Adapt IT delays results and warns of fall in earnings

Listed software group Adapt IT has delayed publication of its annual results to mid-October and warned of a fall in headline earnings per share due to the weak South African economy, among other factors.

Headline earnings per share are expected to fall by between 12% and 17% in the 12 months ended 30 June 2019. If discontinued operations are excluded, the figure will decline by between 10.2% and 15.3%, it said in a statement to shareholders shortly before markets closed in Johannesburg on Monday.

“The financial results have been impacted by a combination of factors including the difficult trading environment, especially for certain segments of the business, the application of new accounting standards, an impairment to an asset (fixed property) held for sale, foreign exchange movements and increased finance costs,” the company said in the statement.

“Notwithstanding these circumstances, the business remains resilient, has an expanded business strategy and is well positioned for growth,” it added.

Adapt IT has delayed publication of its annual financial results — which are usually published in late August — due to a variety of factors, including the adoption of new accounting standards. This, coupled with accounting for a “multi-jurisdictional foreign acquisition” have resulted in an “extended reporting timetable”.

“The accuracy of financial reporting is of utmost importance to the directors of Adapt IT,” the company, which is led by CEO Sbu Shabalala, said in explaining the delay in the results, which are now expected to be published on 14 October.

The company’s share price closed 5.6% lower at R5.05. Over the past year, it has shed about a third of its value while over three years it has fallen by over 60%.  — © 2019 NewsCentral Media