Integrated annual report

2023

Te a m w o r k

Years of resilience

Re s p e c t

35

Customer centricity

Agility

Diversity and inclusion

INTEGRATED ANNUAL REPORT 2023

Contents

1

Introduction

About our report

01

FY2023 salient features

04

Chairperson's report

05

Chief Executive Officer's report

06

2 Adcorp at a glance

Our business

08

Our purpose

09

Our brands

10

The market

13

3 How we create value

Our business model

17

Our strategy

18

Our approach to ESG

20

4 Our impact

Stakeholder engagement

25

Our people

29

Health, safety, environment and quality

39

Our communities

41

Environmental

47

5

Our performance

Chief Financial Officer's report

50

Five-year performance indicators

58

6

Governance

Directorate

62

Executive

64

Ethical leadership

65

Corporate governance report

67

Risk management

75

Remuneration report

80

Social, ethics and sustainability committee report

94

Audit and risk committee report

101

7 Consolidated financial statements

Consolidated statement of financial position

105

Consolidated statement of profit or loss

106

Consolidated statement of other

107

comprehensive income

Consolidated statement of changes in equity

108

Consolidated statement of cash flows

110

Segment report

112

Notes to the audited consolidated financial

116

statements

8 Shareholder information

Shareholder analysis

184

Shareholders' diary

187

Definitions

188

Corporate information

IBC

www.adcorpgroup.com

About our report

Building on resilience

Adcorp is a workforce solutions company listed on the JSE with operations in South Africa and Australia.

For more information refer to page 08.

01 - INTRODUCTION

REPORTING SCOPE AND BOUNDARY

This is Adcorp's 13th integrated report which provides information relating to the strategy, business model, operating context, material factors, risks, opportunities, governance and operational performance of the Adcorp Group and its subsidiaries ("Adcorp Group" or "Group") for the period 1 March 2022 to 28 February 2023. The report is targeted at our stakeholders, primarily our shareholders who are the principal providers of the Group's financial capital. It covers the South African and the Australian operations and follows the previous year's report published in June 2022.

APPROACH TO REPORTING

The integrated report has been set so that it covers Adcorp's risks, opportunities and outcomes relating to the Group's operating environment, overall businesses and stakeholder engagement with key groups that could influence its ability to create and sustain value and also the extent to which the Group's objectives have been achieved.

In compiling the report, we were guided by international and South African reporting guidelines and best practices, which comprise of the following:

  • Reference to the Global Reporting Index (GRI) standards
  • The International Integrated Reporting Framework issued in December 2013 ( framework)
  • International Financial Reporting Standards (IFRS)
  • JSE Listings Requirements
  • JSE Sustainability Disclosure Guidance
  • The King IV Report on Corporate Governance™* for South Africa, 2016 (King IVTM)
  • South African Institute of Chartered Accountants (SAICA) Financial Reporting Guides as issued by the Accounting Practices Committee

We summarise our value creation as follows:

The determination of materiality is consistent with previous reporting periods.

The application of our strategy in order to create long-term value for shareholders.

See page 18

Approach to governance, which is addressed in the accountability section.

See pages 62 to 74

1

4

How we created value in 2023

2

3

Management of risk, opportunities and the material issues on which our reporting is based to create sustainable value.

See pages 02 and 75 to 79

Sustainable development of the business, which is addressed in the strategy and impact sections.

See pages 02 to 17

The financial statements are presented in ZAR, which is the Group's reporting currency and can be found on our website www.adcorpgroup.com. The consolidated financial statements are set out on pages 105 to 183.

Navigation in this report

For ease of reference and further reading, the following icons are used in the report:

IAR

W

Further reference

Further reference

in this report

on www.adcorpgroup.com

  • Copyright and trademarks are owned by the Institute of Directors in South Africa NPC and all of its rights are reserved.

Feedback

A hard copy of this integrated report is available on request and online at https://www.adcorpgroup.com/ wp-content/uploads/2023/06/Integrated-Annual-Report-2023.pdf.

Adcorp recognises the importance of integrated reporting and the Group is committed to moving towards a more integrated approach to reporting, by making constant improvements on a year-on-year basis. Therefore, we appreciate and encourage constructive feedback. Please forward comments to: ir@singular.co.za

02 INTEGRATED ANNUAL REPORT 2023 -

About this report continued

Approach to materiality

Adcorp continues to apply the principle of materiality in determining the content and disclosure of its Integrated Report. This helps ensure Adcorp provides relevant information on factors that have a material bearing on the Group's ability to create value. These factors are of interest to current and prospective investors and other stakeholders who wish to make an informed assessment of the Group's ability to deliver value over the short, medium and long term. Material factors were established through external engagement with investors and other

stakeholders as well as internal engagement with our South African and Australian employees.

