EOH, one of South Africa's largest technology and outsourcing providers listed on the software and computer services sector of the JSE, today announced its most profitable financial year since the company was established in 1998. The results are for the year ending 31 July 2008.
EOH reported a 35% increase in revenue to R950 million with profit after tax increasing by 25% to R61 million. Headline earnings per share are up 23% to 97 cents. EOH had R119 million in cash at the end of the period.
Asher Bohbot, Chief Executive Officer of EOH, says the board is satisfied with the performance for the period under review. The strong growth is mainly organic, with the continued funding of growth internally delivering healthy earnings. Cash on hand remains significant.
He says EOH has embarked on an intensive drive to increase its annuity business in many existing and innovative ways, including hosting and networking, software support contracts, call centre, service desks and managed services.
The financial year under review has seen the acquisition of MultiPath, an award-winning outsourcing call centre, which has increased EOH's outsourcing division to over 600 staff. The financial results of MultiPath have been incorporated in the EOH results, with effect 1 July 2008.
A major effort will also be made to increase its public sector market share. An education and training business will be launched later in the year, helping EOH to fulfil its responsibility in terms of skills development in the industry.
Its formidable skills base and proven business model put EOH in a good position to capitalise on its existing partnerships with major international technology players, Bohbot says. With this global mindset, EOH has set up offices in the United Kingdom, from which it offers some of its locally-provided products and services. The company has also launched EOH Global Resourcing, a division that is focused on the provision of skills across various countries.
EOH also plans to increase its activities in Africa in the coming year. The wide range of solutions offered to various industries in both the public and private sector, together with its strong management team and financial strength, positions EOH well for future growth. The growth strategy will remain focused on organic growth, supplemented by strategic acquisitions, says Bohbot.
"EOH is a major player in the technology, consulting and outsourcing space and these offerings are enhanced by our ability to deliver effective 'end-to-end' solutions to our clients. These offerings include the provision of infrastructure and support, hosting and networking, and the provision of interim skills. These enable EOH to form long-term strategic outsourcing partnerships with existing and new customers. We are also building knowledge and business acumen with a focus on the public sector, as well as the mining, manufacturing, financial services and telecommunications sectors."
In conclusion, Bohbot extends his gratitude to staff, customers, partners and members of the investor community for their contribution to the growth of the business over the past 10 years. "The vision of EOH is to be the best technology and business solutions company to work for, partner with and invest in."
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EOH is a business and technology solutions provider creating lifelong partnerships by developing business and IT strategies, supplying and implementing solutions and managing enterprise-wide business systems and processes for medium to large clients.
EOH operates in the following three clusters of business units as a fully integrated business:
Technology - Through a number of subsidiary companies, EOH is able to sell, implement and support a range of world-class business applications, including ERP, CRM, business intelligence, advanced planning and scheduling, e-commerce and manufacturing execution systems (MES).
Consulting - Concentrated under the EOH Consulting brand are business units offering services ranging from strategic and business process consulting, project services, change management, supply chain optimisation and education.
Outsourcing - EOH offers comprehensive maintenance and support of client's IT infrastructure and applications through the rendering of full IT outsourcing, application hosting and managed services. In addition, EOH offers full business process outsourcing (BPO) services.
EOH has a presence in all major centres in South Africa and operates in the rest of Africa.
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