Adcorp wants substantive leader after CEO quits


Adcorp wants substantive leader after CEO quits

Published Date: 2019-10-10 | Source: Stephen Gunnion | Author: Stephen Gunnion

Adcorp wants substantive leader after CEO quits

After warning of a first-half loss, the group is putting corrective measures in place, including an immediate search for a suitable CEO.

Adcorp CEO Innocent Dutiro has quit with immediate effect just days after the group warned it would report a loss for the first half of its financial year. However, the labour broking and outsourced services group said the timing of Dutiro's departure had been driven by his desire to review his own career after giving two eventful years to the group.

Last Friday, Adcorp said it would report a loss of between 375.5c and 450.6c per share for the six months to end-August, down from earnings of 90.2c last year. Headline earnings per share would fall as much as 94.5% to 4.9c from 88.3c previously. It said earnings were affected by an impairment of at least R450 million from the resource-based cash generating units of the company. A pullback in hiring in SA due to the weak economy and volatile weather conditions in Australia were also to blame.

Following the poor trading statement, the group said it was working with management to put corrective measures in place, including an immediate search for a 'substantive' CEO to assist it with its next chapter. It said key consideration would be a leader with strong service operational experience, with an emphasis on a strong people culture and client focus.

It also plans a review of its strategy to ensure that focus is placed on its core competencies, including temporary employment services, IT resources, business process outsourcing and trading. A review of current initiatives will prioritise them to make sure it's not trying to do too many things at the same time. And it wants to make sure that its management and board have the right strategic skills and relevant industry experience.

In the meantime, the group said chief financial officer Cheryl-Jane Kujenga would take over as interim CEO.

Adcorp plans to bring forward the release of its interim results, which were scheduled for release on 28 October, before embarking on a roadshow to update key stakeholders on the important short, medium and long-term plans for the business.

Its shares fell 4.3% to R15.50 yesterday.

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