South African business and technology solutions provider EOH is looking towards strong organic growth to expand its business, but has not turned its back on acquisitions.
Executive director Rob Sporen says the company is no longer seeking small acquisitions, but will focus on targets that are "strategically right".
"Eventually, we are seeking to have a 50:50 split between organic growth and acquisitions," he says.
However, while the company has not made an acquisition during the past 18 months, it has expanded its business through organic growth, a factor that has been attributed as a key revenue driver recently, notes Sporen.
He says the launch of the group`s Mercury Africa and F5 units is an example of the type of organic growth EOH is keen to drive forward. Both units have become the company`s top revenue streams. F5 is a foreign networking optimisation solution vendor, which, until now, has had no local representation.
EOH also conducted regional growth, Sporen points out, increasing its presence in the Free State and the Eastern Cape.
However, he suggests that EOH may be eyeing an acquisition in the near future, saying: "There is always a shortlist [of potential targets]."
While the company does not have a strong Africa strategy, Sporen reveals that EOH will also seek to strengthen its position on the continent. Currently, 5% of the group`s total revenue is generated from outside SA.
"We are seeking to build on existing relationships and work more closely with our local partners," he says.
EOH today reported a 26% increase in revenue, to R237 million, with profit before interest increasing by 61%, to R27 million, for the six months to 31 January.
The company further indicated that it would remain focused on organic growth of its business units, acquisitions that fit the business culture and model, creating new businesses, and the provision of integrated solutions involving multiple product and service offerings.
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