EOH, regarded as a leader in technology and business solutions, and the largest enterprise applications provider in South Africa, has kicked off 2010 with impressive interim results for the six months ended 31 January 2010.
EOH reported revenue growth of 40.6% (R787.3 million), an increase in profit before tax of 37.7% (R73 million), an earnings per share increase of 30.4% (70.3 cents), and an increase in headline earnings per share of 29.2% (70 cents).
“These are strong results and we are understandably satisfied with our performance. We have a solid balance sheet and substantial cash to support future growth and sustainability. Our brand is getting stronger and EOH's impact in the IT industry is gaining momentum,” says EOH Chief Executive Officer, Asher Bohbot.
Bohbot says EOH has seen growth across all areas of its business, including services, software and infrastructure: “While all divisions performed well, the services business generated the highest revenue with R400 million, which accounts for just over 50% of EOH's revenue.”
There has also been significant growth in the infrastructure business following the recent acquisition of Glacier Consulting.
EOH's steadfast focus on its four primary objectives has also contributed significantly to the company's continued success: to attract, develop and retain the best people; to partner for life with both technology partners and clients; to implement a right first time philosophy and to achieve profitable growth.
Bohbot says commitment to these objectives has enabled EOH to build strong partnerships with large international technology organisations as the sole representative or the largest local partner. The implementation of EOH's 'Right 1st Time' philosophy has contributed to the company achieving some of the highest margins in the industry: “We ensure that we do it right first time and in doing this, the customer gets good value, we make better margins and are able to build a solid reputation.”
EOH plans to grow organically and through strategic acquisitions, which complement its business. The company will continue to focus on increasing the size of its managed service business in both infrastructure and application. These will be provided onsite, as well as remotely through EOH hosting and networking. EOH will also be expanding its business process outsourcing suite of offerings and IT security services and solutions.
EOH currently has 34.8% black shareholding and has 60% black representation on its board of directors. Staff wise, 44.6% of its employees are black. The company is rated as a level 3 contributor and as a result, customers are eligible to claim 138% of any spend with EOH.
The company has earmarked education as its key CSI initiative with specific focus on promotion of maths and science, which are critical to South Africa's growth. Bohbot says enterprise and skills development through the EOH Academy are also key to the business future growth.
“EOH is gaining traction and has a solid and widespread offering to over 2 500 customers. We have a strong annuity base and a healthy balance sheet. EOH has the best people, an impressive track record, entrepreneurial spirit and the resources to compete effectively in the marketplace,” concludes Bohbot.
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