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Adapt IT’s interim profit, earnings decline

6th March 2020

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

     

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JSE-listed Adapt IT has posted a double-digit decline in profit and earnings for the six months ended December 31.

The group’s profit for the period contracted by 31% to R26-million, while it headline earnings per share (HEPS) and normalised HEPS decreased 23% and 10% to 18.93c and 31.18c respectively.

A difficult trading environment, the adoption of International Financial Reporting Standard 16 and higher finance costs impacted on the financial results for the half-year, the company highlights.

Earnings before interest, taxes, depreciation and amortisation (Ebitda) remained flat at R106-million, with an Ebitda margin of 15%.

During the six months to December 31, revenue increased by 10% to R721.2-million.

“Adapt IT achieved a 10% growth in revenue . . . aided by the contribution from strategic acquisitions made in the previous financial year, while weaker trading conditions in South Africa continued to weigh on the organic growth for some divisions reliant on Adapt IT’s primary market,” Adapt IT CEO Sbu Shabalala explained.

While organic revenue declined by 1%, acquisitions contributed a positive 11% to revenue growth through the contributions of Strive Software for two months, Conor Solutions for six months and the Wisenet group for six months, and created additional geographic diversification of revenue.

Edited by Martin Zhuwakinyu
Creamer Media Magazine Managing Editor

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