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ADAPT IT HOLDINGS LIMITED - CANCELLATION OF S341360 Unaudited condensed consolidated Interim Group Results for the six months ended 31 December 2013

Release Date: 07/02/2014 07:41
Code(s): ADI     PDF:  
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CANCELLATION OF S341360 Unaudited condensed consolidated Interim Group Results for the six months ended 31 December 2013

ADAPT IT HOLDINGS LIMITED
Incorporated in the Republic of South Africa
Registration number 1998/017276/06
Share code: ADI
ISIN: ZAE000113163

Unaudited condensed consolidated
INTERIM GROUP RESULTS
for the six months ended 31 December 2013

OUR BUSINESS
Adapt IT
provides a variety of specialised
turnkey IT solutions & services
SPECIALISED SERVICES
OUTSOURCING SERVICES
-   Business Intelligence (BI) Services
-   Human Capital Management Services
-   Enterprise Resource Planning (ERP) Services
-   Development and Integration Services
-   Turnkey Oil and Gas Services
-   Technology Services
-   Cloud Services
-   Training and Development Services
-   Recruitment Services

SOLUTIONS
-   Tranquillity – Process Manufacturing ERP
-   CaneLab – Weighbridge and Cane Testing Solution
-   OpSUITE – SHEQ Solution
-   HCM Spectrum – SAP(R) HCM and Payroll on the Cloud
-   ITS Integrator – Higher Education ERP
-   ITS Mobile – Real time information via mobile devices
-   Adapt IT Timetabling – CELCAT solutions
-   InfoSlips – Personalised system generated information
    and notifications
-   Strivesoft ICAS(R) – Integrated campus administration system
-   SAP IS Oil & Gas – Leading solution supporting the full
    Oil & Gas industry value chain
-   TouchStar UK – State-of-the-art fuel distribution system
-   Fuel-loc – Comprehensive secure fuel road distribution
    solution
-   Fuel-facs – Complete Terminal Automation Software

TECHNOLOGY PARTNERSHIPS
Microsoft
Adapt IT is a Microsoft
Certified Partner
offering our clients a
comprehensive range
of highly accredited
independent technical
support for Microsoft
and multi-vendor
products.
IBM
Adapt IT’s IBM partnership
enables us to develop next
generation applications for
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                    Adapt IT December 2013 Interims v1 060214
big data and analytics.
Cognitive computing provides
unprecedented insights into
opportunities, threats and
efficiencies for an organisation.

ORACLE
Adapt IT is an Oracle Gold Partner
and Independent Software Vendor
(ISV) which equips us with the latest
technology to exceed customer needs
while remaining on the leading
edge of innovation.
SAP
Adapt IT is a SAP Channel
and Services Partner, which
enables us to offer complete
cloud-based solutions,
powered by SAP in a
cost-effective model.
In addition we design,
implement and support
solutions for SAP IS Oil & Gas.

DELIVERY PLATFORMS

ON PREMISE
Services and Solutions
WEB-BASED SOLUTIONS
On premise and Hosted
CLOUD SOLUTIONS
Software as a Service
Platform as a Service

MOBILE SOLUTIONS

SECTORS
TURNOVER
BY SECTOR
2013
36,1%
Manufacturing
31,6%
Education
14,8%
Energy
17,5%
Financial services
FINANCIAL HIGHLIGHTS
39%
TURNOVER
75%
OPERATING
PROFIT

                                        Page 2
                   Adapt IT December 2013 Interims v1 060214
65%
HEPS

FINANCIAL REVIEW
Turnover for the six month period to December
2013 increased 39% to R189,6 million
(2012: R135,9 million), organic growth was 13%
and acquisitive growth was 26%.

Profit from operations increased 75% to
R20,5 million (2012: R11,7 million), representing
an improved operating profit margin of 10,8%
(2012: 8,6%). All segments of the business grew
turnover and operating profit.

Adapt IT acquired the Aquilon companies
("Aquilon") effective 1 October 2013, in line
with the acquisitive growth strategy. Aquilon
provides consulting and systems integration
for the Oil and Gas sector which now forms the
Energy segment of Adapt IT. Aquilon's results, for
the three months, are included in these interim
results and contributed R28,0 million in turnover
and R7,9 million to profit from operations. Refer
to the business combination note 8 on page 10.

