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On Wednesday evening, the tech sector was jolted by a surprise R800 million takeover bid for the local software group Adapt IT. South African telecom company Huge Group is offering to exchange each Adapt IT share for 0.9 Huge share, which works out to a value of 552c per share – 33% more than the share’s average price over the past month. In response, Adapt IT issued a neutral statement on Thursday, saying Huge’s offer was "unsolicited" – indicating that the board won’t necessarily support the takeover. Adapt IT’s share price jumped by 13% in reaction to the bid, while Huge declined by almost a percent on Thursday – indicating that the market believes the bid may go ahead, says Chantal Marx, head of investment research and content at FNB Wealth and Investments. But she believes that the bid is opportunistic, given that Adapt’s share price has lost more than 70% of its value over the past four years, leaving the company undervalued, on a price earnings ratio of below 8 times. Part of...Read More

ADAPT IT HOLDINGS LIMITED Incorporated in the Republic of South Africa (Registration number: 1998/017276/06) Share code: ADI ISIN: ZAE000113163 (“Adapt IT” or “the Company”)...Read More

JSE-listed Adapt IT, a provider of specialised software and digitally-led business solutions, on Monday (26 October) reported a 3% rise in revenue for the year ended June 2020, to R1.48 billion, comprising muted organic growth of -2% and growth from acquisitions of 5%. Headline earnings per share (HEPS) increased by 29% to 72.58 cents per share, and earnings before interest, tax, depreciation and amortisation (EBITDA) improved by 9% to R250 million. “The tough trading conditions in South Africa were a catalyst for Adapt IT to drive operational improvements through significant cost containment measures in segments most impacted by Covid-19. Most operational efficiency projects have been completed, which will result in cost savings in future financial periods,” Adapt IT said. The board decided to suspend the payment of dividends so as to preserve cash amid the fallout from the Covid-19 pandemic. “I am pleased to report that in a year dominated by global macroeconomic challenges and the...Read More

JSE-listed software services firm Adapt IT says it prioritised the reduction of borrowing and preserving cash for the financial year ended 30 June, and as a result, no dividend was declared. The company says it has shown resilience in a year most businesses were affected by the COVID-19 pandemic and other macro-economic factors. Adapt IT says the tough trading conditions in SA were a catalyst for it to drive operational improvements through significant cost reduction and containment measures in segments most impacted by COVID-19. It says most operational efficiency projects have been completed, which will result in cost savings in future financial periods. “The business cost structures where the market landscape has changed have been right-sized for the current market,” says the organisation. Adapt IT derives almost three-quarters of its revenue from SA. Turning to its debt management strategy, it says net gearing was reduced to 43% from 66%, and all debt covenants were met at 30...Read More

Group expects a bump from education and telecoms sectors as pandemic boosts demand for online learning and services related to working from home Technology group Adapt IT, which provides software to many different industries, has opted to hold on to its final dividend as Covid-19 batters the SA economy, particularly manufacturing and tourism. The group expects a bump from the education and telecoms sectors as the pandemic boosts demand for online learning and services related to working from home, but says it also wants to be conservative with its cash. The Johannesburg-based company, which provides software solutions to the education, manufacturing, energy, financial services, communications and hospitality sectors, said on Monday that the pandemic had a mixed effect on demand during its year to end-June. Revenue increased 3% to R1.48bn to end-June, before accounting changes that brought leases on to the balance sheet, while earnings before interest, taxation, depreciation and...Read More

Software services group Adapt IT on Monday published full-year financial results to 30 June 2020 that showed remarkable resilience in the face of the Covid-19 pandemic and lockdown....Read More