Listed outsourcing company EOH has grown revenue by more than a third during the year to July, an indication it is on track to meet its revenue target.
The company this morning released its annual results and said turnover had grown 38.1% to R1.7 billion, while profit before tax improved 36.6% to R159.2 million. EOH has attributed the growth to a combination of organic improvements and its recent acquisitions.
“During the year we followed our core strategy, targeting areas where we would derive more annuity and repeat revenue,” says CEO Asher Bohbot.
He has previously stated that the company wants to hit R4 billion in revenue by the 2014 financial year, which would require it to grow revenue 27.5% each year. Bohbot said this would be achieved through a combination of organic and acquisitive growth.
EOH made several acquisitions during the year 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.
The company is growing its managed services business in both infrastructure and applications. It is also expanding its business process automation, storage and virtualisation, application testing and monitoring, and IT security solutions.
This financial year is the 12th year in a row that EOH has posted revenue and operating profit growth, it says. Since listing on the JSE in 1998, it has reported compounded headline earnings per share growth of 28% per year and compounded revenue growth of 40% per year.
EOH's shares leapt up 2.4% in early morning trade after its results announcement, to R12.80.
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