Or­ganic vs ac­quis­i­tive growth

Finweek English Edition - - SIMON SAYS -

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.

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