ADCORP REPORTS STABLE FY2026 PERFORMANCE DESPITE CONSTRAINED MARKET CONDITIONS
28 May 2026
Johannesburg, South Africa – Adcorp Holdings Limited today announced results for the year ended 28 February 2026, reporting stable profitability, improved earnings quality and continued strong cash generation despite subdued market conditions across key sectors in South Africa and Australia.
Revenue declined 5.9% to R12.46 billion (4.1% in constant currency), reflecting softer client demand, lower discretionary hiring activity and the roll-off of selected contracts during the year. Despite the lower revenue base, operating profit increased to R177.3 million from R171.6 million in the prior year, supported by disciplined cost management, improved margin quality and operational efficiencies across the Group. Headline earnings per share increased 13.0% to 153.0 cents, while gross margin improved to 9.9% from 9.8% in the prior year.
“The Group delivered an effective performance in a constrained operating environment,” said Dr John Wentzel, Chief Executive Officer. “During the year we remained focused on earnings quality, profitability, cash generation and disciplined execution rather than pursuing revenue growth at the expense of margins or returns.” The Group maintained a strong balance sheet and ended the year with a net cash position of R342.1 million. Adcorp remains ungeared and internally funded, with strong operating cash generation.
Following the payment of an interim dividend of 22.1 cents per share, the Board has declared a final dividend of 49.6 cents per share for FY2026. The total dividend for the year therefore amounts to 71.7 cents per share, up 13.1% from the prior year and consistent with the Group’s long-standing capital allocation framework. South African Contingent Staffing operations delivered a stable performance despite subdued economic conditions, while Staffing Solutions South Africa continued achieving strong operational momentum supported by growth within outsourcing and customer engagement services.
Professional Services operations in both South Africa and Australia remained impacted by softer hiring activity, lower discretionary client spend and subdued ICT demand. In Australia, the Contingent Staffing business experienced lower revenue following the exit of a significant client, although gross margins improved materially following repositioning toward higher-quality client relationships.
Looking ahead, Adcorp expects market conditions to remain uncertain, with geopolitical instability, inflationary pressures and elevated interest rates continuing to influence workforce demand across several sectors.
“Management remains focused on disciplined execution, cost control, cash generation and maintaining a strong balance sheet,” said Wentzel. “We will also continue investing selectively in strategic initiatives that strengthen the long-term competitiveness and operational capability of the Group.”
About Adcorp Holdings Limited
Adcorp Holdings Limited is a leading workforce solutions company operating in South Africa and Australia. The Group employs more than 1,600 permanent staff and deploys approximately 41,000 contingent workers daily. Adcorp is the largest staffing group in Africa and is ranked among the top 100 staffing companies globally.