Revenue increased from R5 050 million to R5 384 million in 2011.Gross profit increased to R1 119 million (2010: R1 097 million) and operating profit decreased to R157.7 million (2010: R166.5 million). Profit attributable to ordinary shareholders increased to R115.7 million (2010: R104.3 million). Headline earnings per share decreased marginally to 195.7cps (2010: 195.9cps).
A final dividend of 121cps was declared for the period under review.
Whilst, on the face of it, the labour market in which we primarily operate appears to be relatively stagnant due to an inability of the economy to create jobs on any meaningful scale, coupled with the regulatory challenges faced by the temporary employment services industry, these factors both contribute to providing the Adcorp Group with major opportunities. There are undoubtedly certain good pockets of opportunity which the group is able to take advantage of with regard to the placement of scarce skills, the training of such skills, the opportunity to present alternative innovative value propositions to clients and the opportunities provided by the labour broking debate to engage clients at a strategic level as opposed to merely at a transactional level.
The greater the level of legislative complexity and regulation, the more it favours a group such as Adcorp which has the sophistication, reputation, know- how and financial capability to deal with such complexity. These opportunities coupled with the adoption of technology as an enabler in the staffing space whereby, the Adcorp Group leads the way in this regard, all contribute to a high level of optimism with regard to the future prospects of the group. Strategically, the group is focused on managing its costs, driving economies of scale, delivering value for its clients, seeking out beneficial acquisitions and increasing the level of sophistication and technological advancement it applies in its day to day operations. In addition, the group has a strong and robust balance sheet. As such, the group is particularly well positioned for the future.