Market nod for Adcorp’s change of fortunes
Workplace-solutions company delivers strong interim results as new management steers the company to recovery
Shares in Adcorp Holdings rose 9.53% on Monday, their highest level in a year, after the workplace-solutions company reported a much-improved financial performance in the six months to August in which the company more than halved its debt. The reduction of debt and operating expenses indicate that the measures the company put in place to turn around its fortunes could be paying off. The measures included a new management team to lead the turnaround programme.
Speaking at the company’s results presentation in Johannesburg on Monday, CEO Innocent Dutiro said the half-year results reflected “early-stage positive outcomes” of steps taken in the past year to transform the company. “The business has to transform to take advantage of the numerous opportunities that face us,” he said. Adcorp’s net profit was R99m, compared to a loss of R36m in the same period in 2017. The underlying earnings before interest, tax, depreciation and amortisation (ebitda) increased 33% to R231m. Adcorp CF...