South Africa-based workforce management solutions group Adcorp Holdings Ltd. (ADR: JSE) published a trading statement and operational update for the half year ended 31 august 2018.

Total EBITDA for the period to August 2018 will range between ZAR 200 million and ZAR 220 million (USD 14.1 million to USD 15.5 million) compared to ZAR 95 million (USD 6.7 million) in the period to August 2017, according to the group.

The Australia businesses reported an 11% improvement in EBITDA in Australian Dollars, however this increase was dampened by the impact of exchange rate movements resulting in a net 3% increase in South African rand.

In the South Africa operations, revenue was relatively flat compared to August 2017.

“The drive to right size the business and ensure a structure and processes that are efficient and optimal is yielding benefits resulting in improved EBITDA,” Adcorp stated. “Both the Support Services and Training businesses have experienced improved performance, with the latter no longer trading at a loss.”

The group said the focus in the current year is on stabilising operations, stemming losses from its Training business and “unlocking short term wins as they develop a blueprint for the future of Adcorp.”

The improved EBITDA position, together with the focus on liquidity and working capital management has strengthened the cash position of the group. Cash generated by operations was ZAR 360 million (USD 25.4 million) compared to ZAR 122 million (USD 9.4 million) in the period to August 2017. The closing cash at bank balance was ZAR 599 million (USD 42.3 million) compared to ZAR -19 million (USD 1.4 million) at 31 August 2017. This resulted in a reduction in the net debt position to ZAR 632 million (USD 44.6 million) from ZAR 1.294 billion (USD 99.5 million) and a net cost of funding reduction across the group.

Earlier this year Adcorp announced that CEO and director Richard Pike and COO Nelis Swart had resigned from their positions effective 31 July 2018. This month, acting CEO Mark Jurgens resigned as a director of Adcorp. Jurgens will remain employed by Adcorp, heading up its Australian operations.

Prior full year results for FY 2018 saw revenue decline 3% to ZAR 15.3 billion (USD 1.2 billion) while grtoss profit declined 4.5% and underlying EBITDA improved by 3.8%, compared to the previous year.

Adcorp expects to publish its financial results on or about 15 October 2018.

Adcorp last traded at ZAR 1,600 (USD 113.0), no change on the day. Based on its current share price the company has a market value of ZAR 1.76 billion (USD 124.3 million).