Shares in Adcorp, the South African-based employment services group, rose nearly 5 percent in intraday trade after it said yesterday that it expected its annual earnings to rise even more than anticipated earlier in this month as it eyes an up to 201 percent increase.
In an updated trading statement yesterday from May 13, the firm now expects headline earnings per share (heps) for the year ended February 2022 to increase between 96.0 -102.8 cents, a hike of between 181 and 201 percent.
Earnings per share were expected to be between 105.5 and 112.7c, an increase of between 196 to 216 percent.
On May 13 the company published a trading statement in which it advised shareholders that it expected Heps and Eps were expected to increase by at least 139 percent and 157 percent, respectively, compared to the previous corresponding period.
In the update then, it said Adcorp's 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 at the time.
Adcorp expects to publish its results on May 30.
BUSINESS REPORT ONLINE