INTERIM GROUP RESULTS

Transcription

1 Adapt IT unaudited condensed consolidated INTERIM GROUP RESULTS for the six months ended 31 December 2014

2 520+ Employees Level 3 B-BBEE Johannesburg Durban Pretoria Cape Town Share code ADI JSE listed software and services SERVING CUSTOMERS IN 18 COUNTRIES, SPECIALISTS IN MANUFACTURING, EDUCATION, FINANCIAL SERVICES AND ENERGY.

3 DIRECTORATE CRAIG CHAMBERS BONGIWE NTULI OLIVER FORTUIN CATHERINE KOFFMAN SIBUSISO SHABALALA TIFFANY DUNSDON CFA, PDM, BCom Independent Non- Execu/ve Chairman Appointed 3 May 2011 CA (SA) Independent Non- Execu/ve Director Appointed 27 May 2008 MBA Independent Non- Execu/ve Director Appointed 8 February 2013 BA, LLB, LLM Independent Non- Execu/ve Director Appointed 6 February 2015 BCom Chief Execu/ve Officer Appointed 5 December 2007 CA (SA) Financial Director Appointed 18 April 2002

4 BUSINESS OVERVIEW

5 OUR BUSINESS Business Intelligence and Analytics Project Management Talent Resourcing ERP Implementation Human Capital Management Services Development and Integration Services 18% Financial Services Manufacturing 34% 20% Energy Education 28% Business Advisory Services Technical Advisory Services SAP IS-OIL Fuel-FACS Education Administration Systems Development and Integration Services Support Services

6 HIGHER EDUCATION Adapt IT has a rich history, spanning 28 years, in offering integrated solutions to tertiary and higher education institutions worldwide. Background 52 higher and further education institutions Intricate understanding of complex environments Service offering Software ERP Support Services Development and Integration services Training and Development Services ITS Integrator Education ERP ITS Mobile Real-time information via mobile devices Adapt IT Timetabling InfoSlips Artena - Campus administration system Key customers include: Key customers 6

7 MANUFACTURING Adapt IT has been working with customers in manufacturing, agro-processing, mining and utilities for 18 years to understand their challenges and create innovative solutions to address them. Background 124 customers Specialists in plant operations, engineering and human capital management Service offering Software Business Intelligence Services Human Capital Management Services ERP Support Services Development and Integration Services Cloud Services Tranquillity Process Manufacturing ERP CaneLab Weighbridge and Cane Testing Solution HCM Spectrum SAP HCM and Payroll on the Cloud OpSUITE SHEQ Solution TalentSPHERE Talent Management System Key customers include: Key customers 7

8 FINANCIAL SERVICES Adapt IT has been providing specialised services, skills and solutions to leading financial services institutions for 14 years. Together with its strategic technology partners, Adapt IT has built a solid reputation and has become trusted advisor to South Africa s leading banks and financial institutions. Background 5 major financial institutions Specialised services, skills and solutions Service offering Business Intelligence and Analytics Talent Resourcing Consulting Services Training Services Software Motio optimising IBM Cognos IBM Mid-Market Solutions Complete Business Analytics Solutions IBM Cognos BI, analytics and performance management Microsoft Business Intelligence Enterprise Business Intelligence and Analytics Key customers include: Key customers 8

9 ENERGY With 10 years of SAP Oil and Gas and Supply Chain experience in projects around the world, Adapt IT provides specialist advice to companies who have selected SAP as their strategic enterprise platform. Background 26 customers Customisation and integration of operational IT supporting supply chain management, of distribution process Service offering Business Advisory Technical Advisory Solution Development Software as a Service ( SaaS ) System Support Software SAP IS Oil & Gas solutions supporting the full industry value chain TouchStar UK fuel distribution system Fuel-FACS+ Terminal Automation Software Ventyx Ellipse fully integrated EAM solution - Utilities Key customers include: Key customers 9

