 2017 with organic growth from continuing operations being 17% and acquisitive growth contributing 35%.

Earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 29% to R116m, while profit before interest and tax grew 24% to R86m.

Headline earnings per share (HEPS) were up 22% to 29.70c from 24.41c in 2016 and normalised HEPS were up 11% to 38.73c from 34.74c in 2016.

The company’s acquisitive growth contribution of 35% comprised of the Micros South Africa hospitality group acquisition, which was consolidated with effect from July 1 2017. 

• READ: We’re on track to R3bn turnover - Adapt IT CEO

“The consistent pursuit of both our organic and acquisitive growth strategy has contributed to excellent turnover growth in the interim reporting period,” says Adapt IT CEO, Sbu Shabalala. He adds that “an improved sales capability and uptick in market sentiment contributed to the organic growth”.

Adapt IT initiated a share buyback programme to take advantage of the ADI share recently being undervalued. 

Since June 30 2017, Adapt IT reduced the number of issued shares by 5.6 million shares, or 3.5% of the issued shares, at a weighted average price of 759c per share, utilising cash of R43m.

“The outlook is positive as Adapt IT continues to build a software business that enables both our employees and our customers to achieve more. We have built a strong well-diversified foundation needed to create a sizeable leading software business that delivers above sector average growth and returns in line with our 2020 revenue target of R3bn,” Shabalala said.

Adapt IT CEO Sbu Shabalala and CFO Nombali Mbambo discuss the company’s performance after the release of its results for the six months ended 31 December 2017. pic.twitter.com/ucl5BzlHdj

— Kyle Venktess (@KyleVenktess) January 26, 2018

The software company provides services to the education, manufacturing, energy, financial services and hospitality sectors with 300 employees servicing a customer base of 4 200 in 18 countries.