Interim earnings per share (EPS) improved by
64% to 13,71 cents per share (cps) from 8,36 cps
and interim headline EPS (HEPS) improved by
65% to 13,74 cps from 8,35 cps.
Ordinary dividend number 11, in respect of the
year ended 30 June 2013, of 5,56 cents per
share, being a four times cover ratio, was paid to
shareholders on 16 September 2013. Our policy
is to consider a dividend after the financial year
end and not at the interim reporting date.

STRATEGY

Adapt IT continues to realise synergies between
its specialised software businesses to yield higher
organic growth and margins, with increasing
focus on foreign markets, especially other
African countries. Further strategic, synergistic
and earnings enhancing software business
acquisitions will be pursued.
Increased focus on transformation is being
prioritised to ensure alignment with the new
Broad-based Black Economic Empowerment
Codes.
OUTLOOK
Our outlook remains positive as we continue
to build on the strong foundation we have
established to create a sizeable leading ICT
business which delivers above sector average
growth and returns.
BOARD
There have been no changes to the board during
the reporting period.
APPRECIATION
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                     Adapt IT December 2013 Interims v1 060214
We thank our customers, partners and service
providers for their continued support and
members of the board and Adapt IT Group
staff for their dedication which underpins our
success.
On behalf of the board

Craig Chambers                              Sbu Shabalala
Independent                       Chief Executive Officer
non-executive Chairman
6 February 2014
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
                                                            Unaudited      Unaudited
      Audited
                                                             6 months       6 months
         Year
                                                                   ended       ended
        ended        Year-
                                                                  31 Dec      31 Dec
      30 June      on-year
                                                                    2013        2012
         2013     variance
                                                 Note              R'000       R'000
        R'000             %
Revenue                                                          190 892     140 123
      306 035            36
Turnover                                                         189 580     135 914
      303 401            39
Cost of sales                                               (109 040)       (79 425)
    (171 782)            37

Gross profit                                                      80 540      56 489
      131 619         43
Administrative, selling and other costs                      (60 267)       (46 001)
    (102 735)         31
Sundry revenue                                                       219       1 190
          515       (82)
Profit from operations                                            20 492      11 678
       29 399          75
Finance income                                      3              1 094       3 018
        2 118       (64)
Finance costs                                                      (384)       (416)
        (785)        (8)

Profit before taxation                                            21 202      14 280
       30 732        48
Income tax expense                                               (6 208)     (5 224)
      (6 642)        19
Profit for the period attributable to
ordinary shareholders                                             14 994       9 056
       24 090         66
Other comprehensive income                                           514         259
        2 225         98
Exchange differences arising from translation
of foreign operations                                                514        259
          623         98
Revaluation of land and building                                       –          –
        2 225          –
                                     Page 4
                    Adapt IT December 2013 Interims v1 060214
Income tax effect                                                       –             –
        (623)         –

Total comprehensive income                                         15 508          9 315
       26 315        66

Headline earnings:
Profit attributable to ordinary shareholders                       14 994          9 056
       24 090        66
Loss/(profit) on sale of property and equipment                        38            (9)
           21         –
Headline earnings                                                  15 032          9 047
       24 111        66
Number of ordinary shares in issue                (000)           111 499        108 226
      108 226         3
Weighted average number of
ordinary shares in issue                          (000)           109 395        108 346
      108 286         1
Basic earnings per share                      (cents)               13,71           8,36
        22,25        64
Headline earnings per share                   (cents)               13,74           8,35
        22,27        65
Fully diluted basic earnings per share        (cents)               13,71           8,36
        22,25        64
Fully diluted headline earnings per share     (cents)               13,74           8,35
        22,27        65
Dividend per share                            (cents)                5,56           4,84
         4,84        15

