SOFTWARE SERVICES
Adapt IT falls as project delays hinder growth
Shares in technology firm Adapt IT declined more than 5% after the company reported weaker organic growth for the half-year to December
Shares in technology firm Adapt IT declined more than 5% in early afternoon trading after the company reported weaker organic growth for the half-year to December. Although revenue rose 48% to R460.7m, it was mainly lifted by acquisitions while growth from existing businesses was 4% because of pressure in industries such as higher education and manufacturing. Adapt IT provides software services to companies operating in the manufacturing, banking, energy and resources industries as well as to higher education institutions. In 2016 the company was unable to hike its prices after the decision by universities not to increase fees. But in 2017 many have announced fee increases of about 8% and this could see Adapt IT clawing back some of the losses. It had also increased its prices charged to the universities by 8%. In the manufacturing sector, Adapt IT’s clients in the sugar industry were negatively affected by the drought experienced over the past year.
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