Unaudited Condensed Consolidated Interim Group Results for the Six Months Ended 31 December 2019
Adapt IT Holdings Limited
Incorporated in the Republic of South Africa
Registration number 1998/017276/06
Share code: ADI
("Adapt IT" or "the Company")
SHORT-FORM ANNOUNCEMENT: UNAUDITED CONSOLIDATED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2019
- Revenue increased by 10% to R721 million (2018: R657 million* (restated))
- Organic revenue declined by 1% and acquisitive growth was 11%
- Annuity revenue remains healthy and an improvement on the previous reporting period to
60% (2018: 58%)
- Earnings before interest, tax, depreciation and amortisation (EBITDA) improved by 22% to
R129 million (2018: R106 million*). EBITDA margin was 18% (2018: 16%*)
- EBITDA, before the impact of IFRS 16, was flat at R106m (2018: R106 million*). EBITDA margin
was 15% (2018: 16%*)
- Cash generated from operations was R74 million (2018: R54 million*) representing a cash
conversion ratio of 0,95 times
- Cash generated from operations, before the impact of IFRS 16 was R51 million
(2018: R54 million*) representing a cash conversion ratio of 0,70 times
- Earnings per share (EPS) decreased by 34% to 16,18 cents (2018: 24,48 cents*)
- EPS, before the impact of IFRS 16, decreased by 22% to 19,18 cents (2018: 24,48 cents*)
- Headline earnings per share (HEPS) decreased by 35% to 15,93 cents (2018: 24,47 cents*)
- HEPS, before the impact of IFRS 16, decreased by 23% to 18,93 cents (2018: 24,47 cents*)
- Normalised HEPS decreased by 19% to 28,18 cents (2018: 34,76 cents*)
- Normalised HEPS, before the impact of IFRS 16, decreased by 10% to 31,18 cents (2018: 34,76 cents*)
- The Board has decided not to declare a dividend and a review of the Company's capital structure is underway
* Prior year figures have been restated mainly for errors related to revenue recognition that were
identified pursuant to the adoption of IFRS 15 and as a result of the adoption of IFRS 9. The
components of the restatement are set out in note 13 on page 22 of the full announcement. The
reduction in revenue amounted to a net R10 million and the reduction to profit after tax was R8 million.
The commentary in this announcement is therefore presented against the restated 2018 results.
All restated figures are indicated with an asterisk (*).
The contents of the short-form announcement are the responsibility of the board of directors of Adapt IT ("Board").
The information in the short-form announcement is a summary of the full announcement available on the Company's
website https://cdn2.hubspot.net/hubfs/1848095/investor/2019-2020 Interim Results Announcement.pdf on
24 February 2020 and accordingly does not contain full or complete details. The full announcement can also be
accessed online at https://senspdf.jse.co.za/documents/2020/JSE/ISSE/ADI/interim20.pdf
The information in this announcement has been extracted from the Unaudited Condensed Consolidated
Interim Group Results. The Unaudited Condensed Consolidated Interim Group Results have been
prepared under the supervision of the Chief Financial Officer, Nombali Mbambo, CA(SA).
Any investment decisions by shareholders/investors should be based on the full announcement as released
by the JSE and published on the Company's website, http://www.adaptit.com. The full announcement is also available
at the Company's registered office (for inspection, at no charge, during office hours on any business day)
and at the offices of the Sponsor, Merchantec Capital, from 24 February 2020 to 2 March 2020, both days inclusive.
Copies of the full announcement may be requested by contacting Statucor (Pty) Ltd, the Company Secretary, on
telephone: +27(0) 12 4330216 or email: Khanyisile@statucor.co.za.
For and on behalf of the Board
Craig Chambers Sbu Shabalala Nombali Mbambo
Independent Non-executive Chairman Chief Executive Officer Chief Financial Officer
24 February 2020
Craig Chambers* (Chairman)
Oliver Fortuin* (Lead Independent Director)
Sbu Shabalala (Chief Executive Officer)
Tiffany Dunsdon (Chief Commercial Officer)
Nombali Mbambo (Chief Financial Officer)
* Independent Non-executive Director
Adapt IT Johannesburg Campus
152 14th Road
Statucor (Pty) Ltd
22 Wellington Road
Computershare Investor Services (Pty) Ltd
PO Box 61051
13th Floor, Illovo Point
68 Melville Road
Date: 24-02-2020 07:30:00
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