Wrap Text
Unaudited Condensed Consolidated Interim Group Results for the six months ended 31 December 2016
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 or the Group)
Adapt IT unaudited condensed consolidated
INTERIM GROUP RESULTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2016
OVERVIEW
Adapt IT is an innovative information technology (IT) services and solutions provider, delivering a
variety of specialised software solutions and services to the Manufacturing, Education, Financial
Services and Energy sectors across 40 countries.
Manufacturing
27%
- ERP Implementation
- Human Capital Management Services
- Development and Integration Services
- SHEQ Solutions
- Operational Management Solutions
- Rostering Optimisation Software Services
Education
18%
- Education Management Systems
- Development and Integration Services
- Support Services
Energy
20%
- Business Advisory Services
- Technical Advisory Services
- SAP IS-OIL
- Fuel-FACS
- Utilities Management
Financial Services
35%
- Audit and Risk Management Software
- Business Intelligence and Analytics
- Project Management
- Recruitment Services
OUR BUSINESS
Adapt IT has formed strategic partnerships with the world's leading technology and business
software providers in order to provide customers with robust, reliable and enduring solutions and
services. These uniquely tailored solutions set Adapt IT apart and power the day-to-day efficiencies
within our clients' businesses in the following areas:
Consulting
- Business Consulting
Guiding leading enterprises to achieve business transformation
- IT Consulting
Leveraging technologies to improve business efficiencies
- Innovation
Applying new technology solutions to exceed client requirements
Software
- Web-based Solutions
Efficiently developed Cloud-ready proprietary software solutions
- On Premise
Leveraging our clients' existing technology infrastructure
- Cloud Solutions
Providing Software as a Service for maximised efficiency
- Mobile Solutions
Ensuring accessibility to solutions from anywhere
Support
- SLA Management
Providing both remote and on-site support, either 24/7, fixed hours or block hours, based on
customer's needs and requirements
- ITIL Certified
Support team processes are ITIL certified
GEOGRAPHIC TURNOVER
73% 15% 6% 4% 1% 1%
South Africa Other African countries The Americas Australasia Europe Asia
FINANCIAL HIGHLIGHTS
48% 44% 20%
Turnover EBITDA Normalised HEPS
FINANCIAL REVIEW
Turnover for the six months ended 31 December 2016 increased 48% to
R460,7 million (2015: R310,4 million), organic growth was 4% and
acquisitive growth was 44%. Organic growth was muted due to ongoing
pressure in several industries, particularly the higher education,
manufacturing, resources and banking segments. Acquisitive growth
was boosted in the period by the inclusion of the CQS group (CQS)
which was consolidated with effect from 31 December 2015 and had
no contribution to turnover in the prior interim results. Earnings before
interest, tax, depreciation and amortisation (EBITDA) increased 44% to
R89,9 million (2015: R62,3 million). Operating profit increased 32% to
R69,5 million (2015: R52,5 million).
Adapt IT has disclosed normalised headline earnings per share (HEPS)
for the first time as a result of the high non-cash expenses in terms of
International Financial Reporting Standards (IFRS) due to our acquisitions.
Non-cash acquisition-related expenses are mainly amortisation of
intangible assets (such as internally developed software and customer
relationships) and notional interest on deferred purchase considerations,
which is based on the achievement of profit warranties.
Non-cash amortisation costs of R13,5 million and notional interest costs of
R5,3 million, which totalled R18,8 million (2015: R7,8 million) were expensed
for the half year. As acquisitions of this nature will be an ongoing hallmark
of Adapt IT in line with its growth strategy, normalised headline earnings
will be reported on an ongoing basis, as we believe this will add value to
the reader. Normalised HEPS grew 20% to 34,74 cents (2015: 28,89 cents).
By comparison, HEPS grew 2% after taking into account the non-cash
expenses described above, together with higher bank interest paid on
the higher level of borrowings to fund the CQS acquisition.
