the g spot
How is Adapt IT coping with the fallout?
We asked CEO Sbu Shabalala whether its borrowings are under control
The shares of IT services company Adapt IT, once billed as a "mini-EOH", have suffered the contagion of association with its larger peer, with its stock losing 60% since January 31 2018. This week, it released full-year results to June, showing a 29% fall in EPS. Like EOH in its heyday, Adapt IT used its equity to buy companies. Those days are over; now it’s using debt. We asked CEO Sbu Shabalala whether its borrowings are under control.
You’ve got to see it in the context of the past financial year: making acquisitions became a bit of a challenge and the main contributing factor to that was our share price, which was not valued at levels that would have allowed us to do acquisitions we wanted...