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Summary of the audited consolidated results and final cash dividend declaration for the year ended 28 February 2025
ADCORP HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
Registration number: 1974/001804/06
Share code: ADR
ISIN: ZAE000000139
("Adcorp" or "the Company" or "the Group")
SUMMARY OF THE AUDITED CONSOLIDATED RESULTS AND FINAL CASH DIVIDEND
DECLARATION FOR THE YEAR ENDED 28 FEBRUARY 2025
SALIENT HIGHLIGHTS
- Revenue increased by 2.0% to R13,2 billion (2024: R13,0 billion)
- Gross profit increased by 3.5% to R1,30 billion (2024: R1,26 billion)
- Operating profit increased by 33.3% to R171,6 million (2024: R128,7 million)
- Profit for the year increased by 60.0% to R140,9 million (2024: R88,0 million)
- Net unrestricted cash position of R442,1 million (2024: R204,2 million)
- Earnings per share increased to 134,7 cents per share (2024: 83,8 cents per share)
- Headline earnings per share increased to 135,4 cents per share (2024: 83,8 cents per
share)
- Final gross dividend declared of 50,01817 cents per share (2024: 24,2 cents per share)
- B-BBEE level 1 rating in South Africa maintained
PERFORMANCE OVERVIEW
This financial year marked a period of disciplined execution and operational consolidation for
Adcorp. In the face of persistent macroeconomic volatility in both South Africa and Australia,
the Group delivered a significantly improved financial performance, a direct outcome of multi-
year restructuring efforts and sustained emphasis on capital discipline, operating leverage,
and strategic alignment.
Adcorp achieved a substantial uplift in earnings, with headline earnings per share from
operations increasing by more than 60.0% year-on-year. This result was driven by modest
2.0% revenue growth, enhanced gross profit margins, and tightly contained operating costs,
which remained flat despite inflationary and operational headwinds in both geographies.
The Group enters the next financial year from a position of financial strength, with a clean
balance sheet, robust liquidity position, and momentum across high-potential growth verticals.
Our ability to deliver resilient earnings and strong cash conversion positions us to fund growth
and shareholder returns with agility and confidence.
FINANCIAL OVERVIEW
Group revenue increased by 2,0% from R13,0 billion to R13,2 billion for the year, or 3,4% in
constant currency. This marks the third consecutive year of revenue growth, an achievement
that stands out amid widespread declines across global workforce solutions providers. Gross
profit improved by 3,5% (4,7% in constant currency) from R1,26 billion to R1,30 billion, driven
primarily by improved gross margin performance in the second half, culminating in a year-end
margin of 9,8%.
Profit for the year increased markedly by 60.0%, from R88,0 million to R140,9 million. This
strong performance reflects the growth in gross profit and the Group's disciplined cost control,
with operating expenses held flat year-on-year despite inflationary pressures and elevated
activity levels.
Cash generated from operations before working capital movements rose to R272,5 million
(2024: R247,9 million). Effective working capital management yielded a net inflow of R115,9
million. The Group's days sales outstanding (DSO) remained stable at 37 days. Consolidated
net cash (excluding restricted cash in Angola) closed at R442,1 million (2024: R204,1 million),
after share repurchases of R6,8 million and dividend payments of R39,2 million, in line with
the Group's capital allocation framework.
The Group's effective tax rate was a credit of 2,6%, primarily due to a non-recurring reversal
of deferred tax liabilities, utilisation of assessed losses, and tax incentives related to ETI and
learnerships. As at 28 February 2025, unrecognised tax losses totalled R743,1 million (2024:
R788,9 million), while recognised losses amounted to R217,1 million (2024: R223,9 million).
Liquidity and cash flow
The Group remains in a strong liquidity position, with R442,1 million in net cash (excluding
restricted Angola balances), no drawn debt facilities, and access to committed undrawn lines.
South African facilities include a R150 million revolving credit facility, a R100 million overdraft
facility, and a R100 million accordion facility maturing in September 2025. A new facility is
currently under negotiation. The Australian borrowing base facility comprises a working capital
and set-off facility totalling AU$23 million.
DIVIDEND DECLARATION
Shareholders are hereby advised that the board of directors ("the Board") of Adcorp has
approved and declared a final gross dividend of 50,01817 cents per ordinary share (2024: final
gross dividend of 24,2 cents per ordinary share) from income reserves, for the year ended 28
February 2025.
The dividend is subject to a South African dividend withholding tax rate of 20%, resulting in a
net final dividend of 40,01453 cents per ordinary share (2024: net final dividend of 19,36 cents
per ordinary share), unless the shareholder is exempt from paying dividend tax or is entitled
to a reduced rate of dividend tax in terms of an applicable double-taxation agreement.