Cash utilised in operations was primarily affected by an increase in trade
receivables due by slow payments to debtors due to market conditions. In December
2016, Adapt IT utilised the general authority granted by its shareholders
at the latest Annual General Meeting to issue shares for cash, raising
R84,0 million of fresh equity in support of its acquisitive growth strategy.
These funds have been temporarily offset against borrowings until they
are applied in due course.
Ordinary dividend number 14, in respect of the year ended 30 June 2016,
of 13,40 cents per share, on a four times dividend cover ratio, was paid to
shareholders on 19 September 2016. It is our policy to declare a dividend
after financial year-end and not at the interim reporting date.
ACQUISITION
Adapt IT Proprietary Limited acquired the EasyRoster group of companies
(EasyRoster) effective 1 August 2016, in line with our acquisitive growth
strategy. EasyRoster is the leading provider of rostering optimisation
software services to staffing solutions businesses in South Africa and
the rest of Africa. EasyRoster is a software-as-a-service (SaaS) solutions
business, and bolsters the manufacturing services segment of Adapt IT.
Adapt IT is pleased to welcome another very successful team to the
Group. EasyRoster's results for the five months are included in these interim
results.
POST BALANCE SHEET EVENTS
No matters have occurred between the reporting date and the date of
approval of the interim financial statements, which would have had a
material effect on these financial statements.
STRATEGY
Adapt IT continues to realise synergies between its specialised software
businesses. Further strategic business acquisitions will be pursued.
OUTLOOK
Whilst the current market conditions are challenging, our outlook remains
positive as we continue to build on the strong, well-diversified foundation
that we have established to create a sizeable, leading ICT business that
delivers above sector average growth and returns.
BOARD
Nombali Mbambo was appointed to the board as Chief Financial Officer
on 18 August 2016.Tiffany Dunsdon reverted to being Commercial Director
for the Group and Managing Director of International Operations.
APPRECIATION
We thank our customers, partners and service providers for their continued
support and members of the board and Adapt IT Group employees for
their dedication, which underpins our success.
On behalf of the board,
Craig Chambers Sbu Shabalala
Independent non-executive Chairman Chief Executive Officer
13 February 2017
CONDENSED CONSOLIDATED STATEMENT OF
PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
Unaudited Unaudited Audited
6 months 6 months Year
ended ended ended Period-
31 Dec 31 Dec 30 June on-period
2016 2015 2016 variance
Notes R'000 R'000 R'000 %
Revenue 462 985 314 608 803 338 47
Turnover 460 691 310 438 796 178 48
Cost of sales (198 314) (143 826) (343 573) 38
Gross profit 262 377 166 612 452 605 57
Operating expenses (172 508) (104 359) (287 465) 65
Earnings before interest, tax, depreciation
and amortisation (EBITDA) 89 869 62 253 165 140 44
Depreciation and amortisation (6 892) (5 354) (11 667) 29
Amortisation of intangible assets acquired (13 501) (4 390) (17 084) 208
Profit from operations 69 476 52 509 136 389 32
Finance income 2 2 294 4 170 7 159 (45)
Finance costs 3 (15 292) (7 864) (22 298) 94
Share of profits of equity accounted
investment after tax 829 460 1 636 80
Profit before taxation 57 307 49 275 122 886 16
Income tax expense (20 251) (17 567) (41 929) 15
Profit for the period 37 056 31 708 80 957 17
Attributable to:
Equity holders of the parent 35 489 31 708 78 357 12
Non-controlling interests 1 567 - 2 600 -
Items that may be reclassified subsequently