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

                                                                  Unaudited Unaudited
  Audited
                                                                   6 months     6 months
     Year
                                                                      ended        ended
    ended
                                                                     31 Dec       31 Dec
  30 June
                                                                       2013         2012
     2013
                                                          Notes       R'000        R'000
    R'000
ASSETS
Non-current assets                                                  185 442       84 949
   86 684
Property and equipment                                               28 333       23 881
   28 351
Intangible assets                                                     6 341        6 187
    5 772
Goodwill                                                      5     133 487       38 010
   38 010
Deferred taxation asset                                              17 281       16 871
   14 551
Current assets                                                      177 815      135 725
   92 039
Trade and other receivables                                         148 654      112 428
   64 039
Current tax receivable                                                      –      2 640
    5 307
Cash and cash equivalents                                            29 161       20 657
   22 693
Total assets                                                        363 257      220 674
                                     Page 5
                    Adapt IT December 2013 Interims v1 060214
  178 723
EQUITY AND LIABILITIES
Equity                                                            161 725       75 256
   92 234
Share capital                                                          11           11
        11
Share premium                                                      23 926       14 626
   14 626
Other capital reserves                                   8         52 000        1 300
    1 300
Foreign currency translation reserve                                1 642          764
    1 128
Revaluation reserve                                                 1 602            -
    1 602
Retained earnings                                                  82 544       58 555
   73 567
Non-current liabilities                                            30 894       13 323
    3 747
Interest-bearing borrowings                              6         27 389       10 664
         –
Deferred taxation liability                                         3 505        2 659
    3 747
Current liabilities                                               170 638      132 095
   82 742
Trade and other payables                                           44 091       28 852
   18 550
Provisions                                                         15 416        7 948
   14 200
Deferred income                                          7         80 061       76 425
   47 979
Current tax payable                                                 5 938          529
         –
Current portion of interest-bearing borrowings           6         16 271       12 854
       643
Current portion of non-interest-bearing borrowings                  8 861        1 770
    1 370
Bank overdraft                                                             –     3 717
         –

Total equity and liabilities                                      363 257      220 674
  178 723
Net asset value per share                               (cents)    145,05        69,54
    85,22
Net tangible asset value per share                      (cents)      7,28        15,57
    34,79
Liquidity ratio                                         (times)      1,04         1,03
     1,11
Solvency ratio                                          (times)      1,80         1,52
     2,07
Market price per share
   Close                                                (cents)       490          144
       235
   High                                                 (cents)       501          158
       290
   Low                                                  (cents)       231          102
       102
Capital expenditure for the period                      (R'000)     3 245        9 707
   14 480
Capital commitments                                     (R'000)     4 038        2 887
    5 283
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY


          Foreign
         currency
                                                                   Other
                                     Page 6
                            Adapt IT December 2013 Interims v1 060214
Re-           trans-
                                               Share        Share        capital
valuation                 lation      Retained          Total
                                             capital      premium       reserves
reserve             reserve         earnings         equity
                                       Notes   R'000        R'000          R'000
R'000               R'000            R'000         R'000
Balance at 30 June 2012                              11        14 920          –
  –           505        54 725                    70 161
Total comprehensive income
  for the period                                      –            –           –
  –           259          9 056                    9 315
Profit for the period                                 –            –           –
  –              –         9 056                    9 056
Other comprehensive income                            –            –           –
  –            259             –                      259
for the period
Net repurchase of shares                              –         (294)          –
  –              –             –                    (294)
Issue of shares for
  business combinations                               –            –       1 300
  –              –             –                    1 300
Dividend paid                                         –            –           –
  –              –       (5 226)                  (5 226)

Balance at 31 December 2012                          11        14 626      1 300
  –           764         58 555                   75 256

