Staffing group Adcorp posts huge profit jump, but SA business still under pressure after restructuring

The Money Show's Stephen Grootes is joined by John Wentzel, CEO of Adcorp Holdings. 

Adcorp Holdings has reported a significantly improved financial performance for the year to end-February 2025, thanks to multi-year restructuring efforts and 'sustained emphasis' on capital discipline, operating leverage, and strategic alignment.

The workforce solutions provider operates throughout South Africa and Australia.

Adcorp posted a 60% rise in profit for the financial year, to over R1.4 billion.

Revenue increased by 2% to R13.2 billion for the year to 28 February.

Headline earnings per share (HEPS) were up to 135.4 cents from 83.8 cents a year ago. 

The group declared a final gross dividend of just over 50 cents per share from 24.2 cents in the prior period.

Adcorp Holdings CEO John Wentzel notes that their situation in Australia is different from the one in South Africa, with the performance they delivered here following a period of restructuring.

"We grew revenue in South Africa at about 2.1%... so we're not in the topline growth we'd like. I think the profit growth we saw at the end came from a focus into higher-margin outsourcing services where we see persistent demand."

John Wentzel, CEO - Adcorp Holdings

"However, the blue collar contingent business remains under pressure because of course the economy is not growing the way we would like, so it's been a combination of growth in staffing solutions as well as the consequences of restructuring, cost control and improved margins."

John Wentzel, CEO - Adcorp Holdings

Scroll up to the audio player to listen to the interview