Adcorp Holdings Limited · JSE:ADR
Adcorp — FY2026 Earnings Presentation
40 slides from Adcorp's earnings presentation, Feb 28, 2026
Slide 1: Annual Results for the year ended 28 February 2026
ANNUAL RESULTS for the year ended 2026 28 FEBRUARY 2026 Connecting human potential, building a sustainable future
Slide 2: Disclaimer
Disclaimer The statements contained herein may contain certain forward-looking statements relating to the Group that are based on the beliefs of the Group’s management as well as assumptions made by and information currently available to the Group’s management. These forward-looking statements are,
Slide 3: Agenda
AGENDA 1 2 3 Overview Financial and Closing Stable performance in a Operational Overview Performance remains sensitive constrained environment Financial snapshot to external conditions Subdued market conditions Income statement Disciplined execution in an across key segments Operating expenses uncer
Slide 4: Overview
01 OVERVIEW Dr John Wentzel Chief Executive Officer
Slide 5: Stable performance in a constrained environment
Stable performance in a constrained environment Revenue declined ~6%, reflecting softer demand and contract churn in selected areas Selective withdrawal from lower-margin activity supported improved quality of earnings Operating profit increased modestly to ~R177m, supported by disciplined cost mana
Slide 6: Subdued market conditions across key segments
Subdued market conditions across key segments Moderate growth conditions persisted across core South African and Australian markets Client demand remained constrained, particularly in professional services Contract-based revenue remained inherently variable across selected staffing segments Competit
Slide 7: Revenue decline reflects portfolio discipline
Revenue decline reflects portfolio discipline Roll-off of major contracts in Australia and South Africa impacted revenue Lower client activity levels across key segments reduced demand Selective exit from lower-margin activity supported improved earnings quality and margin discipline Revenue perform
Slide 8: Resilient profitability despite segmental volatility
Resilient profitability despite segmental volatility Revenue pressure was concentrated in selected contracts and segments rather than across the broader portfolio Core operating divisions continued to deliver stable underlying performance Cost discipline and operational control were maintained consi
Slide 9: An effective performance
An effective performance REVENUE GROSS PROFIT OPERATIONAL MARGIN EXPENDITURE OPERATING CASH GENERATED DIVIDEND PROFIT DECLARED ADCORP ANNUAL RESULTS FOR THE YEAR ENDED 28 FEBRUARY 2026 9
Slide 10: Disciplined capital allocation
Disciplined capital allocation Dividend policy maintained in line with the Group’s historical framework Focus remains on sustainable cash generation and long-term shareholder returns Dividend Capital allocation continues to prioritise operational resilience, declared balance sheet strength and strat
Slide 11: Financial and Operational Overview
FINANCIAL AND 02 OPERATIONAL OVERVIEW Noel Prendergast Chief Financial Officer
Slide 12: Financial snapshot
Financial snapshot REVENUE GROSS PROFIT OPERATING PROFIT * R12,46 bn 5.9% R1,24 bn 5.1% R177,3 m 3.3% Feb 2025: R13,24 bn Feb 2025: R1,30 bn Feb 2025: R171,6 m HEADINE EARNINGS PROFIT FOR THE YEAR EARNINGS PER SHARE PER SHARE R146,0 m 3.6% 141,9 cps 5.3% 153,0 cps 13.0% Feb 2025: R140,9 m Feb 2025:
Slide 13: Summarised consolidated statement of profit and loss
Summarised consolidated statement of profit and loss Audited Audited Year end Year end Var Revenue declined in a challenging R’000 Feb 2026 Feb 2025 (%) trading environment Revenue 12 458 013 13 236 678 (5.9) Cost of sales (11 222 944) (11 935 225) 6.0 (5.1) Gross margin improved to 9.9% Gross profi
Slide 14: Gross Margin & EBITDA/net revenue progression
Gross Margin & EBITDA/net revenue progression Gross EBITDA/net margin revenue 12% 25% 20% 18.93% 18.93% 11% 16.75% 16.75% 14.71 14.71%% 15% 10% 10% 9.91% 9.83% 9.68% 5% 9% 0% Feb 2024 Feb 2025 Feb 2026 Gross margin EBITDA/net revenue ADCORP ANNUAL RESULTS FOR THE YEAR ENDED 28 FEBRUARY 2026 14