to profit and loss (665) 3 841 789
Exchange differences arising from translation
of foreign operations (665) 3 841 789
Total comprehensive income 36 391 35 549 81 746 2
Attributable to:
Equity holders of the parent 34 824 35 549 79 146 (2)
Non-controlling interests 1 567 - 2 600
Headline earnings:
Profit attributable to ordinary shareholders 35 489 31 708 78 357 12
Loss/(profit) on sale of property and equipment 26 (35) (98) (174)
Headline earnings 35 515 31 673 78 259 12
Normalised headline earnings 4 50 535 38 186 97 481 32
Number of ordinary shares in issue (000) 152 355 139 875 140 062 9
Weighted average number of
ordinary shares in issue (000) 145 476 132 178 136 016 10
Diluted average number of
ordinary shares in issue (000) 145 476 132 178 141 752 10
Basic earnings per share (cents) 24,40 23,99 57,61 2
Diluted basic earnings per share (cents) 24,40 23,99 55,28 2
Headline earnings per share (cents) 24,41 23,96 57,54 2
Diluted headline earnings per share (cents) 24,41 23,96 55,21 2
Normalised headline earnings per share (cents) 4 34,74 28,89 71,67 20
Dividend per share (cents) 13,40 10,90 10,90 23
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Unaudited Unaudited Audited
6 months 6 months Year
ended ended ended
31 Dec 31 Dec 30 June
2016 2015* 2016
Notes R'000 R'000 R'000
ASSETS
Non-current assets 771 574 707 489 705 321
Property and equipment 37 120 36 287 37 367
Intangible assets 189 123 170 437 170 032
Goodwill 6 520 911 472 515 472 515
Equity accounted investment 2 633 628 1 804
Deferred taxation asset 21 787 27 622 23 603
Current assets 377 959 340 293 259 556
Trade and other receivables 284 681 233 343 170 600
Asset held for sale - 9 733 -
Current tax receivable 6 854 1 624 11 232
Cash and cash equivalents 86 424 95 593 77 724
Total assets 1 149 533 1 047 782 964 877
EQUITY AND LIABILITIES
Equity
Share capital 15 14 14
Share premium 319 922 198 615 200 831
Other capital reserves 32 580 13 734 34 574
Equity compensation reserve 7 207 4 030 5 725
Foreign currency translation reserve 2 544 6 260 3 209
Revaluation reserve 3 544 3 544 3 544
Retained earnings 234 638 176 400 218 783
Equity attributable to shareholders of the company 600 450 402 597 466 680
Non-controlling interest 7 839 7 558 6 008
Total equity 608 289 410 155 472 688
Non-current liabilities 251 352 282 394 190 767
Interest-bearing borrowings 7 160 449 237 432 145 791
Financial liabilities 39 986 - -
Deferred taxation liability 50 917 44 962 44 976
Current liabilities 289 892 355 233 301 422
Trade and other payables 103 559 105 292 105 552
Provisions 17 101 26 833 42 938
Deferred income 8 109 116 103 661 67 271
Current tax payable - 10 423 6 811
Financial liabilities 38 789 72 576 59 476
Current portion of interest-free borrowings 841 - -
Current portion of interest-bearing borrowings 7 20 486 36 448 19 374
Total equity and liabilities 1 149 533 1 047 782 964 877
Net asset value per share (cents) 399,26 293,23 337,48
Tangible net asset value per share (cents) 13,54 (83,41) (34,18)
Liquidity ratio (times) 1,30 0,96 0,86
Solvency ratio (times) 2,12 1,64 1,96
Market price per share
Close (cents) 1 598 1 300 1 242
High (cents) 1 699 1 400 1 450
Low (cents) 1 163 820 800
Capital expenditure for the period (R'000) 5 779 4 854 10 478
Capital commitments (R'000) 7 305 4 950 13 084
* Refer to note 9.2
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
Unaudited Unaudited Audited
6 months 6 months Year
ended ended ended
31 Dec 31 Dec 30 June
2016 2015 2016
Notes R'000 R'000 R'000
OPERATING ACTIVITIES
Cash (utilised in)/generated from operations (8 056) 27 193 173 602
Finance income 2 968 3 627 5 091
Finance costs 3 (9 993) (4 512) (15 377)
Dividends paid (19 634) (14 481) (18 630)
Taxation paid (25 816) (17 471) (55 029)