Balance at 30 June 2013                              11        14 626      1 300
1 602         1 128                  73 567          92 234
Total comprehensive
  income for the period                               –            –           –
  –           514                  14 994          15 508
Profit for the period                                 –            –           –
  –             –                  14 994          14 994
Other comprehensive
  income for the period                               –            –           –
  –           514                       –             514
Issue of treasury shares
  for business combination                            –         1 300    (1 300)
  –             –                       –                  –
Shares to be issued                           8       –            –      52 000
  –             –                       –          52 000
Issue of shares for
  business combination                        8       –         8 000          –
  –             –                       –           8 000
Shares issued during the period                       –         1 753          –
  –             –               –                   1 753
Issue of treasury shares                              –         6 247          –
  –             –               –                   6 247
Dividend paid                                         –            –           –
  –                   –            (6 017)        (6 017)
Balance at 31 December 2013                          11        23 926     52 000
1 602         1 642                   82 544        161 725
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
                                                                         Unaudited
Unaudited       Audited
                                                                            31 Dec   31
Dec       30 June
                                                  Page 7
                   Adapt IT December 2013 Interims v1 060214
                                                                    2013
2012       2013
                                                        Notes      R'000
R'000      R'000
OPERATING ACTIVITIES
Cash generated from operations                                     7 032
149     36 662
Finance income                                              3      1 094
3 018      2 118
Finance costs                                                      (384)
(416)      (785)
Dividends paid                                                   (6 017)
(5 226)    (5 249)
Taxation paid                                                      (671)
(9 652)   (11 481)
Net cash flow from/(utilised in) operating activities              1 054
(12 127)     21 265
INVESTING ACTIVITIES
Property and equipment acquired                                  (1 828)
(3 991)    (7 902)
Intangible assets acquired and developed                         (1 417)
(5 716)    (6 578)
Proceeds on disposal of property and equipment                         –
9         59
Net cash flow on acquisition of subsidiary                  8   (32 207)
(7 165)    (7 165)

Net cash flows from investment activities                       (35 452)
(16 863)   (21 586)
FINANCING ACTIVITIES
Proceeds from borrowings                                          43 660
23 917     28 917
Repayment of borrowings                                          (3 308)
(2 602)   (30 878)
Share repurchases                                                      –
(294)      (294)

Net cash inflow/(outflow) from financing activities               40 352
21 021    (2 255)
Net increase/(decrease) in cash resources                          5 954
(7 969)    (2 576)
Exchange differences on translation                                  514
259        619
Cash and cash equivalents at beginning of period                  22 693
24 650     24 650

Cash and cash equivalents at end of period                        29 161
16 940     22 693
NOTES TO THE FINANCIAL STATEMENTS
1.  BASIS OF PREPARATION AND CORPORATE INFORMATION
    The unaudited condensed consolidated interim financial statements of the
Group for the six months
    ended 31 December 2013 were prepared in accordance with IAS 34 Interim
Financial Reporting, SAICA
    Financial Reporting Guides as issued by the Accounting Practices Committee
and the requirements of
    the Companies Act No 71 of 2008 of South Africa as amended, and the Listings
Requirements of the JSE Limited.
    The accounting policies applied in the preparation of these unaudited
condensed interim consolidated financial
    statements are in accordance with International Financial Reporting
Standards and are consistent with those
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                     Adapt IT December 2013 Interims v1 060214
     applied in the annual financial statements for the year ended 30 June 2013.

    The interim results have not been audited or reviewed by the Group auditors,
and have been prepared
    under the supervision of Tiffany Dunsdon, CA (SA), Finance Director of Adapt
IT Holdings Limited.
    The directors take full responsibility for the preparation of these
unaudited
    condensed consolidated interim financial statements.
2.  SUBSEQUENT   EVENTS
    No matters   have occurred between the reporting date and the date of approval
of the interim   financial
    statements   which would have a material effect on these financial statements.
                              Unaudited   Unaudited      Audited
                                 31 Dec      31 Dec      30 June
                                   2013        2012         2013
                                  R'000       R'000        R'000
3.    FINANCE INCOME
      Imputed interest              571        2 531       1 238
      Bank interest                 523          487         880
      Total finance income        1 094        3 018       2 118
4.   DIVIDENDS
     Ordinary dividend number 11 of 5,56 cents per share was paid to
shareholders on 16 September 2013.
     It is Group policy to consider declaration of dividends at the end of the
financial year and not at the
     interim reporting date.

