Chief executive Innocent Dutiro said the company had needed to make some tough decisions to establish a platform for improved business performance through substantial cost reductions, improving working capital management, unlocking cash generation and strengthening the balance sheet.
Dutiro said that the first two months of the financial year 2019 look positive and in line with the company forecasts, indicating that their turnaround efforts are already bearing fruit.
The group reported a 3percent decline in revenue to R15.3billion for the year, down from R15.8bn recorded during the corresponding period last year, while earnings before interest, tax, depreciation and amortisation (Ebitda) came down 60percent dramatically at R137million from R373m last year. Adcorp said the decline in earnings was driven largely by the group’s clean-up exercise that resulted in a number of once-off costs.
“However, excluding the impact of the once-off costs, the underlying Ebitda for the year was R387m, a 4percent improvement from a year earlier,” the group said.