Picture: ISTOCK
Picture: ISTOCK

Acquisitive information technology group Adapt IT grew its interim revenue 47% to R462m thanks to the contribution of CQS.

But investors appeared disappointed with its low organic growth, sending its share price down 8% to R13.52 after it released its results for the six months to end-December on Monday morning.

Adapt IT said that the company’s organic growth was only 4% during the period due to pressure in several industries, particularly the higher education, manufacturing, resources and banking segments.

The company reported 16% aftertax profit growth to R37m from the matching period. Headline earnings per share (HEPS) were only slightly up from 23.96c to 24.41c.

The group said it raised R84m in December by issuing shares for cash for fresh equity to support its acquisitive growth strategy.

Its latest acquisition was the EasyRoster group in August.

Adapt IT said current market conditions were challenging, but the outlook remained positive.

The company does not pay an interim dividend. Its policy is to declare a final dividend at the end of its financial year.

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