Adcorp Holdings reports impressive annual results with a 7. 4% share price increase

IOL News

2 days ago

Adcorp Holdings delivered a significantly improved financial performance in its 2025 financial year, a direct outcome of multi-year restructuring efforts and sustained emphasis on capital discipline, operating leverage, and strategic alignment, its directors said.
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Adcorp Holdings' share price shot up 7.4% on the JSE Thursday after it reported annual results that included a doubling of the final dividend to 50.02 cents a share compared with the 24.2 cents per share that was declared last year.
The share of the company with operations in South Africa and Australia, that deploys over 45 000 contingent and contractor workers daily, was trading at R6/50 late Thursday afternoon, 52% higher than the price a year before.
Headline earnings a share increased to 135.4 cents in the year to February 29, from 83.8 cents a year before, this off a 2% rise in revenue to R13.2 billion.
Operating profit increased by 33.3% to R171.6 million, and profit for was 60% higher at R140.9m. The net unrestricted cash position of R442.1m was more than double the R204.2m at the same time last year. There were no drawn debt facilities.
The group directors said the year marked a period of disciplined execution and operational consolidation.
'In the face of persistent macroeconomic volatility in both South Africa and Australia, the group delivered a significantly improved financial performance, a direct outcome of multi-year restructuring efforts and sustained emphasis on capital discipline, operating leverage, and strategic alignment.'
They said that in the past year operating costs were tightly contained and remained flat despite inflationary and operational headwinds in both geographies.
'The group enters the next financial year from a position of financial strength, with a clean balance sheet, robust liquidity position, and momentum across high-potential growth verticals. Our ability to deliver resilient earnings and strong cash conversion positions us to fund growth and shareholder returns with agility and confidence,' the directors said.
The past year was the third consecutive year of revenue growth, an achievement that stands out amid widespread declines across global workforce solutions providers.
Directors said they were now focused on driving margin improvement, growing higher-margin outsourcing services, and advancing its transition into a technology-enabled workforce solutions provider.
Key investment would continue into AI and automation across payroll, workforce matching, and operational processes.
Geographically, the group is expanding its aged care and healthcare staffing capabilities in Australia and growing its presence in South African outsourced offerings. Adcorp was also extending its footprint into Africa, aligned to the needs of global clients seeking integrated, compliant staffing solutions across the continent.
In the past year, blue-collar staffing through BLU experienced a slight decline in year-on-year revenue, reflecting broader market uncertainty, while sector-focused training through PMI delivered strong growth, benefiting from its targeted sector strategy and the increasing demand for upskilling in transformation-led initiatives.
The Professional Services SA division delivered stable year-on-year revenue, driven by a diversified service offering, strong client retention, focused sales execution, and ongoing cost optimisation efforts.
The Contingent Staffing AUS division, represented by LSA, reported double-digit growth across revenue and gross profit, due to the successful acquisition of new national and regional contracts, as well as the geographic expansion of existing client relationships.
The Staffing Solutions division delivered a strong performance. The division was renamed and now comprises FunxionO, Adfusion, Capability, and the newly established Telvuka brand. Revenue growth in the first half was modest, reflecting client caution amid political uncertainty; however, the second half saw a notable improvement.
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