DURBAN – Adcorp Holdings’ share price climbed by more than 11 percent on the JSE yesterday after the workforce solutions group turned the corner and produced favourable results for the six months to end August. The group turned a loss of R36 million into a R99m profit during the period. The share price closed 9.53 percent up at R18.62 on the JSE yesterday.
Chief executive Innocent Dutiro said the transitional phase had enabled the group to effect a financial turnaround, while at the same time mapping out a strategy that would stabilise and grow the business and achieve the ambitious targets the company had set for themselves in the next three years.
“We decided to focus on our core businesses and exit non-core, make the business lean and agile and reduce costs and transform the brand,” Dutiro said. The group took the decision to dispose of its African operations last year and Adcorp now has operations in South Africa and Australia.
The group has reaped the rewards and the underlying earnings before interest, tax, depreciation and amortisation (Ebitda) increased by 33 percent to R231m, up from R95m, while headline earnings per share from continuing operations rose to 88.6 cents a share, improving on last year’s loss of 15.2c.
The group also reduced its operating expenses by 16 percent to R896m and gearing improved from 61 to 35 percent.