JSE-listed EOH has almost hit its R4 billion revenue target a full two years early, but has no intention of publicly declaring a new aim.
The group yesterday released its results for the year to July. Turnover gained 50%, to R3.6 billion, while pre-tax profit moved up to R339.9 million - a 45% improvement. The group declared a 70c dividend, up from last year's 48c.
CEO Asher Bohbot says EOH is entering a new phase of being a “big boy” in the neighbourhood and expects to grow without needing the economy to tick up substantially as its market share is still small.
In March 2010, the company has set itself the target of achieving R4 billion revenue in the 2014 financial year, which would require it to grow revenue 27.5% each year. Bohbot says: “We've got there.”
New opportunities
Its targeted growth areas include infrastructure and application managed services, cloud offerings, enterprise applications, information management, business process outsourcing, security, the public sector and intelligent infrastructure.
EOH currently has 4 700 people and 3 500 customers. It has recently made several acquisitions, including 100% of Siemens IT Solutions and Services South Africa. Bohbot says it is going through a shift in its strategy and is winning bigger deals.
All areas of EOH's business saw growth during the year, with a further shift to services in line with EOH's strategic intent. Services revenue increased 61%, to R2.3 billion, while software sales gained 28%, to R614.9 million. Infrastructure sales moved up 39%, to R683 million.
There are opportunities to grow EOH's solutions and service offerings and to strengthen EOH's industry verticals, says Bohbot. “We have the resources, track record, know-how, ability and capability to continue to grow aggressively. Prospects in the rest of Africa are encouraging and EOH sees opportunities in this territory,” adds Bohbot.
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