Enterprise Outsourcing Holdings (EOH) has ended a strong financial year with the board declaring a 10c dividend, up from last year`s dividend of 7c a share.
The group`s revenue soared by 69% to R299.54 million in the year to July, compared with R175.97 million the previous year.
Profit from operations, before goodwill, rose by 35% from R18.05 million to R24.4 million, while the financial statements recorded a net profit of R19.13 million, up 33% from R14.4 million. Headline earnings rose from 30.67c to 40.61c a share.
Cash on the balance sheet was up by 52.7% from R40.4 million to R61.7 million.
Subsequent to the year-end, EOH acquired Global Technology Business Intelligence (GBI).
EOH director Rob Sporen says GBI is expected to make a significant contribution to the group. "There are about 50 or 60 people working around the product, so it`s a significant size," he says. "Just to give you an idea, the average EOH business unit is about 35 people."
Despite this acquisition, and the fact that the group considered buying CS Holdings during the year, he says EOH is not on an acquisition drive.
"Acquisitions are not an opportunistic thing for us. They`re a strategic thing. We are very cautious about making acquisitions, as you would have seen when we decided not to acquire CS Holdings. Acquisitions have to fit the organisation."
CEO Asher Bohbot is upbeat about the group`s future. "The increase in spend in consulting, technology and outsourcing, together with rapid deployment of new processes and systems in the public and private sector, bodes well for our future growth," he says.
"Together with our large customer base, we see great things ahead for the group."
Bohbot says the group had hoped to have finalised its black economic empowerment (BEE) deal by now, but was expecting to do so shortly.
The initiative involves allocating a minimum stake of 25% in the group to previously disadvantaged staff members through the creation of a BEE employee trust and an investment into EOH by an empowerment fund.
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