Adcorp shifts offshore focus to local businesses
‘We are taking a few months to reposition Adcorp to be profitable again,’ says new CEO Innocent Dutiro
Adcorp, which swung into a large loss in the six months to August, has brought in a new management team to reposition the company to focus on its local businesses, having overspent on ambitious offshore projects. The employment services group suffered a headline loss per share of 40.1c, compared with headline earnings per share of 77.5c in the six months to August 2016. Its revenue decreased 2% to R7.8bn during the reporting period. Operating profit plunged to R27.6m compared with R191m in the prior period. Overhead costs trebled during the five years between 2012 and 2017, but Adcorp’s recently appointed CEO, Innocent Dutiro, said the group was on track, selling various offshore businesses and working out how to strengthen its core businesses. Said Dutiro: "Previous management spent too much time trying to acquire and run businesses abroad, taking their eye off the local core business. "We are taking a few months to reposition Adcorp to be profitable again." About R2bn was spent on...