                                                 Unaudited      Unaudited   Audited
                                                    31 Dec         31 Dec   30 June
                                                      2013           2012      2013
                                                     R'000          R'000     R'000
5.    GOODWILL
      Carrying amount at beginning of period        38 010         25 658    25 658
      Acquisition of Swicon360 (Pty) Ltd                 –         12 352    12 352
      Acquisition of Aquilon companies              95 477              –         –
      Carrying amount at end of period             133 487         38 010    38 010
      Comprising:
      Cost                                         133 487         38 010    38 010
      Goodwill is allocated as follows:
      – Adapt IT (Pty) Ltd                             25 599      10 349    10 349
      – ApplyIT (Pty) Ltd                                  59          59        59
      – BI Planning Services (Pty) Ltd                      –      15 250    15 250
      – Swicon360 (Pty) Ltd                            12 352      12 352    12 352
      – Aquilon companies                              95 477           –         –
      Total                                        133 487         38 010    38 010


    On 1 July 2013, BI Planning Services (Pty) Ltd was amalgamated into Adapt IT
(Pty) Ltd in accordance
    with the provisions of Section 113, 115 and 116 of the Companies Act, 2008,
as amended. Accordingly
    the goodwill of BI Planning Services (Pty) Ltd was transferred to Adapt IT
(Pty) Ltd.
    The Group tests goodwill for impairment. As at 31 December 2013, the
carrying amount of goodwill was
    considered not to require impairment.
    The recoverable amount of goodwill has been determined based on a value in
use calculation using
    cash flow projections from financial forecasts approved by senior management
                                     Page 9
                    Adapt IT December 2013 Interims v1 060214
covering a five-year
    period. Cash flow projections take into account past experience and external
sources of information.The
    valuation method used is consistent with the prior year. There have been no
accumulated impairment
    losses recognised to date.
     The key assumptions used in the testing of goodwill are:

    – Discount rate of 12% (2013: 12%) (weighted average cost of capital); and
    – Projected cash flows for the five years based on a 5% (2013: 5%) growth
rate.
                                          Unaudited     Unaudited   Audited
                                             31 Dec        31 Dec   30 June
                                               2013          2012      2013
                                              R'000         R'000     R'000
6.    INTEREST-BEARING BORROWINGS
      Non-current borrowings                 27 389        10 664         –
      – Investec Private Bank Limited        27 389        10 664         –
      Current borrowings                     16 271        12 854       643
      – Investec Private Bank Limited        16 271        11 612         –
      – IBM Global Finance                        –         1 242       643
      Total                                  43 660        23 518       643

    Further facilities from Investec Private Bank Limited were obtained to fund
the acquisition of the Aquilon
    companies. They are secured by a mortgage bond over fixed property, 100% of
the shares held in Adapt
    IT (Pty) Ltd and cession of book debts held by Adapt IT Holdings Limited and
its subsidiaries. The interest
    rates range from 8,5% to 9% per year at the reporting date.

     Excess cash resources are used from time to time to reduce the facilities.
                              Unaudited     Unaudited     Audited
                                 31 Dec        31 Dec     30 June
                                   2013          2012        2013
                                  R'000         R'000       R'000
7.    DEFERRED INCOME
      Education segment          66 117        60 520      32 779
      Manufacturing segment      12 323        15 280      15 200
      Energy segment              1 151             –           –
      Financial segment             470           625           –
      Total                      80 061        76 425      47 979


    The Education segment relates to annual maintenance fees invoiced in advance
for the year and
    usually collected end of January and February, the start of the education
year.
    Manufacturing sector includes long-term software projects in progress,
ongoing upgrades and other
    software-related projects for clients.

8. BUSINESS COMBINATIONS
   8.1   Acquisition of subsidiary

         On 1 October 2013, the Group acquired the entire issued share capital
of Aquilon (Pty) Ltd, Aquilon
         Evolution Holdings (Pty) Ltd and Aquilon Evolution Consulting (Pty) Ltd
(the Aquilon companies),
         and 40% of the issued shares in Fuel-Loc (Pty) Ltd. The Aquilon
companies and Fuel-Loc (Pty) Ltd are
                                     Page 10
                    Adapt IT December 2013 Interims v1 060214
         South African registered companies.
         The Aquilon companies are specialist SAP consultancies, which design,
implement and support
         SAP(R) IS-Oil implementations throughout South Africa. They provide SAP
services to six of the major oil
         companies trading in South Africa and globally.
         The purchase consideration consists of R38,0 million cash paid on 29
November 2013 and
         R8,0 million shares issued in December 2013. A further R52,0 million is
contingent upon the actual
         achievement of specified profit warranties (profit warranties) over a
33-month period (earn-out
         portion).
         The earn-out portion of a maximum of R52,0 million shall be settled via
the issue of shares upon the
         attainment of the profit warranties.
        The profit warranties are as follows:
         - R18,3 million profit after tax for the period 1 October 2013 to 30
June 2014 (2014 performance
           warranty period). Should such profit after tax be achieved, shares to
the value of R16,0 million shall
           be issued;