10 ACQUISITION ASPIVIAUNISON Cloud Enterprise and Carrier Communications Management Software-as-a-Service (SaaS) Solution. ENTERPRISE OFFERING Improving communication efficiencies, curbs wasteful expenditure and assists in modeling infrastructure, with a long term view is to deliver continuous value within the organisation s communication environment. CARRIER OFFERING Providing customer engagement applications, billing solutions, contract and invoice advisory services as well as customer self service platforms. Background customers Specialists enterprise voice and mobile management Background 26 customers Carrier and VAN customer engagement applications, billing solutions, contract/invoice advisory and self Cloud and SAAS TEM platform Telephony and Data management service Service offering Enterprise communication analytics Carrier Expense Management Development and Integration Services Service offering Self Care application delivery Carrier Revenue Assurance Customer Self Care platform for corporate customer AU Enterprise Voice Billing Call Accounting TEM platform Software TLM Corporate Provider Management Tool MDSM Mobile Device Spend Management Software CCSS (Corporate Carrier Self Service) Telco Customer Consumption Manager Bill Analytics Key customers include: Key customers include: Key customers Key customers

11 ACQUISITION ASPIVIAUNISON ADAPT IT & AspiviaUnison Leadership Adapt IT Holdings Limited Chairman Craig Chambers, AspiviaUnison Director Andrew Harris, Adapt IT CEO Sbu Shabalala, Adapt IT Financial Director Tiffany Dunsdon, AspiviaUnison Director Craig Young. Acquired 100 percent of AspiviaUnison on 1 September customers 14 year s experience 58 Employees in Johannesburg, Cape Town and Durban Forms part of Adapt IT s Financial Services sector focus Diversify and bolster customer base Enhance the overall Microsoft capability High annuity income

12 ADAPT IT S TECHNOLOGY PARTNERS Microso? IBM Oracle SAP Adapt IT is a Microsoft Certified Partner offering Adapt IT S clients a comprehensive range of highly accredited independent technical support for Microsoft and multi-vendor products. Adapt IT s IBM partnership enables the company to develop next generation applications for big data and cognitive computing providing insights into opportunities, threats and efficiencies for an organisation. Adapt IT is an Oracle Gold Partner and Independent Software Vendor (ISV) which equips us with the latest technology to exceed customer needs, remaining on the leading edge of innovation. Adapt IT is a SAP Certified Hosting and BPO Partner, offering cloud-based solutions, including certified fast start templates. Additionally, designing and implement solutions for HCM, Oil and Supply Chain industries. 12

13 FINANCIAL HIGHLIGHTS

14 ADI INTERIM RESULTS 31 DECEMBER % 85% 35% TURNOVER OPERATING PROFIT HEPS

15 ADI 5 YEAR REVIEW TURNOVER (R m) Up 38% Year Compound annual growth rate 39%

16 ADI 5 YEAR REVIEW EARNINGS PBIT (R m) Up 85% 40, ,00 30,00 25,00 20, ,00 10,00 5,00 0, Profit margin 14.5%

17 ADI 5 YEAR REVIEW 20,00 18,57 EARNINGS PER SHARE (cents) Up 36% 18,00 16,00 14,00 13,71 12,00 10,00 8,36 8,00 6,00 4,00 2, ,19 5 Year HEPS CAGR 33%

18 ADI 5 YEAR REVIEW DIVIDEND PER SHARE (cents) Up 48% 9,00 8,00 7,00 6,00 5,00 4,00 3,00 2,00 1,00-8,23 4,84 5,56 3,41 2, Policy of 4 times cover maintained

19 FINANCIAL STATEMENTS

20 ADI INTERIM RESULTS 31 DECEMBER December December June 2014 Period-onperiod variance % Basic earnings per share (cents) 18,57 13,71 34,45 36 Headline earnings per share (cents) 18,58 13,74 34,55 35 Diluted basic earnings per share (cents) 18,57 13,71 33,48 36 Diluted headline earnings per share (cents) 18,58 13,74 33,58 35 Dividend per share (paid) (cents) 8,23 5,56 5,56 48

21 ADI ABRIDGED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Unaudited 31 December 2014 R R 000 Audited Year ended 30 June Perod-onperiod Variance 2014 R 000 % Revenue Turnover Cost of sales ( ) ( ) ( ) 32 Gross profit Administrative, selling and other costs (79 177) (60 048) ( ) 32 Profit from operations Net finance income (4 667) Profit before taxation Income tax expense (10 995) (6 208) (12 745) 77 Profit for the period Number of ordinary shares in issue (000) Weighted average number of ordinary shares in issue (000) Basic earnings per share (cents) 18,57 13,71 34,45 36 Headline earnings per share (cents) 18,58 13,74 34,55 35

