Adcorp (ADR) is an employment company with subsidiaries operating in South Africa and Australia. Managerially, efforts have been made in (1) defining and focusing on the core business, (2) reducing costs, (3) strengthening the brand, and (4) transforming the culture.
In its results for the year to 29th February 2024, the company reported revenue from continuing operations up 7.7% and headline earnings per share (HEPS) of 83.8c compared with 61.1c in the previous year. The company said, "Persistent load shedding and other infrastructure issues in South Africa led companies to seek more flexible staffing solutions, thereby boosting demand for our services. The Australian market continues to grapple with blue-collar labour shortages, which in turn has driven demand for Adcorp's contingent staffing offering."
Technically, the share has been drifting sideways and downwards for the past 40 months, although the prospect of a special dividend saw the share jump in late May 2023. Obviously, the high unemployment level in the economy had negatively impacted this business, and COVID-19 made the situation worse. It has suffered from the difficult conditions in the South African economy, but the new management team appears to be making the right moves.
On a P:E of 6.05 and a dividend yield (DY) of 6.21, we believe that the share is cheap and has potential.
In its results for the year to 29th February 2024, the company reported revenue from continuing operations up 7.7% and headline earnings per share (HEPS) of 83.8c compared with 61.1c in the previous year. The company said, "Persistent load shedding and other infrastructure issues in South Africa led companies to seek more flexible staffing solutions, thereby boosting demand for our services. The Australian market continues to grapple with blue-collar labour shortages, which in turn has driven demand for Adcorp's contingent staffing offering."
Technically, the share has been drifting sideways and downwards for the past 40 months, although the prospect of a special dividend saw the share jump in late May 2023. Obviously, the high unemployment level in the economy had negatively impacted this business, and COVID-19 made the situation worse. It has suffered from the difficult conditions in the South African economy, but the new management team appears to be making the right moves.
On a P:E of 6.05 and a dividend yield (DY) of 6.21, we believe that the share is cheap and has potential.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.