         - R32,0 million profit after tax for the period 1 July 2014 to 30 June
2015 (2015 performance warranty
           period). Should such profit after tax be achieved, shares to the
value of R18,0 million shall be
           issued; and

         - R38,4 million profit after tax for the period 1 July 2015 to 30 June
2016 (2016 performance warranty
           period). Should such profit after tax be achieved, shares to the
value of R18,0 million shall be
           issued.

         The shares to be issued to settle the earn-out portion shall be issued
within 60 days after the end of
         the 2014 performance warranty period, 2015 performance warranty period
and 2016 performance
         warranty period respectively and shall be reduced pro-rata to the
extent that such profit warranties
         are not attained.
         The latest financial projections for the Aquilon companies indicate
that the profit warranties will
         be achieved and accordingly the R52,0 million shares to be issued are
disclosed as other capital
         reserves, resulting in a maximum purchase consideration of R98,0
million.
         Shares are specifically issued at a volume weighted average traded
price of 352 cents.
         The fair value of the net assets acquired amounted to R2,5 million,
resulting in goodwill of
         R95,5 million at acquisition.The consideration paid for the combination
effectively included amounts
         in relation to the benefit of the expected synergies, revenue growth,
new market penetration and
         future market development.
         The acquisition of Aquilon companies provides Adapt IT with an entry
into specialised areas within
                                     Page 11
                    Adapt IT December 2013 Interims v1 060214
         the Oil and Gas sector. The strategic acquisition assists Adapt IT to
expand into the growing Energy
         sector in Africa, as well as extend its local reach into the Western
Cape, and bolsters its SAP solutions
         expertise.



   The fair values of the identifiable net assets and liabilities of Aquilon
companies as at the date of
   acquisition were:

Fair value

recognised
     on

acquisition
  R'000
Assets
Property and equipment
    210
Intangible assets
     17
Deferred taxation
  1 098
Trade and other receivable
 23 350
Cash and cash equivalents
  5 793
Total assets
 30 468
Liabilities
Current portion of non-interest-bearing borrowings (previous shareholders)
 10 156
Trade and other payables
 11 991
Provisions
  1 964
Current tax payable
  3 834
Total liabilities
 27 945
Total identifiable net assets
  2 523
Goodwill arising on acquisition
 95 477
Fair value of consideration transferred
 98 000
Settled in shares
  8 000
Shares to be issued
 52 000
Settled in cash
 38 000
Cash outflow on acquisition:
Net cash acquired with the subsidiary
  5 793
Cash paid
(38 000)
Net cash outflow on acquisition
(32 207)
    Fair value of the assets acquired approximates their carrying value at the
acquisition date.
                                     Page 12
                      Adapt IT December 2013 Interims v1 060214
    From the date of acquisition, the Aquilon companies have contributed R5,1
million to the profit after
    tax and R28,0 million to the turnover of the Group.
    Acquired receivables represent the gross contractual amounts which
approximate fair value and
    which are further estimated to be fully recoverable.

       Goodwill recognised is not deductible for tax purposes.
    Acquisition related costs of R1,9 million have been expensed and are
included in administrative,
    selling and other costs on the statement of comprehensive income.
    Current portion of non-interest bearing borrowings relates to dividends due
to the previous
    shareholders payable by the end of March 2014.

9. SEGMENT ANALYSIS
   For management purposes, the Group is organised into the following segments:

   –    Education – Adapt IT Pretoria;
   –    Manufacturing – Adapt IT Durban, ApplyIT (Pty) Ltd and Swicon360 (Pty) Ltd;
   –    Financial Services – Adapt IT Johannesburg;
   –    Energy – the Aquilon companies; and
   –    Other – includes once-off transaction costs.

   Management monitors the operating results of its business units separately
for the purpose of making
   decisions about resource allocation and performance assessment. Monthly
management meetings
   are held to evaluate segment performance against budget and forecast.

