Wrap Text
Unaudited Condensed Consolidated Interim Group Results for the Six Months Ended 31 December 2020
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")
SHORT-FORM ANNOUNCEMENT: UNAUDITED CONSOLIDATED INTERIM GROUP RESULTS FOR
THE SIX MONTHS ENDED 31 DECEMBER 2020
FINANCIAL HIGHLIGHTS
- Revenue declined by 2% to R707 million (2019: R721 million). The
decline on the prior comparative period is due to ongoing
challenging and weaker trading conditions particularly in South
Africa, which remains Adapt IT's primary market, constituting 73%
of total revenue. 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. The prior comparative period was not
affected by Covid-19.
- Annuity revenue remains healthy and an improved ratio on the
previous reporting period to 66% (2019: 60%).
- Earnings before interest, tax, depreciation and amortisation
(EBITDA) declined by 1% to R128 million (2019: R129 million*).
EBITDA included an increase in bonus provision of R16 million (2019:
Rnil).
- EBITDA margin was maintained at 18% as cost containment remained
a focus through operational efficiency projects, particularly in
divisions most impacted by Covid-19.
- Cash generated from operations increased to R124 million (2019: R74
million) representing an improved cash conversion ratio of 1,55
times (2019: 0,94 times). Cash and cash equivalents was R142 million
(2019: R73 million) at the end of the period.
- Earnings per share (EPS) increased by 37% to 20,06 cents (2019:
14,64 cents*).
- Headline earnings per share (HEPS) increased by 44% to 20,69 cents
(2019: 14,40 cents*).
- Normalised HEPS increased by 16% to 32,00 cents (2019: 27,70
cents*).
- Interest expense on borrowings decreased by 30% to R18 million
(2019: R25 million), with capital repayments of R57 million made
during the six month period to 31 December 2020.
- Net interest bearing borrowings decreased by R140 million to R324
million (2019: R464 million) and the net gearing ratio at 31
December 2020 was 42% (2019: 69%*).
* Prior year figures have been restated mainly for measurement period
adjustment.
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.
The information in the short-form announcement is only a summary of the
full announcement and accordingly does not contain full or complete
details. The full announcement is available on the Company's website
https://www.adaptit.com/hubfs/investor/2020-2021 Interim Results Announcement.pdf,
and can also be accessed online at:
https://senspdf.jse.co.za/documents/2021/jse/isse/adi/interim21.pdf
from 9 March 2021.
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 9 March 2021 to 16 March 2021, both days inclusive. Copies
of the full announcement may be requested by contacting Statucor (Pty)
Ltd, the Company Secretary, via telephone: +27(0) 12 4330216 and
email: Celeste@statucor.co.za
For and on behalf of the board
Craig Chambers
Independent Non-executive Chairman
Sbu Shabalala
Chief Executive Officer
Nombali Mbambo
Chief Financial Officer
9 March 2021
Directors
Craig Chambers* (Chairman)
Oliver Fortuin* (Lead Independent Director)
Catherine Koffman*
Zizipho Nyanga*
Sbu Shabalala (Chief Executive Officer)
Tiffany Dunsdon (Chief Commercial Officer)
Nombali Mbambo (Chief Financial Officer)
* Independent Non-executive director
Registered office
Adapt IT Johannesburg Campus
152 14th Road
Midrand
Company Secretary
Statucor (Pty) Ltd
Wanderers Office Park
52 Corlett Drive
Illovo
Sandton
2196
Transfer Secretary
Computershare Investor Services (Pty) Ltd
Private Bag X9000
Saxonwold
2132
Sponsor
Merchantec Capital
13th Floor, Illovo Point
68 Melville Road
Illovo, Sandton
2196
Date: 09-03-2021 07:30:00
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