Adcorp to slash costs as tough conditions erode jobs market

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The employment services group was hit by a 69% plunge in cash generated by operations in its six months to end-August

Human resources specialist Adcorp, whose share price has lost more than a third of its value so far in October, said on Wednesday that it would seek to slash costs at its operations as SA’s weak economy takes its toll on job numbers.

Cash generated from operations slumped 69% to R110m, with the company impairing its business units by R452m due to lower expectations of future revenue. At 12.15pm, Adcorp’s share price had slipped 7.14% to R13 — a two-year low. The company’s share price has fallen almost 36.74% so far in October. This includes a 22.5% slump on the day it issued a trading update, its worst one-day loss in 25 years.

“In SA, our focus over the short term will be the implementation of tactical interventions to claw back on the losses incurred in the first half of this year,” it said.

 

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