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Yahoo
2 days ago
- Business
- Yahoo
Adcorp Holdings Full Year 2025 Earnings: EPS: R1.35 (vs R0.84 in FY 2024)
Revenue: R13.2b (up 2.0% from FY 2024). Net income: R138.7m (up 61% from FY 2024). Profit margin: 1.0% (up from 0.7% in FY 2024). The increase in margin was driven by higher revenue. EPS: R1.35 (up from R0.84 in FY 2024). Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. All figures shown in the chart above are for the trailing 12 month (TTM) period Adcorp Holdings shares are up 19% from a week ago. What about risks? Every company has them, and we've spotted 3 warning signs for Adcorp Holdings (of which 1 is a bit unpleasant!) you should know about. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
IOL News
3 days ago
- Business
- IOL News
Adcorp Holdings reports impressive annual results with a 7. 4% share price increase
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. Image: Supplied 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. BUSINESS REPORT Visit:
Yahoo
13-05-2025
- Business
- Yahoo
Some Investors May Be Worried About Adcorp Holdings' (JSE:ADR) Returns On Capital
To avoid investing in a business that's in decline, there's a few financial metrics that can provide early indications of aging. More often than not, we'll see a declining return on capital employed (ROCE) and a declining amount of capital employed. Basically the company is earning less on its investments and it is also reducing its total assets. So after we looked into Adcorp Holdings (JSE:ADR), the trends above didn't look too great. Our free stock report includes 4 warning signs investors should be aware of before investing in Adcorp Holdings. Read for free now. For those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. The formula for this calculation on Adcorp Holdings is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.063 = R112m ÷ (R3.1b - R1.3b) (Based on the trailing twelve months to August 2024). So, Adcorp Holdings has an ROCE of 6.3%. Ultimately, that's a low return and it under-performs the Professional Services industry average of 14%. Check out our latest analysis for Adcorp Holdings While the past is not representative of the future, it can be helpful to know how a company has performed historically, which is why we have this chart above. If you'd like to look at how Adcorp Holdings has performed in the past in other metrics, you can view this free graph of Adcorp Holdings' past earnings, revenue and cash flow. The trend of returns that Adcorp Holdings is generating are raising some concerns. To be more specific, today's ROCE was 9.7% five years ago but has since fallen to 6.3%. In addition to that, Adcorp Holdings is now employing 34% less capital than it was five years ago. The fact that both are shrinking is an indication that the business is going through some tough times. Typically businesses that exhibit these characteristics aren't the ones that tend to multiply over the long term, because statistically speaking, they've already gone through the growth phase of their life cycle. Another thing to note, Adcorp Holdings has a high ratio of current liabilities to total assets of 43%. This effectively means that suppliers (or short-term creditors) are funding a large portion of the business, so just be aware that this can introduce some elements of risk. Ideally we'd like to see this reduce as that would mean fewer obligations bearing risks. To see Adcorp Holdings reducing the capital employed in the business in tandem with diminishing returns, is concerning. However the stock has delivered a 77% return to shareholders over the last five years, so investors might be expecting the trends to turn around. Regardless, we don't feel too comfortable with the fundamentals so we'd be steering clear of this stock for now. On a separate note, we've found 4 warning signs for Adcorp Holdings you'll probably want to know about. While Adcorp Holdings may not currently earn the highest returns, we've compiled a list of companies that currently earn more than 25% return on equity. Check out this free list here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
02-04-2025
- Business
- Yahoo
Investors in Adcorp Holdings (JSE:ADR) have seen returns of 17% over the past three years
Many investors define successful investing as beating the market average over the long term. But the risk of stock picking is that you will likely buy under-performing companies. Unfortunately, that's been the case for longer term Adcorp Holdings Limited (JSE:ADR) shareholders, since the share price is down 24% in the last three years, falling well short of the market return of around 18%. Shareholders have had an even rougher run lately, with the share price down 19% in the last 90 days. Now let's have a look at the company's fundamentals, and see if the long term shareholder return has matched the performance of the underlying business. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. Although the share price is down over three years, Adcorp Holdings actually managed to grow EPS by 72% per year in that time. Given the share price reaction, one might suspect that EPS is not a good guide to the business performance during the period (perhaps due to a one-off loss or gain). Alternatively, growth expectations may have been unreasonable in the past. Since the change in EPS doesn't seem to correlate with the change in share price, it's worth taking a look at other metrics. We note that the dividend has declined - a likely contributor to the share price drop. It doesn't seem like the changes in revenue would have impacted the share price much, but a closer inspection of the data might reveal something. The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers). Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time. As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. In the case of Adcorp Holdings, it has a TSR of 17% for the last 3 years. That exceeds its share price return that we previously mentioned. The dividends paid by the company have thusly boosted the total shareholder return. Adcorp Holdings shareholders are up 13% for the year (even including dividends). Unfortunately this falls short of the market return. On the bright side, that's still a gain, and it's actually better than the average return of 4% over half a decade It is possible that returns will improve along with the business fundamentals. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For example, we've discovered 4 warning signs for Adcorp Holdings that you should be aware of before investing here. If you are like me, then you will not want to miss this free list of undervalued small caps that insiders are buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on South African exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
