SALIENT HIGHLIGHTS

• Revenue decreased by 1% to R6,26 billion (2025: R6,39 billion)
• Gross profit reduced marginally by 6% to R620,2 million (2025: R624,0 million)
• Gross profit margin improved to 9.9% (2025: 9.8%)
• EBITDA-to-net revenue conversion ratio improved to 17.5% (2025: 15.4%)*
• Operating profit before finance income and costs increased by 9% to R90,2 million (2025: R72,2 million)
• Profit before taxation increased by 28.8% to R78,3 million (2025: R60,8 million)
• Profit after taxation increased by 9% to R62,6 million (2025: R54,5 million)
• Net unrestricted cash position of R174,2 million (2025: R201,5 million)
• Earnings per share increased by 14.3% to 60,6 cents per share (2025: 53,0 cents per share)
• Headline earnings per share increased by 14.2% to 60,5 cents per share (2025: 53,0 cents per share)
• Interim cash dividend of 28,46216 cents per share declared (2025: 24,77681 cents per share)

 

* Net revenue represents gross profit before deducting allocated direct salaries.

 

Overview

 

Building on the foundations established following the business turnaround, our focus remains on improving earnings quality and developing a more efficient, technology-enabled workforce solutions business. Growth in Staffing Solutions supports Horizon’s emphasis on integrated, higher-value services. Professional Services Australia improved profitability, while Contingent Staffing South Africa delivered revenue and gross profit growth. These positive developments were partly offset by continued challenges in Professional Services South Africa and Contingent Staffing Australia, highlighting the need for stronger commercial performance across these two divisions. Performance across the portfolio remained mixed, reinforcing the importance of focused execution and commercial discipline.

 

The Group’s balance sheet strength provides a buffer against headwinds and supports selective investment. Adcorp remains focused on improving cash conversion, strengthening its client offering and using technology to reduce the cost to serve, while building the capabilities needed to create sustainable value for clients, employees and shareholders.

 

Financial overview

 

Revenue decreased by 2.1% to R6,26 billion (2025: R6,39 billion), reflecting softer volumes in certain customer sectors and the deliberate exit from lower-margin activities. Despite the decline in revenue, gross profit remained broadly in line with the prior period, decreasing by only 0.6% to R620,2 million (2025: R624,0 million). Gross profit margin improved from 9.8% to 9.9%.

 

The stability in gross profit, combined with continued cost discipline, supported a significant improvement in operating profitability. Operating expenses decreased by 4.0% to R534,5 million (2025: R556,7 million), contributing to a 15.4% increase in EBITDA to R124,2 million (2025: R107,6 million) and to a 24.9% increase in operating profit to R90,2 million. Profit for the period rose by 14.9% to R62,6 million (2025: R54,5 million). Basic earnings per share increased by 14.3% to 60,6 cents, with headline earnings per share of 60,5 cents up by 14.2%. The Group’s EBITDA-to-net revenue conversion ratio improved to 17.5% for the six months ended 31 August 2026, compared to 15.4% in the prior period.

 

The effective tax rate increased to 20.0% from 10.4% in the prior period. The Group continues to benefit from employee tax incentives, learnership allowances and the utilisation of assessed losses. However, lower utilisation of prior-year assessed losses contributed to the higher effective tax rate. Further utilisation of currently recognised assessed losses is anticipated during the second half of the financial year.

 

Cash generated from operations before working-capital movements increased by 2.8% to R130,5 million (2025: R126,9 million). Working-capital movements resulted in a cash outflow of R183,5 million during the first half, compared with R261,4 million in the prior period, consistent with the Group’s seasonal working-capital cycle. Reported cash balances are also influenced by the timing of customer receipts and payments around reporting dates, with a partial unwind of the working-capital investment anticipated in the second half. The Group maintained its average collection period at 40 days.

 

Net cash, excluding restricted cash and lease liabilities, was R174,2 million (2025: R201,5 million). The Group maintains a strong liquidity position.

