Ad­corp CEO Du­tiro re­signs

Business Day - - FRONT PAGE - Karl Ger­net­zky Mar­kets Writer ger­net­[email protected]­nesslive.co.za

JSE-listed em­ploy­ment ser­vices group Ad­corp, which is re­view­ing its op­er­a­tions, said on Wed­nes­day that CEO In­no­cent Du­tiro had re­signed after two years’ ser­vice. Ad­corp said on Wed­nes­day that Du­tiro had left with im­me­di­ate ef­fect, but had been dis­cussing his exit with the board.

JSE-listed em­ploy­ment ser­vices group Ad­corp, which is re­view­ing its op­er­a­tions, said on Wed­nes­day that CEO In­no­cent Du­tiro had re­signed after two years’ ser­vice.

Ad­corp said on Wed­nes­day that Du­tiro had left with im­me­di­ate ef­fect, but has been dis­cussing his exit with the board. “His de­par­ture has been driven by his de­sire to re­view his own ca­reer after giv­ing two years to the group,” the com­pany said.

Du­tiro had pur­sued a strat­egy of cost-cut­ting and fo­cus­ing on new busi­nesses, in­clud­ing those fo­cused on con­sult­ing and train­ing.

The group said on Wed­nes­day that it will re­view cur­rent ini­tia­tives, “with a view to pri­ori­tise them and en­sure that the group is not try­ing to do too many things con­cur­rently”.

Ad­corp said it would also bring for­ward its re­sults for the half-year to Au­gust with­out giv­ing a date. The re­sults were pre­vi­ously sched­uled to be re­leased on Oc­to­ber 28.

After reach­ing a record high of R45 in 2007, Ad­corp’s shares have come un­der pres­sure, with the stock now val­ued at only about a third of that. On Wed­nes­day, it lost 4.32% to close at R15.50. When Du­tiro joined the com­pany two years ago, the share was trad­ing at R14.80.

Small Talk Daily’s An­thony Clark said Du­tiro’s res­ig­na­tion is sur­pris­ing, given that Du­tiro was ap­pointed to turn the com­pany around, which he had done to some de­gree. “It does lead to more ques­tions about what is go­ing on in­side Ad­corp, the com­pany does seem to be on a bet­ter foot­ing,” he said.

The com­pany’s share price plum­meted 22.5% on Oc­to­ber 4, when it warned that head­line earn­ings per share for its six months to end-Au­gust would fall up to 94.5%. It was its worst one­day share price fall in 25 years.

Many clients in SA had re­sponded to the eco­nomic cli­mate by cut­ting back on their work­force or de­lay­ing per­ma­nent ap­point­ments, the group said at the time.

Drought in Aus­tralia also put pres­sure on the group’s Labour So­lu­tions Aus­tralia busi­ness, which pri­mar­ily pro­vides staff for the agri­cul­tural sec­tor.

/Rus­sell Roberts

Res­ig­na­tion: Ad­corp CEO In­no­cent Du­tiro has re­signed with im­me­di­ate ef­fect after two years of ser­vice.

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