Adapt IT CEO Sbu Shabalala. Picture: SUNDAY TIMES
Adapt IT CEO Sbu Shabalala. Picture: SUNDAY TIMES

Listed technology firm, Adapt IT, said on Monday it expects to report a significant drop in earnings for the year to June 2019, compared with the previous year. 

In a market update, the company said it expects to report an 18% to 24% drop in earnings per share (EPS) of 49.38c to 53.26c from continuing operations compared with last year. 

Headline earnings per share from continuing operations are expected to drop 10.19% to 15.28% to between 55.60c and 58.94c.  

The picture is made worse when discontinued operations are taken into consideration, with EPS set to drop by as much as 36.3%. 

In its 2018 financial year, Adapt IT reported R129.6m in profit from turnover of R1.35bn.

Adapt IT, which provides software solutions to the education, manufacturing, energy, financial services, communications and hospitality sectors, also has operations in Mauritius, Botswana, Ireland, Kenya, Australia and New Zealand.

Adapt It said its financial results have been hit by a combination of factors including the application of new accounting standards, an impairment to some of its fixed property held for sale, foreign exchange movements and increased debt finance costs.

“Notwithstanding these circumstances, the business remains resilient, has an expanded business strategy and is well positioned for growth,” the company said.

Shares in Adapt IT ended the day 5.61% down at R5.05. 

The company expects to release its results on October 15.