   The following table presents revenue and profit information regarding the
Group's operating segments
   for the six months ended 31 December 2013 and 31 December 2012, respectively:

                                             Edu-     Manu-      Financial
                                           cation facturing       Services   Energy
Other         Total
                                            R'000    R'000           R'000    R'000
R'000         R'000
Six months ended 31 December 2013
Turnover                                   59 989    68 381         33 256   27 953
    –    189 579
Segment profit/(loss) from operations       8 013    3 414           3 416    7 916
(2 268)     20 491
Operating profit margin                       13%       5%             10%      28%
             11%
Six months ended 31 December 2012
Turnover                                   55 569    56 977         23 368        –
    –    135 914
Segment profit from operations              6 363    2 722           2 450        –
  143     11 678
Net finance income                            754    1 722             126        –
    –      2 602
Segment profit before tax                   7 117    4 444           2 576        –
  143     14 280
Operating profit margin                       11%       5%             10%
              9%
The following table presents segment assets and liabilities of the Group's
operating segments as at
31 December 2013 and 31 December 2012, respectively:
                                     Page 13
                     Adapt IT December 2013 Interims v1 060214
                                          Edu-        Manu-   Financial
                                        cation   facturing     Services    Energy
 Other     Total
                                         R'000       R'000        R'000     R'000
 R'000     R'000
Six months ended 31 December 2013
Total assets                           126 606      71 901       28 072   135 405
 1 273   363 257
Total liabilities                       94 176      69 473        4 905    30 266
 2 712   201 532
Six months ended 31 December 2012
Total assets                           120 449      74 166       25 386         –
   674   220 674
Total liabilities                       77 851      62 557        4 552         –
   458   145 418
Amounts previously included under adjustments and eliminations in the prior
year, relating mainly
to goodwill, have been reallocated to the related segment in the tables above in
order to allow
for a more meaningful analysis.
CORPORATE INFORMATION
ADAPT IT HOLDINGS LIMITED
Incorporated in the Republic of South Africa
Registration number 1998/017276/06
Share code: ADI
ISIN: ZAE000113163
COMPANY SECRETARY
Statucor (Pty) Ltd
22 Wellington Road
Parktown
2193
REGISTERED OFFICE
5 Rydall Vale Office Park
Rydall Vale Crescent
La Lucia Ridge
4019
KwaZulu-Natal
South Africa
DIRECTORS
Craig Chambers* (Chairman)
Sbu Shabalala (Chief Executive Officer)
Tiffany Dunsdon (Financial Director)
Bongiwe Ntuli*
Thembisa Dingaan*
Oliver D Fortuin*
*independent non-executive director
TRANSFER SECRETARY
Computershare Investor Services (Pty) Ltd
PO Box 61051, Marshalltown, 2107
T +27 (0) 11 370 5000
F +27 (0) 11 688 5200
AUDITORS
Deloitte & Touche
CORPORATE SPONSOR
Merchantec Capital
2nd Floor, Corner North Wing
Hyde Park Office Suites
Corner 6th Road and Jan Smuts Avenue
                                       Page 14
                      Adapt IT December 2013 Interims v1 060214
Hyde Park
Johannesburg
2024
CORPORATE BANKERS
The Standard Bank of South Africa Limited
ABSA Bank
LEGAL REPRESENTATIVES
Shepstone & Wylie
Read Hope Phillips Thomas Cadman Inc.
ADAPT IT WEBSITE
www.adaptit.co.za

REGIONAL OFFICES
Durban
5 Rydall Vale Office Park
Rydall Vale Crescent
La Lucia Ridge
4019
KwaZulu-Natal
T +27 (0) 31 514 7300
F +27 (0) 86 602 8961

Johannesburg
The Braes
Adapt IT House
I93 Bryanston Drive
Bryanston
Johannesburg

T +27 (0) 11 460 5300
F +27 (0) 11 460 5301
Pretoria
50 Bushbuck Lane
Monument Park
Pretoria
0181

T +27 (0) 12 425 5600
F +27 (0) 12 460 5377


Cape Town
21 Dreyer Street
Sunclare Building
2nd floor
Cape Town
7700
T +27 (0) 21 200 0480
adapt IT
www.adaptit.co.za




                                      Page 15

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