ON THE SPOT
GIULIETTA TALEVI: Adcorp weighs up sales of non-core assets as it battles adversity in SA
CEO Richard Pike explains Adcorp’s strategy as shareholders finally lose patience
It’s clear some shareholders finally lost patience with their Adcorp investment on Monday, selling the stock down over 17% with little price recovery since. The green shoots of SA’s economy, nurtured by Pravin Gordhan and colleagues, seem to be withering in the face of factional politics and investor nervousness as companies refrain from sinking more money into their businesses. Business Day spoke to Adcorp CEO Richard Pike about his company’s place in SA’s perfect storm. Has Adcorp lost its way? You’re about to report a full-year headline loss and your share price has sunk. What’s going on? I wouldn’t say we’ve lost our way. What’s happened since 2009 is there’s been a vitriolic attack on our industry and us from various quarters in the trade union movement and government in the cause to ban labour broking, and what’s happened in the last two years has been the promulgation of new legislation, and we lost 20% of our South African volume. I think the important thing is that we saved...
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