SHARES in Adcorp leapt nearly 24 percent to R6 on Friday afternoon after the South Africa-based workforce management solutions group said its annual earnings were likely to be 139 percent up.
Headline earnings per share was expected to increase by a minimum of 47.5 cents, compared to 34.2c reported for the year ended February 28, 2021, while earnings per share was likely to increase by a minimum of 55.9c, an increase of at least 157 percent from the prior year.
Adcorp expected to release its results for the 12 months ending February 28, 2022 on or around May 30.
Adcorp also said its objectives for the year ended February 28, 2022 were focused on stabilising the company.
“The company has continued to manage costs prudently and has improved its earnings. Adcorp Group revenue is expected to be in line with the prior year on a constant currency basis. Revenue was negatively affected by the strategic exit of low margin contracts, the July KwaZulu-Natal unrest in South Africa, flooding in Australia and the impact of Covid-19 in key markets,“ it said.
It said the economic recovery in South Africa remained slow and uneven, and the recovery in Australia was slowed by its Covid surge. Adcorp expected to report a further improvement in its working capital position as at February 28. [email protected]
BUSINESS REPORT ONLINE