Mar 09 2021

With debt under control, Adapt IT plans a return to acquisitions

by Duncan McLeod
Sbu Shabalala...Read More
Mar 09 2021

Adapt IT debt strategy pays off, cuts debt interest by R8m

by Samuel Mungadze
Adapt IT CEO Sbu Shabalala...Read More
Mar 09 2021

Adapt IT underlines South Africa challenges in muted earnings

by Staff Writer (Business Tech)
Adapt IT on Tuesday (9 March) reported a 2% drop in revenue for the six months ended December 2020, to R707 million, due to ongoing challenging and weaker trading conditions particularly in South Africa – which remains the group’s primary market, constituting 73% of total revenue. Profit from operations, however, improved by a percent, to R79.83 million. “The Covid-19 global pandemic caused repeated shutdowns or slowdowns in certain of our client segments resulting in project volume decline and delays, with project based revenue suffering longer lead times,” it said. Earnings before interest, tax, depreciation and amortisation (EBITDA) was R128 million, marginally down from R129 million in 2019. The impacts on earnings in the current period included an increase in bonus provision of R16 million, a negative foreign exchange movement of R10 million, and an increase in the allowance for expected credit losses of R7 million resulting from client segments most impacted by Covid-19, it...Read More
Mar 01 2021

Arm wrestle on the table

by Paul Booth
The US, UK and EU will open probes into Nvidia’s $40 billion acquisition of Arm. Accenture’s continued acquisition/investment spree dominated the international ICT market last month. At home, it was Huge’s bid for Adapt IT. Key local news Skynamo acquired mSeller, a UK-based mobile field sales technology provider. Altron is looking to divest some of its non-core businesses such as Altron Document Solutions, Altron Arrow and Altron People Solutions. Ellies Electronics is liquidating its manufacturing segment within the group on viability grounds. The Huge Group has made an R800 million offer for the shares of Adapt IT, a specialised software and digitally led business solutions provider. The MTN Group will sell its 20% shareholding in Belgacom International Carrier Services SA (BICS) to Belgian state-controlled telecoms firm Proximus for R1.8 billion, and the Administrative Court of Damascus (Syria) has placed MTN Syria under a judicial guardianship. Net1 has sold its remaining...Read More
Feb 24 2021

Interim trading update – financial results to be presented via Web cast in March

by Adapt IT
JSE-listed technology company Adapt IT Holdings (Adapt IT) will be releasing its financial results for the six months ended 31 December 2020 on the JSE’s Stock Exchange News Service (SENS) on 9 March 2021 and via Web cast, at 10am (SAST) on Wednesday, 10 March 2021. In terms of the Listings Requirements of the JSE, companies are required to publish a trading statement as soon as they become reasonably certain that the financial results for the period to be reported on will differ by more than 20% from those of the previous corresponding period. Accordingly, a review by management of the financial results for the six months ended 31 December 2020, as disclosed on SENS today, has indicated that earnings per share (EPS), headline earnings per share (HEPS) and normalised HEPS (NHEPS) are all expected to increase. Sbu Shabalala, CEO of Adapt IT Holdings, commented: “I am pleased with our performance for the six months ended 31 December 2020. Our cash generation from operations was strong,...Read More
Feb 03 2021

Adapt IT names board committee to assess Huge Group bid

by Duncan McLeod
Adapt IT has formed an independent board committee to assess Huge Group’s unsolicited bid to buy the software company in an all-share deal valuing it at R795-million. Huge Group made the unexpected “general offer” to Adapt IT shareholders last week. Adapt IT has now, as required under South African takeover rules, constituted the independent board of directors, which is made up of Craig Chambers, Oliver Fortuin, Zizipho Nyanga and Catherine Koffman — the full complement of the company’s non-executive directorship. This board will advise shareholders on the Huge Group offer as required under the takeover regulations. It will also appoint an independent expert to issue a report on the offer and to express an opinion on whether the terms and conditions are fair and reasonable to Adapt IT shareholders. News of the creation of the independent board comes two days after Huge Group said it had secured the backing of more than three-quarters of its shareholders for its pursuit of Adapt IT....Read More