As at the date of this announcement, the Company has 109 880 974 ordinary shares in issue.
The Company's income tax reference number is 9233680710.
Salient dates and times
Shareholders are hereby advised of the following salient dates and times for the payment of
the dividend:
Publication of declaration data and finalisation information Thursday, 29 May 2025
Last day to trade cum dividend Tuesday, 12 August 2025
Securities commence trading ex dividend Wednesday, 13 August 2025
Record date for purposes of determining the registered Friday, 15 August 2025
holders of ordinary shares to participate in the dividend
at close of business on
Payment date Monday, 18 August 2025
Share certificates may not be dematerialised or rematerialised between Wednesday 13 August
2025 and Friday, 15 August 2025, both dates inclusive.
OUTLOOK
Adcorp enters FY26 with strengthened financials and a clear strategic agenda. Following a
year of disciplined execution, the Group is focused on driving margin improvement, growing
higher-margin outsourcing services, and advancing its transition into a technology-enabled
workforce solutions provider.
Key investment will continue into AI and automation across payroll, workforce matching, and
operational processes - a core pillar of Adcorp's scalable service model. Geographically, the
Group is expanding its aged care and healthcare staffing capabilities in Australia and growing
its presence in South African outsourced offerings. In parallel, Adcorp is extending its footprint
into the rest of Africa, aligned to the needs of global clients seeking integrated, compliant
staffing solutions across the continent.
The Group maintains a strong net cash position with no drawn debt, supporting its capital
allocation framework—including a consistent dividend policy (2x cover), disciplined working
capital management, and opportunistic share buybacks where liquidity allows.
While macroeconomic uncertainty remains a factor, particularly due to global trade tensions
and local market constraints. Adcorp's decentralised model, sector diversification, and cash-
backed balance sheet provide resilience. The Group remains well-positioned to pursue
sustainable growth and value creation through both operational execution and potential
strategic alignment.
SHORT-FORM ANNOUNCEMENT
This short-form announcement is the responsibility of the directors and is only an extract of
the information contained in the audited consolidated annual financial statements of the Group
for the year ended 28 February 2025 ("Annual Financial Statements") and does not contain
full or complete details. The Annual Financial Statements are available on the JSE cloudlink
at https://senspdf.jse.co.za/documents/2025/jse/isse/ADR/YE2025.pdf and on the Company's
website at https://www.adcorpgroup.com/investor-news/group-financials/fy25-adcorp-group-
consolidated-financial-statements/.
Any investment decision should be based on the contents of the Annual Financial Statements
available on the JSE's cloudlink and the Group's website, as a whole, as the information in
this announcement does not provide all of the details.
The Annual Financial Statements, from which the information contained in this short-form
announcement was extracted, have been audited and reviewed by the Company's auditors,
KPMG Inc., who expressed an unmodified audit opinion on the Annual Financial Statements
in their report dated 29 May 2025. The report also includes communication of key audit
matters. Key audit matters are those matters that, in their professional judgement, were of
most significance in their audit of the Annual Financial Statements. The full audit report along
with the Annual Financial Statements are available for viewing on the Group's website.
On behalf of the Board
GT Serobe Dr J Wentzel N Prendergast
Chairman Chief Executive Officer Chief Financial Officer
29 May 2025
Directors
Executive
Dr J Wentzel (Chief Executive Officer)
N Prendergast (Chief Financial Officer)
Non-executive
GT Serobe (Chairman)
C Smith
T Olls (Resigned effective 1 January 2025)
Independent non-executive
M Lubega
Dr P Mnganga (Lead Independent)
T Mokgabudi
H Singh
R van Dijk
Alternative non-executive
S Sithole (Resigned effective 1 January 2025)
Sponsor
Valeo Capital Proprietary Limited, Unit G02, Skyfall Building, De Beers Ave, Paardevlei, 7130
Registered office
Adcorp Holdings Limited, Adcorp Place, 102 Western Service Road, Gallo Manor Ext 6
Head of Investor Relations and Group Secretary
Charissa de Jager, Adcorp Place, 102 Western Service Road, Gallo Manor Ext 6
Transfer secretaries
CTSE Registry Services (Pty) Ltd, 5th Floor, Block B, The Woodstock Exchange Building, 66-
68 Albert Road, Woodstock, Cape Town South Africa, 7915
External auditors
KPMG Inc., 58 Empire Road, Parktown, Johannesburg, 2193
Date: 29-05-2025 09:30:00
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