SUMMARY OF THE UNAUDITED INTERIM FINANCIAL RESULTS AND DECLARATION OF INTERIM CASH DIVIDEND FOR THE SIX MONTHS ENDED 31 AUGUST 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 UNAUDITED INTERIM FINANCIAL RESULTS AND DECLARATION OF INTERIM CASH DIVIDEND FOR THE SIX MONTHS ENDED 31 AUGUST 2025
SALIENT HIGHLIGHTS
-Revenue decreased by 5.5% to R6,39 billion (2024: R6,77 billion)
-Gross profit reduced by 3.7% to R624,0 million (2024: R648,1 million)
-Gross profit margin improved to 9.8% (2024: 9.6%)
-Operating profit before finance income and costs increased by 70.7% to R72,2 million (2024: R42,3 million)
-Profit before taxation increased by 150.3% to R60,8 million (2024: R24,3 million)
-Profit after taxation increased by 85.5% to R54,5 million (2024: R29,4 million)
-Net unrestricted cash position of R201,5 million (2024: R206,4 million)
-Earnings and headline earnings per share increased to 53,0 cents per share (2024: 28,2 cents per share)
-Interim cash dividend of 24,77681 cents per share declared (2024: 13,40000 cents per share)
INTRODUCTION
The first half of the 2026 financial year reflected continued progress in strengthening Adcorp’s operating foundation amid a more challenging demand environment. Group revenue of R6,39 billion was moderately lower than the six months ended 31 August 2024 (“prior period”), impacted by the strengthening of the rand against the Australian dollar, softer volumes in certain customer sectors, and the deliberate exit of lower-margin activities.
In South Africa, persistent high unemployment continued to weigh on permanent placement services, while the impact of trade tariffs on some automotive clients and delays in the award of new contracts dampened activity levels. In Australia, demand in the protein-processing sector softened, although the contingent staffing portfolio remained resilient across other sectors.
Despite these external factors, profitability improved significantly year-on-year, underpinned by stable gross margins, continued cost discipline, and operating efficiencies achieved through earlier restructuring.
The Group remains well capitalised, with sufficient liquidity headroom and no covenant pressure. Adcorp enters the second half of the year with a solid platform for continued earnings resilience and operational stability.
Financial overview
Group revenue decreased by 5.5% to R6,39 billion (2024: R6,77 billion) for the six months ended 31 August 2025. On a constant-currency basis, revenue declined by a more moderate 3.2%, reflecting commercial headwinds and subdued demand experienced across the workforce industry during the period. The Group displayed resilience in maintaining a solid gross profit
margin of 9.8%, an increase from the prior period of 9.6%, despite an overall decrease in gross profit of 3.7% to R624,0 million (1.9% on a constant-currency basis).
Profit before tax for the period increased by 150.3% to R60,8 million (2024: R24,3 million). The profit before tax for the prior year included once-off transformation costs of R25,6 million, which were not incurred in the current period.
Cash generated from operations before working-capital movements increased to R126,9 million (2024: R93,5 million). After working-capital changes, a net outflow of R134,6 million was recorded, driven by higher utilisation arising from an increase in days sales outstanding to 40 days from 35 days in the prior period. Consolidated net cash (excluding restricted cash held in Angola of R51,6 million) closed at R201,5 million (2024: R206,4 million), after dividend payments to shareholders amounting to R52,2 million during the period.
The Group’s effective tax rate was 10.6%, primarily reflecting the utilisation of previously unrecognised assessed losses and the benefit of Employment Tax Incentive and learnership credits. At 31 August 2025, unrecognised tax losses totalled R694,4 million (2024: R775,8 million), while recognised tax losses amounted to R231,8 million (2024: R244,3 million).
DIVIDEND DECLARATION
Shareholders are hereby advised that the board of directors of Adcorp has approved and declared an interim gross dividend of 24,77681 cents per ordinary share (2024: 13,40000 cents per ordinary share), from income reserves, for the six months ended 31 August 2025.
The dividend is subject to a South African dividend withholding tax rate of 20%, resulting in a net dividend of 19,82145 cents per ordinary share (2024: 10,72000 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 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 for the payment of the dividend:
| Publication of declaration data and finalisation information | Thursday, 30 October 2025 |
| Last day to trade cum dividend | Tuesday, 13 January 2026 |
| Securities commence trading ex dividend | Wednesday, 14 January 2026 |
| Record date for purposes of determining the registered holders of ordinary shares to participate in the dividend at close of business on | Friday, 16 January 2026 |
| Payment date | Monday, 19 January 2026 |
Share certificates may not be dematerialised or rematerialised between Wednesday, 14 January 2026 and Friday, 16 January 2026, both dates inclusive.
Outlook
Trading conditions are expected to remain mixed across markets, but a gradual improvement in client sentiment is anticipated during the second half of the year.
In South Africa, expectations of stronger GDP growth should translate into increased demand for workforce solutions, particularly in logistics, manufacturing and consumer-facing sectors. Consistent demand in blue-collar staffing continues to provide a stable base of activity, while new contract opportunities in staffing solutions remain encouraging.
In Australia, contingent staffing demand is expected to remain steady, with diversification into healthcare, aged care and hospitality helping to offset softness in the protein-processing sector. The professional services transformation completed last year positions the business to benefit from greater operational leverage and a focus on higher-margin services.
Management’s priorities in the second half will centre on strengthening cash conversion, embedding further cost efficiencies, and maintaining margin discipline while selectively pursuing growth in higher-value, recurring service areas. The Group remains confident in its ability to sustain operational resilience, preserve balance-sheet strength, and position for long-term value creation.
SHORT-FORM ANNOUNCEMENT
This short-form announcement is the responsibility of the directors and is only a summary of the information contained in the full unaudited interim results for the six months ended 31 August 2025 (“full interims”). The full interims are available on the JSE cloudlink at https://senspdf.jse.co.za/documents/2025/JSE/ISSE/ADR/HY2026.pdf and on the Group’s website at https://www.adcorpgroup.com/investor-news/fy2026-unaudited-adcorp-group-interim-results/.
Any investment decision should be based on the contents of the full interims 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 full interims for the six months ended 31 August 2025, 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
30 October 2025
Directors
Ms Gloria Serobe* (Chairman)
Mr Melvyn Lubega**
Dr Phumla Mnganga** (Lead independent)
Ms Tshidi Mokgabudi**
Mr Noel Prendergast (Chief Financial Officer)
Mr Robert Radley**
Mr Herman Singh**
Mr Clive Smith*
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
Head of Investor Relations and Company Secretary
Charissa de Jager, Tel: +27 (0)10 800 0000, Direct: +27(0)10 800 0786; Email: charissa.dejager@adcorpgroup.com
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, 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