Net cash flow (utilised in)/generated from operating activities (62 531) (5 644) 89 657
INVESTING ACTIVITIES
Property and equipment acquired (4 044) (3 851) (7 934)
Intangible assets acquired and developed (1 735) (1 003) (2 544)
Proceeds on disposal of property and equipment 138 70 178
Proceeds on disposal of asset held for sale - - 9 733
Net cash inflow/(outflow) on acquisition of subsidiaries 9.1 4 779 (129 927) (137 791)
Net cash flows utilised in investment activities (862) (134 711) (138 358)
FINANCING ACTIVITIES
Proceeds from borrowings 201 500 227 478 267 431
Repayment of borrowings (189 392) (24 343) (173 011)
Payment of financial liabilities (24 860) - -
Issue of shares for cash 84 000 - 2 216
Net cash inflow from financing activities 71 248 203 135 96 636
Net increase in cash resources 7 855 62 780 47 935
Exchange differences on translation 845 3 841 817
Cash and cash equivalents at beginning of period 77 724 28 972 28 972
Cash and cash equivalents at end of period 86 424 95 593 77 724
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Equity Foreign Attributable
Other compen- Asset currency to equity Non-
Share Share capital sation revaluation translation Retained holders of controlling
capital premium reserves reserve reserve reserve earnings the parent interest Total
R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000
Balance at 30 June 2015 (audited) 13 128 820 26 595 530 3 544 2 419 159 173 321 094 - 321 094
Total comprehensive income
for the period - - - - - 3 841 31 708 35 549 - 35 549
Profit for the period - - - - - - 31 708 31 708 - 31 708
Other comprehensive income
for the period - - - - - 3 841 - 3 841 - 3 841
Non-controlling interest arising on
the acquisition of subsidiaries - - - - - - - - 7 558 7 558
Share-based payments - - - 3 500 - - - 3 500 - 3 500
Issue of shares for
business combination 1 69 795 (12 861) - - - - 56 935 - 56 935
Dividend paid - - - - - - (14 481) (14 481) - (14 481)
Balance at 31 December 2015
(unaudited) 14 198 615 13 734 4 030 3 544 6 260 176 400 402 597 7 558 410 155
Balance at 30 June 2016 (audited) 14 200 831 34 574 5 725 3 544 3 209 218 783 466 680 6 008 472 688
Total comprehensive income
for the period - - - - - (665) 35 489 34 824 1 567 36 391
Profit for the period - - - - - - 35 489 35 489 1 567 37 056
Other comprehensive income
for the period - - - - - (665) - (665) - (665)
Share-based payments - - - 2 000 - - - 2 000 - 2 000
Issue of shares for
business combination - 34 574 (34 574) - - - - - - -
Shares issued during the year 1 84 517 - (518) - - - 84 000 264 84 264
Shares to be issued - - 32 580 - - - - 32 580 - 32 580
Dividend paid - - - - - - (19 634) (19 634) - (19 634)
Balance at 31 December 2016
(unaudited) 15 319 922 32 580 7 207 3 544 2 544 234 638 600 450 7 839 608 289
NOTES TO THE UNAUDITED FINANCIAL STATEMENTS
1. BASIS OF PREPARATION
The unaudited condensed consolidated interim results for the six months ended 31 December 2016
have been prepared in accordance with the requirements of the JSE Limited Listings Requirements
for interim reports, the requirements of the Companies Act applicable to condensed financial
statements, the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee,
the Financial Reporting Pronouncements as issued by the Financial Reporting Standards Council and
contain information required by IAS 34 Interim Financial Reporting. The accounting policies applied in
preparation of these condensed consolidated interim results are in terms of IFRS and are consistent with
those applied in the previous annual financial statements.
The report was prepared under the supervision of the Chief Financial Officer, Ms Nombali Mbambo
CA(SA), and has not been audited by the Group's external auditors.
