EOH bolsters earnings

By Nicola Mawson, Contributing journalist

Johannesburg, 02 Sept 2009

Listed outsourcing company EOH expects earnings to be higher when it reports its results for the year to July later this month.

The company seems to have bucked the recession. It says earnings per share and headline earnings per share are expected to be between 20% and 30% higher than last year.

A year ago, EOH reported headline earnings per share of 96.8c, a 22.9% improvement on 2007's 78.8c. Earnings per share last year were 96.2c a share, a 22.4% gain over the previous year's 78.6c.

The listed company did not give any reasons for the increase. However, in January, it added CA Southern Africa to its fold, which may account for some of the growth.

In the first half of the year, EOH bought contract management business Highveld PFS and remote technology support services company REO Consulting.

EOH's revenue is derived primarily from the provision of technology services, which includes consulting, systems implementation and integration and managed services; software licence and maintenance revenue; and the sale of infrastructure products. The company's annuity business traditionally accounts for more than 40% of its revenue.

Companies are required by JSE rules to alert shareholders when earnings will differ by 20% from the previous corresponding period. EOH is expected to report on 15 September.