 

DIVIDEND DECLARATION

 

Shareholders are hereby advised that the board of directors of Adcorp has approved and declared an interim gross dividend of 28,46216 cents per ordinary share (2025: 24,77681 cents per ordinary share), from income reserves, for the six months ended 31 August 2026.

 

The dividend is subject to a South African dividend withholding tax rate of 20%, resulting in a net dividend of 22,76973 cents per ordinary share (2025: 19,82145 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 report, the Company has 109 880 974 ordinary shares of no par value 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 relating to the dividend:

 

Publication of declaration data and finalisation information	Thursday, 29 October 2026
Last day to trade cum dividend	Tuesday, 12 January 2027
Securities commence trading ex dividend	Wednesday, 13 January 2027
Record date for purposes of determining the registered holders of ordinary shares to participate in the dividend at close of business on	Friday, 15 January 2027
Payment date	Monday, 18 January 2027

 

Share certificates may not be dematerialised or rematerialised between Wednesday, 13 January 2027 and Friday, 15 January 2027, both dates inclusive.

 

Outlook

 

The operating environment is expected to become more demanding in the second half, weighing on client activity and demand for workforce solutions. Our response will remain disciplined, focusing on cash preservation, improved cash conversion and cost alignment. Commercial decisions will prioritise profitable client relationships and sustainable margins. We will continue executing the Adcorp Horizon strategy, investing selectively in technology to improve efficiency, reduce costs and create revenue opportunities, while pursuing geographic expansion guided by client demand.

 

SHORT-FORM ANNOUNCEMENT

 

This short-form announcement is the responsibility of the directors and is only a summary of the information contained in the unaudited interim results for the six months ended 31 August 2026 (“interim results”). The interim results are available on the JSE cloudlink at https://senspdf.jse.co.za/documents/2026/jse/isse/ADR/HY2027.pdf

and on the Group’s website at https://www.adcorpgroup.com/investors/financials/.

Any investment decision should be based on consideration of the information in the interim results available on the JSE’s cloudlink and the Group’s website, as the information in this short-form announcement does not provide all of the details.

This short-form announcement and the interim results, from which the information contained in this short-form announcement was extracted, have not been audited or reviewed by the Company’s auditors.

 

On behalf of the board
Ms Gloria Serobe	Dr John Wentzel	Mr Noel Prendergast
Chairman	Chief Executive Officer	Chief Financial Officer
29 October 2026
Directors

 

Ms Gloria Serobe* (Chairman)

Mr Melvyn Lubega**

Ms Tshidi Mokgabudi**

Mr Noel Prendergast (Chief Financial Officer)

Mr Robert Radley**

Mr Vincent Raseroka** (appointed 1 July 2026)

Mr Herman Singh**

Ms Alupheli Sithebe** (appointed 1 July 2026)

Ms Ronel van Dijk**

Dr John Wentzel (Chief Executive Officer)

 

*Non-executive

** Independent non-executive

 

JSE Sponsor

Valeo Capital Proprietary Limited, Unit G02, Skyfall Building, De Beers Ave, Paardevlei, 7130, Tel: +27 (0)21 851 0091, Email: info@valeocapital.co.za

Registered office

Adcorp Holdings Limited, Adcorp Place, 102 Western Service Road, Gallo Manor Ext 6, Johannesburg, 2191

 

Chief Governance Officer and Company Secretary

Charissa de Jager, Tel: +27 (0)10 800 0786, Email: charissa.dejager@adcorpgroup.com

 

Transfer secretaries

CTSE Registry Services (Pty) Ltd, 5^th Floor, Block B, The Woodstock Exchange Building, 66-68 Albert Road, Woodstock, Cape Town, South Africa, 7915, Tel +27 (0)11 100 8352, Email: adcorp@4axregistry.co.za

External auditors

KPMG Inc., KPMG Crescent, 58 Empire Road, Parktown, Johannesburg, 2193, Tel: +27(0)11 647 7111