The unaudited condensed consolidated interim results were approved by the board of directors on
10 February 2017.
Unaudited Unaudited Audited
31 Dec 31 Dec 30 June
2016 2015 2016
R'000 R'000 R'000
2. FINANCE INCOME
Imputed interest 1 326 543 2 068
Bank interest 968 283 1 436
CQS - 3 344 3 344
Other interest - - 311
Total finance income 2 294 4 170 7 159
3. FINANCE COSTS
Borrowings 9 993 4 512 15 377
Financial liabilities (imputed) 5 299 3 352 6 921
Total finance cost 15 292 7 864 22 298
4. NORMALISED HEADLINE EARNINGS
Normalised headline earnings are calculated by adding back to headline earnings the amortisation
of acquired intangible assets net of deferred taxation, as a consequence of the purchase price
allocations completed in terms of IFRS 3 Business Combinations and fair value adjustments to financial
liabilities (imputed interest) on outstanding contingent purchase considerations.
Unaudited Unaudited Audited
31 Dec 31 Dec 30 June
2016 2015 2016
R'000 R'000 R'000
Reconciliation between headline earnings and normalised
headline earnings for the period:
Headline earnings 35 515 31 673 78 259
Amortisation of intangible assets acquired 13 501 4 390 17 084
Deferred taxation on amortisation of intangible assets acquired (3 780) (1 229) (4 783)
Fair value adjustment to financial liability (imputed interest) 5 299 3 352 6 921
Normalised headline earnings 50 535 38 186 97 481
Weighted average number of ordinary shares in issue (000) 145 476 132 178 136 016
Normalised headline earnings per share (cents) 34,74 28,89 71,67
5. DIVIDENDS
Ordinary dividend number 14 of 13,40 cents per share was paid to shareholders on 19 September 2016.
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
2016 2015 2016
R'000 R'000 R'000
6. GOODWILL
Carrying amount at beginning of period 472 515 276 525 276 525
Acquisition of CQS - 195 990 195 990
Acquisition of EasyRoster 48 396 - -
Carrying amount at end of period 520 911 472 515 472 515
Comprising:
Cost 520 911 527 466 472 515
Goodwill is allocated as follows:
- Adapt IT Proprietary Limited 276 525 276 525 276 525
- CQS 195 990 195 990 195 990
- EasyRoster 48 396 - -
Total 520 911 472 515 472 515
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 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 14% (2015: 12%) (weighted average cost of capital); and
- Projected cash flows for the five years based on a 5% (2015: 5%) growth rate.
Unaudited Unaudited Audited
31 Dec 31 Dec 30 June
2016 2015 2016
R'000 R'000 R'000
7. INTEREST-BEARING BORROWINGS
Non-current borrowings 160 449 237 432 145 790
- Investec Bank Limited 148 555 199 611 124 989
- Sanlam Capital Markets Limited 11 894 37 821 20 801
Current borrowings 20 486 36 448 19 374
- Investec Bank Limited 1 576 27 867 1 182
- Sanlam Capital Markets Limited 18 910 8 581 18 192
Total 180 935 273 880 165 164
The Investec Bank Limited loan was obtained in July 2015. The loan is a 60-month credit facility.
The interest is based on three month JIBAR plus a 3,2% margin. The interest rate during the period
ranged between 10,508% and 10,558%.
The loan is secured by 100% of the shares held in Adapt IT Proprietary Limited and cession of book debts
held by Adapt IT Holdings Limited and its subsidiaries.
Excess cash resources are used from time to time to reduce the facilities.
CQS has a loan with Sanlam Capital Markets Limited. The interest is charged at a fixed rate of 9,22%
over a five-year loan period.
The loan is repayable in variable bi-annual instalments ending 28 February 2018. The loan is secured by
a pledge of issued share capital, a cession of trade receivables and a notarial bond over all moveable
assets of CQS.
Unaudited Unaudited Audited
31 Dec 31 Dec 30 June
2016 2015 2016
R'000 R'000 R'000
8. DEFERRED INCOME
Education segment 91 020 90 362 52 289
Manufacturing segment 7 044 9 666 4 630
Energy segment 6 827 3 258 5 088
Financial segment 4 225 375 5 264
Total 109 116 103 661 67 271
The Education segment deferred income relates to annual maintenance fees invoiced in advance
for the year and usually collected at the end of January and February, the start of the education year.
