JSE Securities-listed consulting, technology and outsourcing group EOH this morning reported a 26% jump in revenue, to R237 million, and a profit before tax increase of 61%, to R27 million, for the six months to 31 January.
Headline earnings per share also increased by 25%, to 29c, from 23c during the corresponding period in 2005.
The company reported increased operating income of R26 million and a rise in headline earnings to R17 million.
"The operating margin improvement is attributable to the continued focus on the operations efficiency, the centralising of our facilities and the implementation of a shared services model. During the year we have invested in new infrastructure, facilities and technology, as well as in new business initiatives that are yet to reach maturity," says CEO Asher Bohbot.
He adds that the group`s organic growth positively impacted its results, coupled with a robust business model and approach.
"Companies can no longer afford to treat IT projects in isolation. It is imperative to adopt a holistic view, treating each element as important. Our approach is to offer strategic consulting coupled with technology enablement and finally, outsourcing and maintenance. This works extremely well in both the private and public sectors," says Bohbot.
The group reports that the implementation of the broad-based EOH PDI (previously-disadvantaged individual) employee ownership trust has also been completed during the reporting period.
"The EOH Mthombo Trust is now fully operational. With the shares transferred to the trust, EOH now has 25.1% black ownership, 38% of EOH employees are PDIs, so is 40% of our board. In addition, EOH is making progress in our seven-point strategy of equity ownership, management and control, employment equity, skills development, preferential procurement, enterprise development and corporate social investment. We see transformation as an ongoing process to which all our people are committed and are involved in," says Bohbot.
He points out that EOH`s growth strategy will remain focused on four elements: 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.
"The wide range of solutions offered to various industries in both the public and private sector, in conjunction with a well proven business model, bode well for our future growth. EOH sees the strong market conditions, specifically those in the technology field, continuing with EOH well positioned to capitalise on these."
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