Adapt IT Group Announces Outstanding Interim Results

Adapt IT Group’s consistent performance is once again apparent with the announcement of its strong Interim Results.

In brief:

• Turnover increased 53% to R135.9m (2011: R88.7 million)
• Profit before tax increased 54% to R14.3m (2011: R9.2 million)
• Headline earnings per share up 35% to 8.35 cents (2011: 6.19 cents)
• Operating Profit is up 61% to R11.67m (2011: R7.2m)

JSE listed Adapt IT Group, a leading innovative IT services and specialised solutions provider, announced outstanding interim results for the period ended 31 December 2012. Turnover increased 53% from R88.7 million in 2011 to R135.9m with the Education Sector contributing 41%, Mining and Manufacturing Sector 42% and Financial Services Sector 17% of the turnover.

Headline earnings per share increased 35% from 6.19 cents to 8.35 cents with profit before tax increasing by 54% to R14.3m from R7.2 million in 2011, representing a NPBT margin of 11%. Operating profit has increased to R11.7m, up by 61% from R7.2m.

Adapt IT Group CEO, Sbu Shabalala says he is pleased with the Group’s sterling interim performance. “Our consistent growth and good results are products of our long-term strategy that aims to deliver sustainable returns to shareholders by focusing on a combination of organic and acquisitive growth,” says Shabalala.

A noteworthy acquisition was that of Swicon360 that added R10 million in turnover to the reporting period; a deal that was effective from 1 October 2012 and worth R11,7 million. “The integration is progressing as planned, with Swicon360 providing additional depth and expertise in SAP technology and solutions to the Adapt IT Group. The acquisition is extending value-added services to our existing customer base in the mining and manufacturing industries and has greatly aided to remove barriers of entry into new sectors, while strengthening our presence in Gauteng,” explains Shabalala.

The appointment of Craig Chambers as Chairman of the Adapt IT Board in October 2012 underscored the Group’s stated organic and acquisitive growth plans. “We are looking forward to the contribution that Craig Chambers will make to the Board with more than 15 years of financial investment experience,” says Shabalala.

“We are also pleased to announce the appointment of a respected ICT professional, Oliver Fortuin, as an independent non-executive Board member with immediate effect. Fortuin brings a wealth of ICT experience to the Board and we look forward to his contribution in building the Adapt IT business.”

“We anticipate a successful second half of the year,” says Shabalala. “The economic and trading environment is improving both in South Africa and globally. Adapt IT is better positioned to take advantage of future software and services opportunities due to our increased service diversity and sector reach,” concludes Shabalala.

The Adapt IT Group, with 350 staff throughout South Africa, operates through business divisions led by a core team of executives under a single Adapt IT Group brand providing a variety of specialised turnkey IT solutions and services to the education, mining & manufacturing and financial services sectors. Swicon360 forms part of the manufacturing and mining division. The Group has over 100 customers in South Africa, East Africa, Australasia, United States and Europe and its services and solutions span the complete IT life-cycle from consulting and application design through to delivery and support.