Human resources specialist Adcorp Holdings expects to report lower earnings for the year ended February as the SA macroeconomic backdrop remained challenging and global staffing markets faced headwinds
Headline earnings per share (HEPS) from continuing operations will be between 76.3c and 91.1c, representing a decrease of between 38.4% and 48.4% compared with a year ago, the group said in a statement on Monday.
HEPS for total operations will be between 77.6c and 89.8c, representing an increase of between 27% and 47% compared with 61.1c a year ago.
Revenue is expected to increase by between 5.2% and 10.2%, and gross profit will decrease by between 1% and 3% from a year ago.
Both the SA and Australian businesses were in a net cash position, it said.
During the past year, reduced staffing demand, particularly within white-collar sectors, negatively affected Adcorp. This affected its professional services division in SA and, to a lesser extent, its professional services division in Australia.
“The persistent poor economic performance of SA has compounded these challenges,” it said.
It said despite these obstacles, Adcorp remains debt-free, and working capital has been very well managed.
“We have grown group sales, achieved record customer satisfaction scores, and our brands have garnered numerous awards. Employee engagement has lifted and staff turnover has fallen,” it said.
The decline in performance of its professional services division in SA masked solid performances in other divisions.
“We continue to witness resilience and strength across many areas of our business, most notably in our contingent staffing businesses in both SA and Australia,” it said.
Adcorp expects to release its results on May 31.
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