In brief:
* Group revenue increased by 28% to R559 million (2008: R436 million)
* Profit before tax increased by 27% to R52 million (2008: R41 million)
* Headline earnings per share up 28% to 54 cents (2008: 42 cents)
* Earnings per share up 27% to 53 cents (2008:42)
EOH, one of South Africa's leading technology and business solution providers listed on the software and computer services sector of the JSE, today announced solid interim results for the six months ended 31 January 2009.
EOH is pleased with its strong set of interim results. The growth for the period is largely organic complemented by recent acquisitions. The balance sheet is strong with no debt and substantial cash resources to support future growth and sustainability.
“Although we see the macro environment as challenging, we believe that EOH is well positioned to take advantage of market opportunities enabled by its track record, reputation, strong balance sheet and cash reserves,” says Asher Bohbot, CEO, EOH.
EOH's revenue is derived primarily from the provision of technology services, which includes consulting, systems implementation and integration and managed services; software licence and maintenance revenue and the sale of infrastructure products. The company's annuity business accounts for 43% of its revenue.
Bohbot says EOH is very positive about the company's appointment as the sole representative of CA in southern Africa: “It is a great privilege to represent the fourth largest software vendor in the world. We 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.”
During the six months, EOH acquired the business of Highveld PFS (“Highveld”) with effect from 1 August 2008. Highveld is a contract management business and registered labour broker, and has significantly enhanced EOH's Global Resourcing business. It also provides a resource base of contractors for other EOH businesses and the opportunity to further skill resources through EOH's training entity, EOH Academy.
Another acquisition was that of REO Consulting, a company providing remote technology support services, with effect from 1 October 2008. Bohbot says this will further enhance EOH's annuity income as well as opportunities the company will be seeking within hosting and networking, software support contracts, call centre, service desks and managed services.
In its 11th year of business, EOH has an AA black economic empowerment rating (Level 3 contributor) and has progressed its enterprise development initiative. The company has 34.3% broad-based effective black ownership, of the Group's 1 600+ employees, 47.5% are black, as is 55% of EOH's board of directors.
EOH remains committed to inclusive transformation involving all its people and stakeholders.
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