Listed outsourcing company EOH yesterday hit the magical R1 billion market capitalisation mark for the first time, as its shares moved up on its full-year results.
The company reported revenue up 38.1%, to R1.7 billion, while net profit surged 32.5%, to R101 million. Headline earnings per share, a key indicator of a company's performance, rose 28.3%, to 156.4c.
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.
The market reacted positively to the news, with shares in the company shooting up 2.4% just after the announcement went out, to trade at R12.80, which is where EOH's shares closed on the day.
CEO Asher Bohbot says yesterday was the first time the company's market capitalisation hit the R1 billion mark. As a result of the increase in share price, its market capitalisation ended the day at R1.02 billion.
The increase in share price puts EOH on a par with its peer companies Business Connexion and Gijima, says Bohbot. Business Connexion has a market capitalisation of R1.6 billion, while Gijima's market capitalisation is R863.7 million.
Bohbot says the upgrade in market capitalisation makes EOH “big enough” to be taken seriously by the local market as a business partner. He says the company has a proven track record, but the increase in size will quash concerns that EOH was too small to be reliable. “We are now part of the big league.”
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