Adcorp Holdings Limited reported in a trading statement on Wednesday that revenue fell 3% in the year ended 28 February 2018 and that it expects a bigger loss per share than the previous year. It also announced that EBITDA for the previous year was restated to ZAR 373 million (€26.0 million).

The South Africa-based staffing firm plans to release results for its last fiscal year on 21 May. Adcorp said it expects a headline loss per share of between 140 cents and 160 cents, compared to the previous year’s restated loss per share of 57.5 cents.

Its restatement of EBITDA arose because of the “classification of losses from the Rest of Africa operations as discontinued operations, in addition to some prior year adjustments,” according to the company.

Adcorp reported one-off costs of ZAR 251 million (€17.5 million) for the year, a portion of which included:

• ZAR 115 million (€8.0 million) for nonrecoverable accounts receivable largely from its clossed Fortress payroll business.
• ZAR 50 million (€3.5 million) in retrenchment costs that resulted in a headcount reduction of 260 at the executive and junior level.
• ZAR 51 million (€3.6 million) of restructuring costs that included severance costs for exiting an offshoring contract, new software implementation and debt refinance costs.

Adcorp also reported a goodwill write-off of ZAR 478 million (€33.4 million) that came after an evaluation of historical acquisitions.

Last August, the company had announced the departures of CEO Richard Pike and COO Nelis Swart. Adcorp later announced Innocent Dutiro as its new CEO and the sale of its 34% Nihilent Technologies, a business consulting and technology services company to Dimension Data.

Shares in Adcorp closed down 0.29% yesterday to ZAR 1,700. The company had a market cap of ZAR 1.85 billion.