Slide 15: Operating expenses
Operating expenses R billion 1.5 1.42 1.4 1.37 1.3 1.31 1.25 1.2 1.18 1.15 1.15 1.1 1.12 1.10 1.05 1.02 1.0 0.9 Feb 2021 Feb 2022 Feb 2023 Feb 2024 Feb 2025 Feb 2026 Reported operating expenses (excluding impairments) Inflation adjusted (since 2021) ADCORP ANNUAL RESULTS FOR THE YEAR ENDED 28 FEBRUA
Slide 16: Contingent Staffing South Africa
Contingent Staffing South Africa A leading provider of flexible A private higher education Specialises in providing Specialises in providing front staffing solutions, specialising in institution that specialises in disability placement services and back-of-house staffing blue-collar temporary staffi
Slide 17: Contingent Staffing South Africa
Contingent Staffing South Africa Contribution Revenue to group Resilient performance delivered despite constrained 31.5% economic conditions and softer activity levels across R3.92 bn certain customer sectors R3.71 bn 1% 2% 3% Continued strong demand for workforce flexibility and stable 4% 5.6% util
Slide 18: Staffing Solutions South Africa
Staffing Solutions South Africa Specialising in outsourced business solutions A Business Process Outsourcing provider that leverage technology to enhance offering customised solutions to enhance operational efficiency and productivity. customer service and support. Telvuka FunxionO offers a range of
Slide 19: Staffing Solutions South Africa
Staffing Solutions South Africa Contribution Revenue to group Staffing Solutions delivered another strong 12.4% operational and financial performance during R1.55 bn the year R1.36 bn 2% 2% FunxionO remained the primary contributor to growth 13.6% through continued client retention and new business
Slide 20: Professional Services South Africa
Professional Services South Africa A leading IT staffing specialising in Focused on connecting top Intermediate permanent recruitment; technology solutions and staffing talent with leading employers. It Recruitment process outsourcing & services across various industries. offers temporary, permanent
Slide 21: Professional Services South Africa
Professional Services South Africa Contribution Revenue to group Revenue declined amid weaker hiring activity, 13.3% constrained discretionary spend and softer technology R1.94 bn sector demand 6% R1.65 bn 15% 6% Certain segments were impacted by the early effects of 15% 14.9% 10% AI-driven efficien
Slide 22: Contingent Staffing Australia
Contingent Staffing Australia BLU delivers flexible, high-calibre Specialises in providing front and BLU Healthcare delivers specialist workforce solutions across healthcare, back-of-house staffing solutions for healthcare staffing solutions across food processing, agriculture, and the hospitality i
Slide 23: Contingent Staffing Australia
Contingent Staffing Australia Contribution Revenue to group Revenue declined following the loss of a significant client that 13.3% internalised its workforce requirements R2.21 bn Gross margin improved materially from 8.7% to 10.6% through R1.65 bn repositioning toward higher-quality client relation
Slide 24: Professional Services Australia
Professional Services Australia Paxus is Australia's Leading IT Recruitment Skills Collective provides tailored workforce solutions Agency. The Destination for Digital + Tech to help organisations build agile, resilient teams. Talent and with more than 50 years in the Specialising in Statement of Wo
Slide 25: Professional Services Australia
Professional Services Australia Contribution Revenue to group Challenging market conditions persisted with 29.5% softness across permanent recruitment and cautious client spending R4.01 bn R3.69 bn Revenue impacted by exit of several low-margin contracts as part of ongoing portfolio quality improvem
Slide 26: Summarised statement of financial position
