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ADCORP AUSTRALIA LIMITED (AAU)

ADCORP AUSTRALIA LIMITED (AAU)

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General Information
Company Name: Adcorp Australia Limited
Stock Code: AAU
Website: www.adcorp.com.au
GICS Sub-Industry: Advertising
Market Cap ($M): 11
Equiv. Shares (M): 61

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
$ 0.175 $ 0.000 $ 0.000 $ 0.000 $ 0.175 0 0%

Current Broker Consensus Recommendation more
Recommendation: Hold
Recommendation Date: 10th Jan 2006
12 Month Target Price (average): $0
Brokers Surveyed: 0

Company Overview

Business Description:
Adcorp Australia Limited (AAU) is an Australasian owned marketing communications group. The Adcorp network is divided into specialised units that provide marketing communications solutions tailored to client requirements. The company is involved in advertising agency services specialising in human resources, real estate, motor vehicle, education and retail; website design, development and database support services; and digital marketing services and consulting.

Strategy Analysis:
Adcorp's (AAU) strategy for growth is to seek acquisition opportunities in new sectors and reducing reliance on volatile core sectors. In existing markets AAU intends to grow organically, increasing market share by investing in technology and providing more value-added services. Adcorp seeks additional revenue streams and growth opportunities within the Lifestyle, Retail and Travel advertisement Industries, where it can capitalise on its technology and service offering to increase market share. During FY05, AAU restructured its technology services. It has entered into a strategic alliance with a provider of e-recruitment software NGA.NET, to launch a new online candidate management solution, recruitmanager nga. Also, it has entered into a partnership with leading UK-based advertising software company, Simply D'nA. Adcorp is now D'nA's exclusive solutions provider in Australia and New Zealand. To assist diversification, Adcorp acquired retail motor vehicle advertiser Donald & Donald (June 2002). Other deals include the acquisition of Greens Advertising (May 2002), and a licensing and development agreement with News Interactive, saw AAU power News' recruitment website, CareerOne.


Financial Summary
Year to Jun NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2011  A 1.4 2.3 -- 8.5 2.0 10.3 100.0
2010  A -7.1 -11.8 NaN 0.0 0.0 0.0 --
2009  A 0.3 0.5 -92.1 69.1 1.0 3.2 100.0
Source: Aspect actuals / Thomson IBES estimates

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2009 A 2010 F 2011 F 2009 A 2010 F 2011 F 2009 A 2010 F 2011 F
Adcorp (AAU) $11 M -- -- -- 7.6419 -- -- 0.1143 -- --

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
AAU 3.00 7.64 1.26 -- 0.36
Market 1.12 11.1 0.96 2.31 2.55
Sector 0.96 8.41 1.20 6.45 0.86

Directors
Name Position Start Date
Mr David Morrison Chief Executive Officer,Executive Director 21 March 2011
Mr Bob Campbell Non-Executive Chairman 01 May 2005
Mr Ian Frederick Rodwell Non-Executive Director 01 January 1981

Management
Name Position
Craig McMenamin Chief Financial Officer,Company Secretary
Metthew P Mellor Chief Operating Officer

Substantial Shareholders
Holding Name
6,454,535 (10.64%) UBS Wealth Management Australia Nominees Pty Ltd
5,312,343 (8.76%) Victor John Plummer
21,716,127 (35.79%) Sovote Pty Ltd

Calendar of Events
Date Event
26 February 2013 Report (Interim)
29 October 2012 Report (Annual)
24 August 2012 Report (Prelim)
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