Adapt IT to report more than 40% drop in earnings
The technology group’s results were affected by the difficult trading environment and the adoption of new accounting standards
Listed technology group Adapt IT said on Friday that it will likely report a more than 40% decrease in earnings for the six months to December 2019.
Adapt IT said it expects headline earnings per share (HEPS) to decrease by between 41.7% and 51.7%, to between 14.44c and 17.42c, compared to 29.89c per share achieved in the previous comparative period.
The Johannesburg-based company, headed by Sbu Shabalala, provides software solutions to the education, manufacturing, energy, financial services, communications and hospitality sectors, and has operations in Mauritius, Botswana, Ireland, Kenya, Australia and New Zealand.
Its earnings per share are expected to be between 14.68c and 17.68c, reflecting a decrease of between 40.9% and 50.9% compared to 29.91c per share previously.
The financial results have been affected by a combination of factors including the difficult trading environment, especially for certain segments of the business, the adoption of new accounting standards, leases in the current period, and increased finance costs, the company said.
The group’s revenue from continuing operations increased by 14% to R1.43bn in the year to end-June. Profit for the year declined to R76.3m from R122.1m in the 2018 financial year.
Shares in Adapt IT closed the week 4.62% lower on Friday at R2.48 a share.
The company is expected to release its financial results on February 24.