ADAPT IT HOLDINGS LIMITED - Restatement of Financial Information and Trading Statement

Restatement of Financial Information and Trading Statement

Adapt IT Holdings Limited
Incorporated in the Republic of South Africa
(Registration number 1998/017276/06)
Share code: ADI ISIN: ZAE000113163
(“Adapt IT”)


RESTATEMENT OF FINANCIAL INFORMATION AND TRADING STATEMENT


Restatement of Financial Information

In accounting for the business combination of AspiviaUnison Proprietary Limited for the six month
period ended 31 December 2014 (“31 December 2014 Results”) and the year ended
30 June 2015 (“30 June 2015 Results”), no fair value was placed on intangible assets other
than goodwill, as the valuation of these intangible assets in terms of IFRS 3 had not been
determined. The valuation of these intangible assets, namely Customer Relationships and
Internally Generated Software, has now been finalised.

The 31 December 2014 Results and 30 June 2015 Results have been restated retrospectively in
this regard, to increase the value of intangible assets acquired to R82.6 million and to increase
the related deferred tax liability to R23.1 million, resulting in a decrease in goodwill of
R59.5 million.

The effect of the above and the resulting amortisation costs arising thereon on the
31 December 2014 Results and 30 June 2015 Results is as follows:

                                                         As originally   Restated    Percentage
                                                              reported     amount        change
                                                               (cents)     (cents)
31 December 2014 Results
Earnings per share                                              18.57       16.81        (9.47%)
Headline earnings per share                                     18.58       16.82        (9.47%)
Net asset value per share                                      222.60      220.97        (0.74%)
Tangible net asset value per share                              32.26       32.26              -

30 June 2015 Results
Earnings per share                                              46.57       42.34        (9.08%)
Headline earnings per share                                     46.54       42.31        (9.09%)
Net asset value per share                                      252.60      248.52        (1.62%)
Tangible net asset value per share                              47.71       47.71              -

Trading Statement

In terms of the Listings Requirements of JSE Limited, 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 that of the previous corresponding period.

Accordingly, a review of the financial results for the six months ended 31 December 2015 by
management has indicated that:
-   the earnings per share (“EPS”) is expected to be between 23.15 cents and 24.83 cents,
    reflecting an increase of between 37.7% and 47.7% compared to the restated EPS of 16.81
    cents for the six months ended 31 December 2014; and
-   the headline earnings per share (“HEPS”) is expected to be between 23.12 cents and
    24.80 cents, reflecting an increase of between 37.4% and 47.4% compared to the restated
    HEPS of 16.82 cents for the six months ended 31 December 2014.

The financial information on which this trading statement is based has not been reviewed or
reported on by Adapt IT’s auditors. Adapt IT's interim financial results are expected to be released
on SENS on or about 8 February 2016.


Durban
28 January 2016

Sponsor
Merchantec Capital

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