Adapt IT reports a 36% turnover increase for the year

Adapt IT announces interim results
Sbu Shabalala, CEO of Adapt IT. (Image source: MyPR)

Adapt IT, a global software provider, announced its financial results for the year ended 30 June 2018.
Sbu Shabalala, CEO of Adapt IT (Image source: MyPR)

Adapt IT, a global software provider, announced its financial results for the year ended 30 June 2018.

The company reported a turnover increase of 36% to R1,35bn for the year. 13% of that was organic growth, while another 30% was mainly comprised of the acquisition of the Micros South Africa hospitality group. Micros having a talented team of over 300 employees, provides world-class solutions for the Hospitality industry and the division supports business-critical processes by providing software solutions to 4,200 hotel, retail and food and beverage outlets in 18 countries.

Earnings before interest, tax, depreciation, and amortisation (EBITDA) increased by 39% to R270 million, while profit before interest and tax (PBIT) grew 45% to R218 million. Profit attributable to equity shareholders grew 38%, while the weighted average number of shares in issue grew 5% over the prior period.

“Adapt IT’s diversified growth strategy has contributed positively to above-industry turnover growth during the reporting period,” says Adapt IT CEO, Sbu Shabalala. “Our Pan-African market focus on software sales also assisted with the improvement in organic growth, while the company’s strategic entry into the Hospitality sector, through acquisition, was additive.”

Adapt IT initiated a share buyback programme to take advantage of the ADI share recently having been undervalued. Since 1 July 2017, Adapt IT repurchased 9,3 million shares or 5.8% of the issued shares, at a weighted average price of 784 cents per share, utilising cash of R73 million.

This growth was not achieved without the influence of a few current IT trends. The idea of software as a service plays an important role in the company’s growth strategy because of apparent changes in the way that customers consume and deploy software. IOT and dipping into the telecommunications business have also had a significant impact on the company’s growth.

Because Adapt IT has an established overseas market in software sales and provides services to the Education, Manufacturing, Energy, Financial Services, Communications and Hospitality sectors, its annual turnover is expected to keeping growing towards its 2020 target.

“Adapt IT is a well-diversified software business providing solutions that enable customers to achieve more. We aim to continue delivering growth and returns, which are above the sector average, in line with our 2020 annualised revenue target of R3 billion and beyond,” said Shabalala.

By Daniëlle Kruger
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