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Johannesburg - Listed workforce management group, Adcorp Holdings announced on Thursday that group revenue of R5.7bn for the interim six month period ended August 31 2013 was 41% ahead of revenue generated in the prior year.
Normalised earnings of 176.5 cents per share were 6% ahead of those reported for the prior year.
The group declared an interim dividend of 60c per share.
Normalised Ebitda for the period was R247m compared to R196m in 2012. Normalised earnings of R161.1m were some 25% up on the prior year's comparative figure.
“Much of the momentum achieved by the business in the past financial year has been carried through to the current reporting period despite less than buoyant underlying trading conditions,” said Adcorp CEO Richard Pike .
Headline earnings per share for the period were 22.4c compared to 127.1c in 2012.
These were adversely affected by a one-off share based payment charge of R87m relating to the implementation of a new, 10-year Broad Based Black Economic Empowerment (B-BBEE) transaction.
This charge does not affect the group’s cash flows.
“The blue collar operations of the group continued to perform well as did the IT contracting business of Paracon, its associate investment, Nihilent, the white collar business of Quest as well as the permanent recruitment business of DAV”, said Pike.
The business process outsourcing (BPO) business of FMS continued to experience difficult trading conditions.
The training operations were adversely affected by an inability to register learnerships due to problems experienced with the administration of the relevant Seta.
Pike said the group’s training operations have picked up business in other parts of the African continent, which holds much promise.
"The South African labour market continues to be characterised by unrest, strikes, above inflationary wage demands and trade union infighting," said Pike.
"Whilst these trends are negative for overall employment prospects in a country already burdened by alarmingly high levels of unemployment, it does potentially favour contracting and outsourcing as alternatives to direct employment."
He said the recently acquired Australian IT contracting business, Paxus, has settled well in to the Group although trading conditions in the Australian IT jobs’ market remain relatively challenging.
The group’s Africa business continues to show good growth and to perform well.
The business is focused primarily in the areas of oil, gas, mining and infrastructure and is now a major contributor to group profits.
“The staffing industry has seen various substantial changes and evolving macro trends over the recent past," said Pike.
"These include generally increasing tensions between employers and employees and the introduction of more restrictive and complex legislation."
He has also noted a move by large employers to more cost effectively manage their workforce by appointing large service providers to provide an all-encompassing staffing solution.
“Adcorp is well positioned to become a Southern hemisphere and an emerging market, independent player of consequence.
“Given the favourable macro environment and the Group’s strong strategic response to these emerging, global industry trends, Adcorp is particularly well positioned for the future”, said Pike.
- Fin24
Normalised earnings of 176.5 cents per share were 6% ahead of those reported for the prior year.
The group declared an interim dividend of 60c per share.
Normalised Ebitda for the period was R247m compared to R196m in 2012. Normalised earnings of R161.1m were some 25% up on the prior year's comparative figure.
“Much of the momentum achieved by the business in the past financial year has been carried through to the current reporting period despite less than buoyant underlying trading conditions,” said Adcorp CEO Richard Pike .
Headline earnings per share for the period were 22.4c compared to 127.1c in 2012.
These were adversely affected by a one-off share based payment charge of R87m relating to the implementation of a new, 10-year Broad Based Black Economic Empowerment (B-BBEE) transaction.
This charge does not affect the group’s cash flows.
“The blue collar operations of the group continued to perform well as did the IT contracting business of Paracon, its associate investment, Nihilent, the white collar business of Quest as well as the permanent recruitment business of DAV”, said Pike.
The business process outsourcing (BPO) business of FMS continued to experience difficult trading conditions.
The training operations were adversely affected by an inability to register learnerships due to problems experienced with the administration of the relevant Seta.
Pike said the group’s training operations have picked up business in other parts of the African continent, which holds much promise.
"The South African labour market continues to be characterised by unrest, strikes, above inflationary wage demands and trade union infighting," said Pike.
"Whilst these trends are negative for overall employment prospects in a country already burdened by alarmingly high levels of unemployment, it does potentially favour contracting and outsourcing as alternatives to direct employment."
He said the recently acquired Australian IT contracting business, Paxus, has settled well in to the Group although trading conditions in the Australian IT jobs’ market remain relatively challenging.
The group’s Africa business continues to show good growth and to perform well.
The business is focused primarily in the areas of oil, gas, mining and infrastructure and is now a major contributor to group profits.
“The staffing industry has seen various substantial changes and evolving macro trends over the recent past," said Pike.
"These include generally increasing tensions between employers and employees and the introduction of more restrictive and complex legislation."
He has also noted a move by large employers to more cost effectively manage their workforce by appointing large service providers to provide an all-encompassing staffing solution.
“Adcorp is well positioned to become a Southern hemisphere and an emerging market, independent player of consequence.
“Given the favourable macro environment and the Group’s strong strategic response to these emerging, global industry trends, Adcorp is particularly well positioned for the future”, said Pike.
- Fin24
