EOH is hungry for acquisitions

By Siyabonga Africa, ITWeb junior journalist

Johannesburg, 18 Mar 2009

EOH is well positioned to acquire smaller businesses and take up partnerships this year, it says. The technology and business solution provider reported solid interim results for the six-month period ending 31 January 2009.

"We`d obviously be looking at smaller, unlisted, private companies who are looking for a bigger brother to support them in these tough economic times," says EOH CEO Asher Bohbot.

Bohbot believes EOH is in a strong position to dominate the business consulting, technology and outsourcing solutions industry in SA. He says the last couple of weeks have seen positive signs of growth and stability in the country, despite the current economic downturn.

"SA has been affected by the economic downturn, but not so much as other countries. The 2010 Fifa World Cup and our strong banking sector will ensure a quicker economic turnaround," says Bohbot. "We think that, in the short-term, we will be able to aggressively pursue opportunities in areas of operation due to those aforementioned factors."

Bolstering revenue

An EOH statement says it increased its revenue by 28%, to R559 million, compared to R436 million in the same time the previous year. The company says its revenue was bolstered by its recent acquisitions of two companies.

We'd obviously be looking at smaller, unlisted, private companies who are looking for a bigger brother to support them in these tough economic times.
Asher Bohbot, CEO, EOH

In August last year, EOH acquired Highveld PFS, a contract management business and registered labour broker. EOH says the acquisition has enhanced its global resourcing business.

It also acquired remote technology support services company REO Consulting, in October. Bohbot says the acquisition would bolster EOH`s annuity income, as well as opportunities the company would seek in markets such as hosting and networking, call centres and managed services.

Future strategies

Bohbot is adamant EOH`s representation of CA in Sub-Saharan Africa will boost the company. The technology and business solutions specialist absorbed CA earlier this year and became its sole representative in the region.

"We plan on investing more in our skills base to deliver CA technologies to our clients. We also see this as a major opportunity to further entrench EOH`s range of technology solutions and products, and intend not only to extend the reach of CA products into our existing client base, but also to sell new products and solutions to CA`s vast customer base."

The JSE-listed company says, besides its acquisitions, it believes it can grow its business due to its balance sheet, which shows no debt and its cash reserves which can support future growth and sustainability.

EOH`s profit before tax increased by 27%, to R52 million, compared to R41 million last year, and its headline earnings rose by 28%, to 54c, against 42c in 2008. Earnings per share went up by 27%, to 53c, compared to 42c the same time last year.