22 ADI ABRIDGED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION ASSETS Unaudited 31 December 2014 R R 000 Audited 30 June Non-current assets Current assets Total assets R 000 EQUITY AND LIABILITIES Equity Non-current liabilities Current liabilities Total equity and liabilities

23 ADI ABRIDGED CONSOLIDATED STATEMENTS OF CASH FLOWS OPERATING ACTIVITIES Unaudited 31 December 2014 R R 000 Audited 30 June Cash generated from operations Net finance costs (1 533) Dividends paid (9 528) (6 017) (6 017) Taxation paid (11 492) (671) (15 280) Net cash flow (utilised in)/generated from operating activities (10 505) Net cash flows utilised in investment activities (38 445) (35 452) (43 182) Net cash inflow/(outflow) from financing activities (4 874) Net increase/(decrease) in cash resources (7 531) Exchange differences on translation (57) Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period R 000

24 ADI ABRIDGED STATEMENTS OF CHANGES IN EQUITY Share capital Share premium Other capital reserves Revaluation reserve Foreign currency translation reserve Retained earnings Unaudited R 000 R 000 R 000 R 000 R 000 R 000 R 000 Balance at 30 June Total comprehensive income for the period (57) Profit for the period Other comprehensive income for the period (57) - (57) Shares issued during the period (15 056) Dividend paid (9 528) (9 528) Total equity Balance at 31 December

25 SEGMENT RESULTS SEGMENT RESULTS

26 ADI SEGMENT CONTRIBUTION Financial Services Manufacturing Energy Education

27 SEGMENT ANALYSIS TURNOVER BY SECTOR (R m) Dec 2013 Dec Education Manufacturing Financial Services Energy 38%

28 SEGMENT ANALYSIS OPERATING PROFIT BY SECTOR (R m) 16,0 14,0 12,0 12, ,6 Dec 2013 Dec ,0 8,0 8 7, ,0 4,0 3,4 3,4 2,0 0,0 Education Manufacturing Financial Services Energy 85%

29 SEGMENT ANALYSIS OPERATING MARGIN BY SECTOR (%) 30% 28% Dec 2013 Dec % 22% 20% 15% 13% 17% 15% 16% 10% 10% 5% 5% 2013 = 11% 0% Education Manufacturing Financial Services Energy 15%

30 LOOKING AHEAD

31 GROWTH STRATEGY: GEOGRAPHIC EXPANSION South Africa 78% North America 8% Europe 1% Other African countries 10% Australasia 3%

32 GROWTH STRATEGY: AFRICA EXPANSION Growth Complexity

33 GROWTH STRATEGY: SECTOR DIVERSIFICATION ORGANIC Consolidate sector focus Extend into African markets Leverage technology partnerships Extend IT service offering ACQUISITIVE Acquire profitable annuity software businesses with blue chip customers Remove barriers to new markets and geographies Acquire intellectual property

34 GROWTH STRATEGY: FUNDING GEARING Up to 50% of Equity CAPITAL RAISING Private Placement targeting qualifying Black investors ADAPT IT EQUITY To vendors who remain in the group post acquisition

35 SOCIAL RESPONSIBILITY ADAPT IT KNOWLEDGE CENTRES Adapt IT has invested R1,1 million in two Knowledge Centres inspiring learners in technology and IT. May 2013 Zwakele Primary School in Amoati KwaZulu-Natal 1400 Learners June 2014 Steve Tshwete Secondary School in Olievenhoutbosch Gauteng 1000 Learners June 2015 Upcoming Initiative Western Cape

36 ADI INVESTMENT CASE GOOD TRACK RECORD Successful acquisitions Solid growth record Sector diversified SUSTAINABLE GROWTH STRATEGY Annuity income Organic growth across all sectors Mergers and Acquisitions SOLID PERFORMANCE Strong revenue growth Healthy margins Outperforming the ICT industry

37 THANK YOU Q & A