ADAPT IT HOLDINGS LIMITED - Trading Statement

Trading Statement

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")


TRADING STATEMENT


In terms of the Listings Requirements of JSE Limited, companies are required to publish a trading
statement as soon as they become reasonably certain that the financial results for the period to
be reported on will differ by more than 20% from those of the previous corresponding period.

Accordingly, a review by management of the financial results for the six months ended
31 December 2019 has indicated that:

-   the earnings per share ("EPS") is expected to be between 14.68 cents and 17.68 cents,
    reflecting a decrease of between 40.9% and 50.9% compared to the EPS of 29.91 cents for
    the six months ended 31 December 2018;

-   the headline earnings per share ("HEPS") is expected to be between 14.44 cents and
    17.42 cents, reflecting a decrease of between 41.7% and 51.7% compared to the HEPS of
    29.89 cents for the six months ended 31 December 2018; and

-   the normalised HEPS is expected to be between 26.06 cents and 30.30 cents, reflecting a
    decrease of between 28.6% and 38.6% compared to the normalised HEPS of 42.42 cents
    for the six months ended 31 December 2018.

The financial results have been impacted by a combination of factors including the difficult trading
environment especially for certain segments of the business, the adoption of IFRS 16: Leases in
the current reporting period and increased finance costs.

The financial results for the six months ended 31 December 2018 will be restated, consistent with
the 30 June 2019 restatement related to revenue recognition and the expected credit loss
provision as announced on SENS on 14 October 2019. On a comparative basis, excluding the
effects of implementing IFRS 16, compared to the restated 31 December 2018 interim period:

-   EPS is expected to be between 17.96 cents and 20.40 cents, reflecting a decrease of
    between 16.7% and 26.7% compared to the EPS of 24.48 cents for the six months ended 31
    December 2018;

-   HEPS is expected to be between 17.72 cents and 20.16 cents, reflecting a decrease of
    between 17.6% and 27.6% compared to the HEPS of 24.47 cents for the six months ended
    31 December 2018; and

-   normalised HEPS is expected to be between 29.44 cents and 32.92 cents, reflecting a
    decrease of between 5.3% and 15.3% compared to the Normalised HEPS of 34.76 cents for
    the six months ended 31 December 2018.

As per prior financial results announcements, normalised headline earnings is calculated by
adding back to headline earnings the amortisation of acquired intangible assets net of deferred
taxation, as a consequence of the purchase price allocations completed in terms of IFRS 3
Business Combinations and fair value adjustments to financial liabilities on outstanding
contingent purchase considerations.

Shareholders are advised that the financial information on which this trading statement is based
has not been reviewed or reported on by Adapt IT's auditors. Adapt IT's financial results for the
six months ended 31 December 2019 are expected to be released on SENS on or about
24 February 2020.


Johannesburg
14 February 2020

Sponsor
Merchantec Capital

Date: 14-02-2020 04:58:00
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