The deferred income of other segments includes long-term software projects in progress, ongoing
upgrades and other software-related projects for clients.
9. BUSINESS COMBINATIONS
9.1 Acquisition of subsidiary
On 1 August 2016, the Group acquired the entire issued share capital of EasyRoster Proprietary
Limited and EasyRoster Software Proprietary Limited ('EasyRoster'). EasyRoster is South African
registered.
EasyRoster is a leading Information Technology company with more than 20 years' experience
and excellence in the development of software tools for operational management.
EasyRoster has an extensive national and international customer footprint in over 25 countries.
The purchase consideration consists of R1,6 million in cash paid on 12 January 2017,
R17,1 million in shares to be issued in December 2017 at 1 595 cents per share, with a further
contingent consideration of a maximum amount of R68,6 million, which is contingent upon the
achievement by EasyRoster of EBITDA performance warranties over 48 months.
The fair value of the net assets acquired amounted to R23,0 million, resulting in goodwill of
R48,4 million at acquisition. The purchase 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, which is in line with Adapt IT's strategy of targeted acquisitive growth, will augment
the Group's Manufacturing segment.
The fair values of the identifiable net assets and liabilities of EasyRoster as at the date of acquisition
were:
Fair value
recognised
on
acquisition
R'000
Assets
Property and equipment 27
Intangible assets 33 201
Deferred taxation 256
Trade and other receivable 1 283
Cash and cash equivalents 4 779
Total assets 39 546
Liabilities
Deferred tax liabilities 9 296
Current portion of interest-bearing borrowings 4 503
Trade and other payables 1 168
Current tax payable 1 534
Total liabilities 16 501
Total identifiable net assets 23 045
Goodwill arising on acquisition 48 396
Fair value of consideration payable: 71 441
Cash payable 12 January 2017 1 615
Shares to be issued in December 2017 17 155
Fair value of contingent purchase consideration owing in respect of acquisition
and settled through cash when relevant warranties have been fulfilled 52 671
Fair value of consideration payable 71 441
Cash outflow on acquisition:
Net cash acquired with the subsidiary 4 779
Cash paid -
Net cash inflow on acquisition 4 779
The acquisition is provisionally accounted for in terms of the allowance per IFRS 3 Business
Combinations.
From the date of acquisition, EasyRoster has contributed R4,0 million (R4,8 million if acquired with
effect from 1 July 2016) to the profit after tax of the Group. Non-cash acquisition related expenses
(amortisation of intangible assets and notional interest on deferred purchase consideration)
amounted to R3,7 million after tax.
Cash acquisition related costs of R0,5 million have been expensed and are included in operational
expenses on the statement of profit or loss and other comprehensive income.
9.2 Measurement period adjustment
At 31 December 2015, the CQS acquisition was provisionally accounted for in terms of the
allowance per IFRS 3 Business Combinations. The purchase price allocation valuation was
completed by the year ended 30 June 2016 and included in the fair value of assets and liabilities
recognised on acquisition.
Consequently, the comparative figures for 31 December 2015 have been adjusted. The effect of
the adjustment is disclosed in the table below. There is no impact on the profit/loss for the period.
