Adapt IT Holdings Limited has announced its results for the year ended 30 June 2014.
“Our growth has exceeded the ICT industry averages with 33,9% turnover growth, 55% headline earning per share growth and total shareholder returns of 332%. This has not only attracted additional institutional following, but increased shareholder confidence in Adapt IT and its development strategy,” says Adapt IT CEO, Sbu Shabalala.
The board declared its 12th ordinary dividend of 8,23 cents per share, payable in September, which represents a four times dividend cover ratio and a 48% increase on the prior year’s dividend. The Company has a policy of declaring a dividend at the end of the financial year and not at the interim reporting date.
During the period under review, Adapt IT acquired the Aquilon group of companies, which now forms part of the Adapt IT Energy sector. “This acquisition has provided entry into the Oil & Gas industry, extending our SAP solution competence, introducing supply chain management solutions and offering Adapt IT excellent future growth potential,” says Shabalala.
Adapt IT is well diversified across its four key operating segments. The Education sector contributing 30%, Manufacturing Sector 37%, Energy 17% and Financial Services Sector 16% of turnover.
The group has succeeded in its international expansion with 25% of its turnover from foreign business with a specific focus on the rest of Africa: “We provide software and services to 14 other African countries and a further 6 countries
beyond Africa and this is a key factor in diversifying risk and growing our dollar-based revenues,” says Shabalala.
He says that Adapt IT has made resolute decisions to strengthen its position as a leading IT solutions and services provider: “We have an improved structure, a more diversified portfolio and are solidly positioned to unlock further organic growth combined with additional strategic acquisitions.”
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.
Adapt IT recognises that people are imperative to ensuring success in today’s globally integrated and increasingly competitive business environment. “People represent one of Adapt IT’s most significant investments. A total of R3,4-million was invested in skills development in 2014 to ensure that the culture of training and providing opportunities for employees to grow is part of our ethos,” says Shabalala.
Furthermore, the company remains committed to the pillars of sustainability, encompassing economic, employment, social, and environmental practices and has paid particular attention to aligning with the new Broad–Based Black Economic Empowerment Codes.
Adapt IT’s core values include integrity, passion, transparency, mutual respect, solution focus and good corporate citizenship. These values serve as a guide when making business decisions and in dealings with all stakeholders, including colleagues, customers, investors, suppliers, the community and the environment.
“Our approach to sustainability is based on an holistic view of Prosperity, People and Planet (3Ps). Being a sustainable organisation means that we balance and integrate the 3Ps into our business decisions. This is key as we are cognisant of the current challenging market conditions,” says Shabalala.
Adapt IT’s Social Responsibility initiatives in 2014 included the opening of the second Adapt IT Knowledge Centre at Steve Tshwete Secondary School in Olievenhoutbosch, enriching the lives of 990 learners and 33 educators.
The Knowledge Centre will serve as a fully equipped computer lab with laptops, a printer, smart board and connectivity. This is the second Knowledge Centre opened by Adapt IT in as many years and forms part of a R1,1-million social investment drive aimed at empowering future leaders in the ICT Sector.