BUSINESS MAVERICK: Adapt IT bounces back — and now has to deal with an unsolicited offer from Huge Group

  • 📰 dailymaverick
  • ⏱ Reading Time:
  • 65 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 29%
  • Publisher: 84%

Sverige Nyheter Nyheter

Sverige Senaste nytt,Sverige Rubriker

Small-cap shares are a bit unloved on the JSE right now, but software company Adapt IT has survived the tough climate of 2020 and is aiming for growth. Shareholders and unwelcome suitors have noticed.

It took small-cap software company Adapt IT a lot longer to recover from the beating that listed shares took in March 2020. That was when investors took fright at the looming coronavirus pandemic, causing global markets and the JSE to plunge by 25% or more over four days.

Adapt IT’s latest results for the six months ended December 2020 should further reassure shareholders. Not only has the software and services firm managed to keep revenue and operating profit stable during a very tough economic period, but it has repaid a further R57-million of debt from cash flows. As a result, net gearing reduced from 69% to 42% in the interim period.

The three business segments that delivered strong Ebitda growth were Education, which saw an increased demand for e-learning solutions and grew by 15%, Financial Services and Communication. Cash generated from operations after working capital changes amounted to R124-million, up from R74-million in the first half of 2020. Cash and cash equivalents of R142-million were available at the end of the period.

Acquisitions, which have been a cornerstone of the company’s growth over the last decade, will most probably resume in the next financial year, he adds.Huge will release an offer circular by 6 April, following which the Adapt IT board will make its recommendation to shareholders known, by no later than 23 April.

“Telecoms companies are under pressure as their services are increasingly commoditised,” says Dunsdon. “They need to diversify into higher-margin businesses like software.”

 

Tack för din kommentar. Din kommentar kommer att publiceras efter att ha granskats.
Vi har sammanfattat den här nyheten så att du kan läsa den snabbt. Om du är intresserad av nyheterna kan du läsa hela texten här. Läs mer:

 /  🏆 3. in SE

Sverige Senaste nytt, Sverige Rubriker

Similar News:Du kan också läsa nyheter som liknar den här som vi har samlat in från andra nyhetskällor.

Huge offer a validation of Adapt IT’s business, says CEOThe specialised software group has been approached about an R800m buyout from tech peer Huge Group For all those who are new to this working from home Bitcoin trading options Here's a little tip: Get a trusted Bitcoin expert and stick to him Clawleach Invest and play at similar times each day. Because : In times of chaos, your investment is your anchor to success I am engaged in this because this was how I saw a post about clawleach and I decided to give it a try and luckily it went well, I highly recommend him to any one interested in bitcoin trading. clawleach Investing today will save you the stress of financial crisis tomorrow.. Live the kind of life you want today by investing and trading Bitcoin option. Trade with a professional trader and start making good profits today. Amelimarkdonald
Källa: BDliveSA - 🏆 12. / 63 Läs mer »