The effect on 31 December 2015 Group results is as follows:
Measurement
As originally period Restated
Condensed consolidated reported adjustment amount
Statement of financial position R'000 R'000 R'000
ASSETS
Non-current assets 673 188 34 301 707 489
Property and equipment 36 287 - 36 287
Intangible assets 81 185 89 252 170 437
Goodwill 527 466 (54 951) 472 515
Equity accounted investment 628 - 628
Deferred taxation asset 27 622 - 27 622
Current assets 330 560 9 733 340 293
Trade and other receivables 233 343 - 233 343
Asset held for sale - 9 733 9 733
Current tax receivable 1 624 - 1 624
Cash and cash equivalents 95 593 - 95 593
Total assets 1 003 748 44 034 1 047 782
EQUITY AND LIABILITIES
Equity
Share capital 14 - 14
Share premium 198 615 - 198 615
Other capital reserves 13 734 - 13 734
Equity compensation reserve 4 030 - 4 030
Foreign currency translation reserve 6 260 - 6 260
Revaluation reserve 3 544 - 3 544
Retained earnings 176 400 - 176 400
Equity attributable to shareholders of the company 402 597 - 402 597
Non-controlling interest - 7 558 7 558
Total equity 402 597 7 558 410 155
Non-current liabilities 257 403 24 991 282 394
Interest-bearing borrowings 237 432 - 237 432
Deferred taxation liability 19 971 24 991 44 962
Current liabilities 343 748 11 485 355 233
Trade and other payables 98 985 6 307 105 292
Provisions 26 833 - 26 833
Deferred income 103 661 - 103 661
Current tax payable 5 245 5 178 10 423
Financial liabilities 72 576 - 72 576
Current portion of interest-bearing borrowings 36 448 - 36 448
Total equity and liabilities 1 003 748 44 034 1 047 782
10. SEGMENT ANALYSIS
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.
Management does not monitor assets and liabilities by segment.
The following tables present turnover and EBITDA information regarding the Group's operating segments
for the six months ended 31 December 2016 and 31 December 2015, respectively:
Manu- Financial
Education facturing Services Energy Other Total
R'000 R'000 R'000 R'000 R'000 R'000
Six months ended
31 December 2016
Turnover 84 655 122 315 162 472 91 249 - 460 691
Segment EBITDA 14 591 29 889 23 648 22 486 (745) 89 869
EBITDA margin (%) 17 24 15 25 - 20
Six months ended
31 December 2015
Turnover 87 753 112 533 42 725 67 427 - 310 438
Segment EBITDA 16 663 22 666 7 493 18 893 (3 462) 62 253
EBITDA margin (%) 19 20 18 28 - 20
CORPORATE INFORMATION
ADAPT IT HOLDINGS LIMITED TRANSFER SECRETARY
Incorporated in the Republic of South Africa Computershare Investor Services Proprietary Limited
Registration number 1998/017276/06 PO Box 61051, Marshalltown, 2107
Share code: ADI T +27 (0) 11 370 5000
ISIN: ZAE000113163 F +27 (0) 11 688 5200
COMPANY SECRETARY AUDITORS
Statucor Proprietary Limited Deloitte & Touche
22 Wellington Road
Parktown SPONSOR
Merchantec Capital
2193
2nd Floor, North Block
Hyde Park Corner Office Towers
REGISTERED OFFICE
Corner 6th Road and Jan Smuts Avenue
5 Rydall Vale Office Park Johannesburg
Rydall Vale Crescent 2196
La Lucia Ridge
4019 CORPORATE BANKERS
KwaZulu-Natal The Standard Bank of South Africa Limited
South Africa ABSA Bank
DIRECTORS LEGAL REPRESENTATIVES
Craig Chambers* (Chairman) Garlicke & Bousfield
Sbu Shabalala (Chief Executive Officer) Eversheds
Tiffany Dunsdon (Commercial Director) Shepstone & Wylie
Nombali Mbambo (Chief Financial Officer) Michalsons
Bongiwe Ntuli* Read Hope Phillips Thomas Cadman Incorporated
Catherine Koffman*
Oliver Fortuin* ADAPT IT WEBSITE
* Independent non-executive director www.adaptit.co.za
REGIONAL OFFICES
DURBAN JOHANNESBURG PRETORIA CAPE TOWN
5 Rydall Vale Office Park The Braes 50 Bushbuck Lane Great Westerford
Rydall Vale Crescent Adapt IT House Monument Park 3rd Floor
La Lucia Ridge I93 Bryanston Drive 0181 240 Main Road
4019 Bryanston Pretoria Rondebosch
KwaZulu-Natal Johannesburg Cape Town
T +27 (0) 31 514 7300 T +27 (0) 11 460 5300 T +27 (0) 12 425 5600 T +27 (0) 21 200 0480
F +27 (0) 86 602 8961 F +27 (0) 11 460 5301 F +27 (0) 12 460 5377
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