Headline earnings per share (HEPS) increased by 29% to 72.58 cents per share, and earnings before interest, tax, depreciation and amortisation (EBITDA) improved by 9% to R250 million.
“The tough trading conditions in South Africa were a catalyst for Adapt IT to drive operational improvements through significant cost containment measures in segments most impacted by Covid-19. Most operational efficiency projects have been completed, which will result in cost savings in future financial periods,” Adapt IT said.
The board decided to suspend the payment of dividends so as to preserve cash amid the fallout from the Covid-19 pandemic.
“I am pleased to report that in a year dominated by global macroeconomic challenges and the Covid-19 pandemic, Adapt IT proved to be highly resilient, through its sound underlying business model of providing mission critical software to its clients on a long term basis,” said Adapt IT chief executive officer, Sbu Shabalala.
The business cost structures where the market landscape has changed have been right sized for the current market, he said.
“Adapt IT continues to take advantage of its underlying diversification. This is done by assisting the current client base more effectively, focusing on sales in a cohesive manner and carefully expanding on the Pan Africa and Asia Pacific strategy.
“Furthermore, by remaining focused on cost containment, capital allocation and working capital, Adapt IT aligns itself with stakeholder expectations.” – BusinessTech