Listed IT solutions and outsourcing company EOH reported revenue 43.5% higher, to R2.4 billion, for the full year, on the back of organic and acquisitive growth.
EOH was listed on the JSE in 1998 and has reported revenue growth of more than 40% each year since then. It has set itself the target of achieving R4 billion revenue in the 2014 financial year.
CEO Asher Bohbot says the company is ahead of its targeted growth. “But it's not about taking a point in time and chasing it.”
Bohbot says about 60% of the company's growth for the year was organic, with the balance coming from acquisitions. He expects more aggressive growth in the future, but will not indicate a percentage rate as EOH is not independent of the industry.
For the year to July, the company reported profit before tax 56.5% higher, to R234.4 million. Earnings per share grew 35.4%, to 197.9c, while headline earnings per share gained 35.2%, to 197.6c.
Previously, EOH expected earnings and headline earnings per share to be between 30% and 40% higher for the year to July.
Services focus
During the year, EOH's primary focus was to increase its managed services, Microsoft and business process outsourcing (BPO) health businesses. The company made several acquisitions in these areas.
EOH bought TSS Managed Services, which delivers services to the public sector, for R130.5 million. TSS's results are only included from 14 June. Bohbot says the public sector accounted for about 22% of its revenue without cannibalising other business units.
In the Microsoft infrastructure, applications and development space, it bought Belay Solutions for R55.9 million. Belay contributed to EOH's results from 3 February.
During the year, the company also launched its BPO health offering, after buying the Elixir Group and Pinnacle Health Solutions for a total of R72 million. These businesses have added to EOH's turnover from October last year.
EOH broadened its resourcing business by buying Compensation Technologies Holdings with effect from 1 August 2010 and its legal BPO service offerings by acquiring CLS Consulting Services with effect from 1 March.
The company also bought several small businesses in line with its cloud strategy, none of which are material. No operations were closed off or disposed of during the year.
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