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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:
IOL News
22-04-2025
- Business
- IOL News
SA network providers concerned by Tribunal blocking R13bn Maziv acquisition by Vodacom
The Association of Communications and Technology (ACT) has raised concerns about the impact of the Competition Tribunal blocking Vodacom Group from acquiring a 30% to 40% stake in fibre company Maziv for R13.2 billion. The ACT - which represents leading network operators including MTN, Vodacom, Telkom, and Rain - on Friday said it believed the deal would have had a huge impact on Small, Medium and Micro Enterprises (SMMEs). Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ In March, the Competition Tribunal prohibited the acquisition, which would have created the largest fibre company in South Africa, citing significant anti-competitive effects that outweighed limited public interest benefits. The Tribunal found that the deal would harm competition in mobile and fibre services, affecting millions of South African consumers that would increasingly in the future be making use of data/internet services. 'Our decision bears heavily on us since it has implications for the millions of South African consumers that now and increasingly in the future require access to affordable data and internet services,' said the Tribunal then. In an interview with Business Report on Friday, ACT CEO Nomvuyiso Batyi said that the transaction would have made a meaningful and positive difference, especially for the SMME community. 'The investment that was on the table carried the potential to directly support industry transformation goals. It could have injected much-needed capital into areas that often get overlooked, helping to stimulate innovation, growth, and access,' she said. Batyi added that they saw the potential for it to shift the needle where it matters. 'It would have created real opportunities for small businesses and helped bridge the inequality gap in the sector while bridging the digital divide,' she said. 'Another overlooked element in all of this is the end-users who would've stood to benefit from the expansive infrastructure rollout that this deal could have made possible. What this means is slower progress in connecting underserved areas. It means another delay in bringing fibre to the townships and villages.' Batyi said that connectivity was not just a catchphrase or a reference to telecoms infrastructure. 'It's much more than cables and towers. Connectivity is a tool for social cohesion it's what allows us to bridge divides, to bring people and communities together. It's about connecting SMMEs with mentors, funding, and real opportunities,' she said. Batyi added that the ruling felt like a missed opportunity - particularly in the context of transformation. 'The proposed Enterprise and Supplier Development fund that was part of the merger had the potential to set the tone for how big players and smaller ones can work together meaningfully,' she said. 'In light of the President's State of the Nation Address call to action around supporting SMMEs, this was a practical chance to respond to that call.' The reasons for the Tribunal's decision, which was finalised on October 29, 2024, were explained in a 350-page document only at the end of March 2025. 'Delayed rulings, lack of timely reasons, and processes that stretch out without closure lead to unnecessary uncertainty,' Batyi said. 'When parties are advised to revise and they do so in good faith, only to be rejected again, it raises real questions about the transparency and consistency of our regulatory framework.' Batyi added that when it comes to inter-agency collaboration, they believe there is massive room for improvement. She said that they needed a harmonised approach where competition principles were balanced with developmental goals and where the Constitution, particularly Sections 2 – the Supremacy Clause and 9 - The Equality Clause, were upheld.
