- Adcorp Holdings Limited achieves 6.5% revenue growth in 2023 fiscal year, reaching R12.0 billion.
- Cash generated by operations increases by 45.2% to R378 million, leading to an improved net cash position of R312 million.
- Adcorp declares a final dividend of 16.5 cents per share and a special dividend of 91.3 cents per share, subject to SARB approval.
Adcorp Holdings Limited, a prominent workforce recruitment and outsourcing company headquartered in South Africa, has announced its audited consolidated results for the fiscal year ending on February 28, 2023. Despite facing challenges in both the South African and Australian markets, Adcorp demonstrated resilience and strength, reporting positive financial outcomes.
During the fiscal year, Adcorp achieved several key milestones and recorded significant growth in its financial performance. Revenue from continuing operations rose by 6.5% to reach R12.0 billion, a substantial increase compared to R11.3 billion in the previous year. This marks the first annual revenue growth for Adcorp since 2016, highlighting the company’s ability to navigate challenging market conditions successfully.
The company also witnessed a 6.1% increase in gross profit from continuing operations, which reached R1.3 billion compared to R1.2 billion in the previous year. However, operating profit from continuing operations, before finance income and finance costs, experienced a decline of 18.4%, amounting to R164 million in 2023 compared to R201 million in 2022.
Adcorp’s cash flow performance demonstrated remarkable improvement, with cash generated by operations increasing by an impressive 45.2% to R378 million, up from R260 million in 2022. This increase was primarily attributed to the company’s efficient management of working capital. As a result, Adcorp’s net cash position also improved, reaching R312 million, a significant increase from R198 million in the previous year.
Earnings per share from continuing operations showed positive growth, with a total of 114.7 cents per share reported in 2023 compared to 96.3 cents per share in 2022. Similarly, total headline earnings per share increased to 147.8 cents per share from 99.7 cents per share in the previous year. However, total earnings per share declined to 37.3 cents per share from 109.1 cents per share in 2022, and total headline earnings per share decreased to 61.1 cents per share from 99.4 cents per share.
Adcorp’s commitment to rewarding its shareholders is evident in the dividend declarations made. The company’s board of directors has approved a final gross dividend of 16.5 cents per ordinary share (compared to 47.0 cents per ordinary share in 2022) and a special gross dividend of 91.3 cents per ordinary share (compared to no special dividend in 2022). However, the special dividend is subject to approval by the South African Reserve Bank (SARB).
Looking ahead, Adcorp remains focused on optimizing its brand collection and achieving superior growth and returns for its shareholders. Despite acknowledging the current economic outlook in South Africa, the company’s strengthened balance sheet and positive cash flow position place it in a favorable position to weather any challenges and capitalize on emerging opportunities. Adcorp is also optimistic about the growth achieved in Australia and has plans to expand into new areas and launch additional services.