Summarised statement of financial position Audited Audited Year end Year end Var Balance sheet remains healthy and well R'000 Feb 2026 Feb 2025 (%) capitalised Assets Property and equipment 16 570 20 175 (17.9) Debtor quality and collections remained stable across the Group Right-of-use lease assets
Slide 27: Cash flow movements
Cash flow movements R’m 900 800 293 700 600 494 (192) 500 (78) 389 400 (45) (41) (26) (12) (4) 300 200 100 0 Cash at Net operating Working Dividend Net financing Taxation Net finance FX cash Net investing Cash at 1 Mar 2025 activities capital paid activities paid costs activities 28 Feb 2026 Strong
Slide 28: Working capital management
Working capital management R’m Days 400 50 45 300 40 38 38 37 38 38 200 36 36 37 35 103 116 30 100 25 0 20 -100 (100) (61) 15 (124) 10 -200 (200) (192) 5 -300 (300) 0 Feb 2022 Feb 2023 Feb 2024 Feb 2025 Feb 2026 Net working capital movement Days Sales Outstanding (DSO) ADCORP ANNUAL RESULTS FOR THE
Slide 29: Normalised working capital and cash conversion
Normalised working capital and cash conversion Net working capital movement Cash conversion R million 200 180% 159.0% 150 116 160% 100 140% 50 120% 103.0% 0 100% 90.4% -50 (50) (21) 80% (100) -100 (55) 60% 38.4% (150) -150 40% (200) -200 20% (192) (250) -250 0% 2025 2026 2025 2026 Reported Normalise
Slide 30: Net cash trend
Net cash trend* R’m Year end cash balance Weekly cash balance 500 442 400 342 312 300 198 204 200 100 0 Feb 2022 Feb 2023 Feb 2024 Feb 2025 Feb 2026 Distribution to external Nil R62m R128m R39m R78m shareholders Share R4m buy-back R4m R20m R7m R7m * Excluding restricted cash ADCORP ANNUAL RESULTS FO
Slide 31: Closing
03 CLOSING Dr John Wentzel Chief Executive Officer
Slide 32: Performance remains sensitive to external conditions
Performance remains sensitive to external conditions Ongoing geopolitical uncertainty, particularly in the Middle East, continues to impact global markets Interest rates remain key variables influencing economic growth Business activity levels remain sensitive to inflation Visibility on near-term de
Slide 33: Disciplined execution in an uncertain environment
Disciplined execution in an uncertain environment Continued focus on cost control and operational efficiency Disciplined investment in strategic initiatives Maintain strong balance sheet and dividend discipline ADCORP ANNUAL RESULTS FOR THE YEAR ENDED 28 FEBRUARY 2026 33
Slide 34: Q & A
Q&A Connecting human potential, building a sustainable future 34 Annual Results Year ended 28 February 2025
Slide 35: Appendices
Appendices Connecting human potential, building a sustainable future
Slide 36: Segmental performance
Segmental performance Revenue Gross profit EBITDA Audited Audited Audited Audited Audited Audited Year end Year end Year end Year end Year end Year end R’000 Feb 2026 Feb 2025 Feb 2026 Feb 2025 Feb 2026 Feb 2025 Total South Africa 7 121 076 7 017 825 782 306 786 797 194 758 181 456 Contingent Staffi
Slide 37: Group Revenue and Gross Profit
Group Revenue and Gross Profit R’m Group revenue Group gross profit 16 000 14 000 12 982 13 237 12 458 CAGR 12 049 2.4% 12 000 11 318 10 000 8 000 6 000 4 000 2 000 1 282 1 208 1 257 1 301 1 235 0 Feb 2022 Feb 2023 Feb 2024 Feb 2025 Feb 2026 ADCORP ANNUAL RESULTS FOR THE YEAR ENDED 28 FEBRUARY 2026
Slide 38: Australia Revenue and Gross Profit
Australia Revenue and Gross Profit R’m Australia revenue Australia gross profit 7 000 6 111 6 219 6 000 5 381 5 337 5 000 4 514 4 000 3 000 2 000 1 000 498 522 515 416 453 0 Feb 2022 Feb 2023 Feb 2024 Feb 2025 Feb 2026 ADCORP ANNUAL RESULTS FOR THE YEAR ENDED 28 FEBRUARY 2026 38
Slide 39: South Africa Revenue and Gross Profit
South Africa Revenue and Gross Profit R’m South Africa revenue South Africa gross profit 8 000 7 018 7 121 6 668 6 804 6 871 7 000 6 000 5 000 4 000 3 000 2 000 1 000 791 784 735 787 782 CAGR (0.3%) 0 Feb 2022 Feb 2023 Feb 2024 Feb 2025 Feb 2026 ADCORP ANNUAL RESULTS FOR THE YEAR ENDED 28 FEBRUARY 2
Slide 40: Connecting human potential, building a sustainable future
Connecting human potential, building a sustainable future www.adcorpgroup.com