Organic vs acquisitive growth
Adapt IT issued a trading statement saying that HEPS would be between 22.9% and 42.9% higher. The range is surprisingly wide; I would have thought a small and fairly simple company would have a much better grip on what profit will be and hence a small range. That said, what I really want to see in the results is the split between organic and acquisitive growth. Adapt IT is following the EOH model of growing by both means, but managing that split between the t wo is the tricky part. Ideally, organic growth should be around two-thirds of growth. If organic growth is too low, then overall growth is at risk if quality and earning enhancing acquisitions become harder to find.