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”.

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