Listed outsourcing company EOH grew revenue 44.8% in the first half of the year, as recent acquisitions pay off.
The company this morning published its results for the six months to January, and said revenue was 44.8% higher, at R1.1 billion, and pre-tax profit was R109 million, a 49.5% gain on last year.
A year ago, the company reported revenue of R787.3 million, and profit before tax of R72.98 million. CEO Asher Bohbot says organic growth drove 66% of the revenue gain, while acquisitions accounted for a third of the higher turnover.
EOH aims to grow through a strategy of driving 60% of revenue gains through organic growth, and 40% through acquisitions. The company has set itself the target of achieving R4 billion revenue in the 2014 financial year. For the year to July 2010, revenue was R1.7 billion.
During the last financial year, EOH made several acquisitions in the infrastructure sales, development and infrastructure managed services arena. It bought Glacier Consulting, Think iT, Connection 42 and BT Cape. It also expanded its recruitment capability through the acquisition of the skills and resources of Abacus Recruitment.
In the past six months, EOH continued with its acquisition trail, and broadened its business process outsourcing activities by buying Elixir Group, Pinnacle Health Solutions and Compensation Technologies Holdings.
At the end of January, EOH bought Microsoft specialist company Belay for an undisclosed amount to add it to its skills set. Midrand-based Belay is a specialist IT services and solutions provider with 200 employees.
Collectively, the acquisitions enhance EOH's service offerings and contribute to its profitability, although none of these acquisitions on their own were significant, says EOH.
Bohbot says EOH sees cloud computing as a growth area and is also looking at driving its service offering into the public sector, particularly in the areas of health, education and local government.
The company is also looking to extend its services into Africa and provide further off-shoring services to Europe from SA, says Bohbot.
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