Adapt IT’s international expansion proves successful

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Adapt IT’s international expansion proves successful

Group revenue for the year ended 30 June 2014 increased to 408.5 million rand from 306 million rand in 2013.

Turnover was up 33.9 per cent to 406.3 million rand for the period from 303.4 million rand in 2013, while gross profit was recorded at 178.5 million rand from 131.6 million rand in 2013.

“Our growth has exceeded the Information and Communications Technology industry averages with 33.9 per cent turnover growth, 55.1 per cent headline earning per share growth and total shareholder returns of 332 per cent,” Adapt IT CEO Sbu Shabalala said in a statement.

“This has not only attracted additional institutional following, but increased shareholder confidence in Adapt IT and its development strategy.”

[DATA ADI:Adapt IT] is a South African company that provides IT services to mining and manufacturing, energy, financial services and education industry sectors.

(READ MORE: S.Africa’s Adapt IT reports interim revenue growth)

Profit before taxation wad recorded at 50.8 million rand for the period compared to 30.7 million rand in 2013, while headline earnings per share grew to 34.55 cents from 22.27 cents in 2013.

During the period under review, Adapt IT acquired the Aquilon group of companies, which now forms part of the firm’s energy sector. The acquisition, according to Shabalala, has since provided entry into the oil and gas industry and paved more growth potential for Adapt IT.

(WATCH VIDEO: Adapt IT acquires Aquilon)

The firm’s education sector contributes 30 per cent of turnover, followed by the manufacturing sector at 37 per cent, energy at 17 per cent and the financial services sector at 16 per cent of turnover.

Profit from operations for the education segment increased to 15.1 million rand for the period from 14.6 million rand in 2013, followed by the manufacturing segment, whose profit from operations decreased to 12.4 million rand from 13 million rand in 2013.

Profit from operations for the financial services industry increased to 6.4 million rand from three million rand in 2013, while profit from operations for the energy sector was recorded at 18.8 million rand for the period.

Adapt IT’s international expansion has also been successful, with 25 per cent of its turnover deriving from foreign businesses. The group provides services to 14 African countries excluding South Africa, and an additional six countries outside of the continent.

“The strong track record in financial performance has enabled Adapt IT to continue investment in product development, infrastructure, people and operational systems that support its organic and acquisitive growth initiatives,” said Adapt IT.