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Summarised consolidated results for the year ending 28 February 2021

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


Summarised consolidated results for the year ended 28 February 2021


  • Revenue from continuing operations decreased by 9.3% to R11,7 billion (2020: R12,9 billion)*
  • Operating profit from continuing operations before finance income and finance costs increased by 124.4% to R118 million (2020: R486 million loss)*
  • Cash generated by operations increased by 337.3% to R914 million (2020: R209 million)*
  • Unrestricted cash and cash equivalents from continuing operations increased to R407 million (2020: R314 million)
  • Interest-bearing debt, excluding leases, reduced to R456 million (2020: R1,002 million)
  • Net debt position improved to R49 million (2020: R688 million)**
  • Total earnings per share increased to 35.6 cents per share (2020: 561.6 cents loss per share)*
  • Total headline earnings per share increased to 34.2 cents per share (2020: 17.2 cents loss per share)*
  • BBBEE transaction successfully completed with Adcorp Workforce Solutions achieving Level 1 rating


** Net debt defined as interest-bearing debt excluding leases less unrestricted cash and cash equivalents from continuing operations

Shareholders are advised that the Group’s results contain prior year adjustments and that comparative balances accordingly differ to those previously reported. The prior year results have been adjusted for reinstatement of restricted cash and bonds in Angola, discontinued operations and a headline earnings adjustment due to a deferred tax adjustment related to a right-of-use asset impairment previously recognised.  Details are contained in the full announcement on the JSE and Adcorp websites.

We start by recognising that the Covid-19 pandemic is a human tragedy that has significantly impacted our clients and our people in both of Adcorp’s principal geographies, South Africa and Australia. Notwithstanding these challenges, Adcorp is in a stronger position than a year ago, with significantly lower debt, improved earnings and empowerment credentials as well as a clear strategy to grow profitably. This is testament to the resilience of our business model, our clients and our people.

Liquidity and cash flow

Following the liquidity management measures and interventions introduced to mitigate the impact of Covid-19, the second half of FY2021 has continued to demonstrate good working capital management and effective debt reduction.

Cash generated by operations increased to R914 million from R209 million in 2020. The group’s consolidated cash and cash equivalents (excluding restricted cash in Angola and cash in assets held-for-sale) totalled R407 million, increasing by R93 million from the prior year (2020: R314 million). The group’s Days Sales Outstanding (DSO) reduced from 43 days to 38 days.

Significant improvement in collections throughout the group and other cash positive initiatives resulted in group debt excluding finance leases decreasing to R456 million from R1 billion in 2020, with both South Africa and Australia contributing to the substantial degearing of the business.  Furthermore, the conclusion of the DARE disposal has enabled the Australian operations to repatriate the equivalent of R33 million to South Africa.

Group net debt excluding finance leases was R688 million as of 29 February 2020 and has reduced by R639 million to R49 million as of 28 February 2021**.


The board has decided that no dividend will be declared as the prevailing economic circumstances demand prudent cash resource management (2020: Nil).

Prospects and outlook

During the 2021 financial year, Adcorp made significant strides in stabilising and enhancing liquidity. The Group now has a strong balance sheet from which to drive future growth.

During the 2021 financial year, the Group successfully completed a BBBEE transaction and Adcorp Workforce Solutions achieved a Level 1 rating. This has greatly enhanced our competitiveness in the South African market. Furthermore, the Group made material upgrades to IT systems and processes, which will lead to a better customer experience and reduced cost. Finally, Adcorp has stable divisional management teams with clear strategies to drive profitable growth in their respective areas – supported by a lean central office.

Adcorp is a formidable workplace solutions company with blue-chip clients in South Africa and Australia. The work done in 2021 has left Adcorp with a stable platform for profitable growth going forward.


This short-form announcement is the responsibility of the directors and is only a summary of the information contained in the full announcement and does not contain full or complete details. The full announcement is available on the JSE website  and on the group’s website at Copies of the full announcement may also be requested from the group’s registered office and at the office of the group’s sponsors during office hours 8:00 – 16:00, Monday – Friday at no cost at the contact details below. Any investment decision should be based on the contents of the full announcement available on the JSE’s website and the group’s website.

Deloitte & Touche expressed an unmodified audit opinion on the audited consolidated financial statements in their report dated 31 May 2021. The report also includes communication of key audit matters. This announcement is extracted from audited results but is itself not audited. The full audit report and the full audited consolidated financial statements are available on the company’s website at .


On behalf of the board

GT Serobe                                                          J Wentzel                                  N Prendergast

Chairman                                                          Chief Executive Officer           Chief Financial Officer


31 May 2021


Dr John Wentzel (chief executive officer), Noel Prendergast (chief financial officer), Gloria Serobe^ (chairman), Monde Nkosi^, Sam Sithole^, Clive Smith^, Cecil Maswanganyi^, Melvyn Lubega^^, Ronel van Dijk^^, Prof Herman Singh^^, Tshidi Mokgabudi^^, Dr Phumla Mnganga^^,Michael Spicer^^


^^Independent non-executive

JSE Sponsor

PSG Capital 1st Floor Ou Kollege 35 Kerk Street Stellenbosch

Registered office

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

Company Secretary

Lisa Laporte Adcorp Place 102 Western Service Road Gallo Manor Ext 6

Transfer secretaries

4 Africa Exchange Registry Proprietary Limited Hill On Empire, 4th Floor, Building A, 16 Empire Road, Parktown

Investor relations

Singular Systems Michèle Mackey: +27 (0)10 003 0700



Deloitte & Touche 5 Magwa Crescent Midrand 2066



31 May 2021


PSG Capital


FY2021 Adcorp Booklet 

FY2021 Consolidated Adcorp Annual Financial Statements 

FY2021 Adcorp Annual Results Presentation 

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