The Board has identified the following as Adcorp's material factors:

  • Skills supply and demand imbalance
  • Changing work environment - hybrid and remote work
  • Impact of technology
  • Reskilling the workforce
  • Turbulent labour markets

INTRODUCTION

Six capitals

In line with the International Integrated Reporting Council's concept of reporting in terms of the six capitals that impact value creation and contraction in a business, the Group's activities and performance relating to the capitals below are covered throughout the report, as indicated.

Capital

Description

Reference in report

●

Our business model

Financial capital

Financial resources deployed

●

Our strategy

by the Group

●

Chief Financial Officer's report

●

Consolidated financial statements

Organisational knowledge,

●

Our business model

Intellectual capital

systems, protocols, expertise,

●

Our strategy

brands

●

Our people

Competency, capability

●

Chief Executive Officer's report

and experience of the

Human capital

●

Our people

Board, management and

●

Stakeholder engagement

employees

●

Chairperson's report

Relationship and

●

CEO's report

●

Ethical leadership

Social and relationship

engagement with broader

●

Our impact

capital

society and communities

●

Social, ethics and sustainability committee

impacted by the Group

report

●

Stakeholder engagement

Natural capital

Group's use of natural

●

Environmental

resources

Manufactured capital

Physical infrastructure used

●

Our business model

●

Our strategy

Assurance

A combined assurance framework is in place and is overseen by the audit and risk committee. The framework ensures the integration, coordination and alignment of risk management and assurance processes. It further enables an effective control environment and supports the integrity of information used for decision-making by leadership.

As per King IV™, a combined assurance model assists the Board in assessing the effectiveness of the internal control environment and enables the Board to assess the integrity of the information used for reporting and decision-making.

As a combined assurance model is in place, the standards and principles were assessed by an external assurance provider where required.

Business process

Level of application/

Standards/codes/principles/guidelines

compliance in our reporting

Assurance provider

International Financial Reporting Standards (IFRS)

Complied with

KPMG

International Integrated Reporting Council (IIRC)

Guided by its principles

No external assurance

King Code on Corporate Governance 2016™

Applied and application

No external assurance

(King IV™)

reported on (See link below)*

JSE Listings Requirements

Complied with

Valeo Capital

Companies Act 71 of 2008

Complied with

KPMG, with respect to audit

requirements

Principles of United Nations Global Compact

Applied

No external assurance

Labour Relations Act 66 of 1995 (LRA)

Complied with

No external assurance

Broad-Based Black Economic Empowerment

Level 1

mPowerRatings

(B-BBEE)

* https://www.adcorpgroup.com/corporate-governance-register-2023/

03 - INTRODUCTION

Board approval

The Adcorp Board assumes responsibility for the integrity of this integrated annual report and believes that the integrated annual report was prepared in accordance with the International Integrated Reporting Framework. The report, which remains the ultimate responsibility of the Board, is prepared under the supervision of senior management. The report is submitted to the audit and risk committee, which recommends it to the Board for approval having reviewed the contents, as well as the collation process, and with reliance on the assurance provided on the various reporting elements. The Board has critically assessed and satisfied itself as to the assurance obtained from Adcorp's combined assurance model, which enables an effective internal control environment that supports the integrity of information used for decision-making and reporting by the Board, the Board committees and management.

The Board also considered materiality for the purposes of the integrated annual report and the effect that the presence or absence of an item of information might have on the accuracy or validity of a statement in the integrated annual report, or a decision by stakeholders.

Our integrated annual report sets out how Adcorp's strategy, governance, performance and prospects lead to the creation of value over time. The Board is of the view that, to the best of its knowledge and belief, the integrated reporting addresses matters material to our stakeholders' decision-making and provides a balanced view by explaining how Adcorp expects to create value over time, taking into consideration the Group's impact on its stakeholders and the environment in which it operates.

The Board unanimously approved the integrated annual report for FY2023 on 30 June 2023.

GT Serobe (Chairperson)

T Olls

J Wentzel (CEO)

H Singh

N Prendergast (CFO)

C Smith

M Lubega

S Sithole (Alternate Director)

P Mnganga

R van Dijk

T Mokgabudi

30 June 2023

Forward-looking statements

Certain statements in this report may constitute forward-looking statements relating to the Adcorp Group that are based on the beliefs, assumptions and information currently available to the Board. These forward-looking statements are, by their nature, subject to significant risks and uncertainties and include, without limitation, statements relating to the Group's business prospects, future developments, trends and conditions in the industry and geographical markets in which Adcorp operates. The forward-looking statements may also contain objectives, overall market trends, strategies, ability to control costs, statements relating to operations and risk management. All forward- looking statements have not been reviewed or reported on by the Adcorp Group's external auditors.

A copy of our notice of AGM is available on our website https://www.adcorpgroup.com/notice-of-agm-2023/

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

Adcorp Holdings Limited published this content on 30 June 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 June 2023 13:44:35 UTC.