Johannesburg - IT outsourcing company Adapt IT has again benefited from its strategy of acquiring companies to complement its organic growth as it boosted its top line 19 percent in the first half of the year.
The listed company said revenue moved up to R310.4 million in the six months to December, with organic growth of 13 percent and acquisitive growth of 6 percent.
During the period, the company bought CQS Investment Holdings for R216.8 million, but the company was not consolidated until after Competition Commission approval, which was granted in December and did not contribute to the interim results. CQS provides niche audit, financial and risk management software services and solutions.
Profit from operations gained 50 percent to R52.5 million, and the operating profit gained to 16.9 percent from 14.5 percent.
Read also: Adapt IT buys CQS in R217m deal
South Africa represented 72 percent of turnover, with 10 percent from other African countries and 18 percent from global customers.
The company provides a variety of specialised IT software solutions and services to education, manufacturing, financial services and energy sector clients.
Adapt IT has more than 700 employees and customers in 38 countries in Africa, Asia, Australasia, Europe and North America.
Headline earnings per share - a key indicator of financial performance as this metric strips out once-off items - moved up 42 percent to 23.96 c, while earnings per share gained 43 percent to 23.99c.
“We have been consistent in pursuing diversification through an organic and acquisitive growth strategy which has contributed to this positive set of results for Adapt IT,” says Adapt IT CEO Sbu Shabalala.
Adapt IT declared a 10.9 c dividend.
The company’s share price was up 1.92 percent in mid-morning trade to R13.25.
“Despite the challenging market conditions, our outlook remains positive,” adds Shabalala.
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