revenue growth was aided by the contribution from acquisitions the previous financial year while weaker trading conditions in South Africa continued to weigh on the organic growth. Photo: Ian Landsberg/African News Agency (ANA)
revenue growth was aided by the contribution from acquisitions the previous financial year while weaker trading conditions in South Africa continued to weigh on the organic growth. Photo: Ian Landsberg/African News Agency (ANA)

Adapt IT grows revenue by 10% to R721 million

By Edward West Time of article published Feb 24, 2020

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CAPE TOWN – Adapt IT, the technology company that provides specialised software and digitally-led business solutions to the education, manufacturing, financial services, energy, communications and hospitality sectors, said Monday revenue grew 10 percent to R721 million for the six months to December 31.

The JSE-listed company's revenue growth was aided by the contribution from acquisitions the previous financial year while weaker trading conditions in South Africa continued to weigh on the organic growth, said Adapt IT chief executive, Sbu Shabalala on Monday.

The acquisitions contributed a positive 11 percent to revenue growth from the contributions of Strive Software for two months, Conor Solutions for six months and Wisenet group for six months and created additional geographic diversification of revenue.

“Weaker trading conditions in South Africa persisted affecting some of the operating segments, most notably the Hospitality segment which saw revenue dropping 6 percent," said Shabalala.

Annuity revenue was at 60 percent, compared with 58 percent in the previous comparable year. Earnings before interest, tax, depreciation and amortisation (Ebitda) remained flat at R106 million. Cash generated from operations in the six month period was R51 million, compared with R54 million in the previous comparable period.

Headline earnings per share fell 10 percent to 31,18 cents impacted by the weaker operational performance and the increase in finance costs.

Adapt IT Holdings recently announced plans to acquire Wisenet Group and Wisenet SG for R53.42 million to grow its software presence in Australasia.

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