Spread­ing its wings, and not a mo­ment too soon

Financial Mail - Investors Monthly - - Analysis -

dcorp is break­ing free of the growth con­straints of a stalled SA econ­omy. Its strat­egy is bold, and fast fall­ing into place.

“We in­tend to be a south­ern hemi­sphere player of con­se­quence,” says the staffing ser­vices firm’s CE, Richard Pike.

“We con­sider Africa and the Asia Pa­cific re­gion to be our growth ar­eas.”

Ad­corp’s in­ter­na­tion­al­i­sa­tion be­gan in earnest with the ac­qui­si­tion of Aus­tralian IT con­tract­ing and re­cruit­ment firm Paxus for A$60m in De­cem­ber 2012. The next big step was to buy blue-col­lar staffing firm

ALabour So­lu­tions Aus­tralia (LSA) for $51,5m in Oc­to­ber 2013. Ad­corp’s strat­egy is pay­ing off. “We will earn 45% of our profit out­side SA this [fi­nan­cial] year,” says Pike. It would be up from a third in Ad­corp’s year to Fe­bru­ary 2015. This is just the start, says Pike. “We en­vis­age Asia, Aus­tralia and Africa [in­clud­ing SA] each gen­er­at­ing one third of our profit,” he says.

Ad­corp is build­ing fast on its Asia Pa­cific foun­da­tion. Just added, in a $30m bank-fi­nanced deal, is Dare Hold­ings, a Perth-based firm spe­cial­is­ing in the West Aus­tralian oil and gas sec­tor’s tech­ni­cal and en­gi­neer­ing

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