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Trading statement for the half year ended 31 August 2016
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”)
TRADING STATEMENT FOR THE HALF YEAR ENDED 31 AUGUST 2016
In terms of the Listings Requirements of the JSE Limited, companies are required to publish a trading
statement as soon as they are reasonably certain that the financial results for the period to be
reported upon next will differ by at least 20% from the financial results for the previous
corresponding period.
Adcorp shareholders are advised that for the half year ended 31 August 2016 earnings per share
(“EPS”) are expected to decrease by 8% to 12% and headline earnings per share (“HEPS”) are
expected to decrease by 36% to 40%, compared to the corresponding period. EPS and HEPS are
therefore expected to be between 77 cents and 80 cents per share and between 75 cents and 80
cents per share, respectively, compared to EPS of 87.4 cents and HEPS of 125.2 cents in the
corresponding period.
The expected decrease in EPS and HEPS is primarily due to the negative affect of an unrealised foreign
exchange year-on-year swing from gains to losses of R40 million as well as the impact of once-off
transaction costs.
Foreign exchange gains and losses emanate primarily from the Group’s African operations whereby
the Group’s South African Rand reporting currency has strengthened against many of the underlying
currencies of those African countries where the Group has operations.
The first full period inclusion of the lower than expected contribution from Dare and the
underperformance from the group’s African operations (excluding South Africa) also contributed to
the lower year-on-year performance.
On a normalised trading position normalised earnings per share for the half year ended 31 August
2016 are expected to be between 17% and 20% lower compared to the corresponding, comparative
reporting period. As a result, normalised earnings per share are expected to be between 126 cents
and 131 cents, compared to 157.3 cents in the corresponding period.
Excluding the negative impact of the unrealised foreign exchange swing from gains to losses
described above, with the exception of those businesses directly impacted by depressed global oil
prices namely, the Group’s African operations (excluding South Africa) as well as Dare, general trading
conditions have improved compared to the prior financial year whereby previous volume losses
resulting from major changes to South African labour laws continue to recover well. Strong
performances have also been achieved by the Group’s Australian subsidiaries, Paxus and LSA.
Accordingly, excluding the negative impact of the unrealised foreign exchange swing from gains to
losses, the Group’s normalised trading profits are expected to reflect modest year-on-year growth
compared to the corresponding, comparative reporting period.
The Group’s cash generative performance remains sound. In this regard, the Group has been able to
de-gear its net debt position compared to the previous financial year end’s debt to equity ratio.
The financial results on which this trading statement have been based have not been reviewed or
reported on by the Company`s auditors. The financial results of the Company will be published on or
about 20 October 2016.
For further information, please contact:
Anthony Sher
Chief Financial Officer
Tel: (011) 244-5316
Email: anthonys@adcorp.co.za
14 October 2016
Bryanston
Sponsor: Deloitte & Touche Sponsor Services (Pty) Ltd
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