BUSINESS DAY TV: Adapt IT ‘will not become an acquisition addict’
Adapt IT CEO Sbu Shabalala on the company’s half-year results, which show a 20% rise in normalised headline earnings per share.
Sbu Shabalala is Adapt IT CEO. BUSINESS DAY TV: Adapt IT shares hit a wobble today falling about 5% at one point this afternoon after the release of its interim results this morning. While turnover was 48% higher for the period, almost none of that, in fact only 4%, was due to organic growth. Operating profit rose by a third but headline earnings grew only 20% and joining me now is Sbu Shabalala, Adapt IT CEO. Sbu ... if you strip out those acquisitions it almost looks as if Adapt IT has gone ex-growth, is that a fair assumption? SBU SHABALALA: Not quite, it can’t be a fair assumption, given that the underlying business has grown by 4%. Yes, it has been a tough market. Our sectors like the education and manufacturing sectors did not give us the growth that we wanted to see. However, our underpin, which is the annuity revenue all came through and some of the sectors, that are high-growth sectors like the energy sector, got over 20% growth. The Telecommunications Expense Management so...
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