Fifth year of headline growht for AdaptIT

2014-08-19 00:00

DURBAN-based information technology group AdaptIT, maintained its five year track record by growing headline earnings per share by 55,1% in the year to June 30, in spite of the uncertain economic environment.

Sbu Shabalala, chief executive and founder said the company’s growth had far exceeded information and communications technology industry averages.

“I don’t think we could have done better than we did with the market being what it is,” he said.

A 12th dividend was declared — the 8,23 cents per share payout represented a 48% increase on the prior year’s dividend. Turnover increased to R408,5 million from R306,04 million. The share price fell 3,42% to R7,05 around lunch time yesterday — the price hit a 52 week high on April 21 of R9,49 per share.

Tangible asset value per share is 46,73c per share. Compound annual earnings growth of the past five years has been about 40%, said Shabalala.

During the year the Aquilon group was acquired and it is now part of the Adapt IT Energy Sector. “This acquisition has provided entry into the oil and gas industry, extending our SAP solution competence, introducing supply chain management solutions and offering Adapt IT excellent future growth potential,” said Shabalala.

Turnover from the energy sector was R70,7 million and a R18,8 million profit from operations was reported.

Shabalala said AdaptIT had put six months into ensuring that Aquilon was in a position to contribute to the growth of the group, such as for instance, adding middle management depth and making sure it was in a position to take on a bigger volume of contracts.

He said every business unit in the group had grown except manufacturing, where margins had been depressed due to difficult trade conditions.

The group succeeded in its international expansion with 25% of its turnover from foreign business with a specific focus on the rest of Africa: “We provide software and services to 14 other African countries and a further six countries beyond Africa and this is a key factor in diversifying risk and growing our dollar-based revenues,” said Shabalala.

He added the group is “solidly positioned to unlock further organic growth combined with additional strategic acquisitions”.

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Comments have been closed for this article.

Inside News24

 
/News

Book flights

Compare, Book, Fly

Traffic Alerts
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.