DURBAN – Adapt IT withheld dividend payments for the year to end June as payments of several costs during the period weighed in on its earnings.
The information technology group said that it decided not to reward its shareholders in order to reduce debts it incurred on several once-off costs during the period.
It said the costs included an impairment of R8 million on a fixed property held for sale, a negative foreign exchange movement year-on-year of R11m, a net increase in loss allowances and provision for doubtful debts of R4m following the adoption of IFRS 9.
The group said the payments resulted in a 15 percent decline in earnings per share from continuing operations to 51.32 cents and a 6 percent decline in headline earnings per share (Heps) from continuing operations to 57.27c. It said normalised Heps from continuing operations also fell 6 percent to 76.20c.
However, revenue from continuing operations increased by 14 percent to R1.44 billion, revenue contribution consisting of 5 percent organic growth from continuing operations and 8 percent from acquisitions.