Update on AllaboutXpert Australia

ADCORP HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
Registration number: 1974/001804/06
Share code: ADR
ISIN: ZAE000000139
(“Adcorp” or “the Company”)

UPDATE ON ALLABOUTXPERT AUSTRALIA

Shareholders are referred to the trading statement released by Adcorp on SENS on 19 October 2022 (“Trading Statement”) and the unaudited interim financial results of the Company for the six months ended 31 August 2022, published on 31 October 2022 (“Interim Results”).

As disclosed in the Trading Statement and the Interim Results, allaboutXpert Australia Proprietary Limited (“aaX”), a subsidiary of Adcorp Holdings Australia (“AHA”), ultimately held by Adcorp, experienced considerable losses on contracts which required extensive investment to remediate. The aaX brand is not core to the Adcorp staffing business and therefore a programme to market the aaX assets and to identify potential buyers was launched and aaX was classified as a discontinued operation in terms of IFRS 5: Noncurrent Assets Held for Sale and Discontinued operations in the Interim Results.

Despite the best efforts of the aaX management team in terms of the aforementioned programme to market the assets for sale, the board of directors of aaX (“aaX Board”) have not secured any binding offers or expressions of interest for the sale of the assets, which they consider fair and reasonable. Given the current financial position and liquidity constraints of aaX, the aaX Board, after taking extensive legal advice, resolved to place the company in voluntary administration on 12 December 2022 and appointed Glenn Livingstone and Alan Walker of WLP Restructuring as joint administrators to aaX (on a joint and several basis), in terms of the laws of Australia on 13 December 2022.

aaX is a negligible part of the Adcorp group, and on a consolidated basis, it contributed less than 1.7% of the group’s revenue for the six months ended 31 August 2022. AHA remains both solvent and liquid and its continuing operations are unaffected by this development. The voluntary administration process will aim to maximise the chances of preserving the business of aaX and optimise the return for its creditors and shareholders.

Johannesburg
14 December 2022

Sponsor
PSG Capital