Subscribe

EOH's strong performance continues

Admire Moyo
By Admire Moyo, ITWeb's news editor.
Johannesburg, 15 Mar 2017
Asher Bohbot, CEO of EOH.
Asher Bohbot, CEO of EOH.

In what has become a trend, JSE-listed technology services firm EOH has, once again, posted strong financial results.

The company announced its results for the six months ended 31 January this morning. It says revenue from SA increased by 21% to R7.2 billion, excluding EOH's share of revenue relating to equity-accounted investments. Organic growth accounted for 80%.

EOH notes that services and software continue to be the dominant revenue driver, accounting for 83% of revenue. Meanwhile, sales in SA accounted for 87% of total revenue with the balance from the rest of Africa and the Middle East.

Profit before tax increased by 26% to R845 million. The growth is attributable to a combination of strong organic growth and recent acquisitions, the company says. Headline earnings per share and earnings per share increased by 22% and 23% respectively, with cash increasing to R2 billion. The overall operating margins have increased to 12.6%.

According to EOH CFO John King, the main growth drivers remain the development of new and additional solutions, services and products delivered to its existing customers and expansion into new territories to meet clients' needs, with a particular focus on EOH's own niche software and IP solutions.

During the period under review, EOH continued its strategy to consolidate and complement its existing services with strategic acquisitions. The businesses that join EOH are quickly integrated into EOH's management structures to complement and enhance its solution offerings to existing and future customers.

During the six months ended 31 January, a number of businesses joined the EOH family. These include the Cornastone group of companies and several small businesses in Africa and the Middle East.

EOH acquired the firms to bolster its technology applications, software and consulting solutions capabilities, augment its BPO service offerings and enhance its industrial technology capabilities.

The total purchase consideration for these acquisitions is R744 million, consisting of R393 million payable in cash and the issue of 2 211 835 EOH shares. In most instances, 100% of the shares were acquired.

CEO Asher Bohbot says the company will continue to focus on the big enterprise market as well as the public sector.

Share