EOH seeks growth

By Nicola Mawson, Contributing journalist

Johannesburg, 19 Mar 2007

JSE-listed technology solutions provider EOH aims to grow in the technology, consulting and outsourcing space organically and through acquisitions.

The company, which this morning reported its interim results to end-January, reported revenue up 27% to R301 million from R237 million a year ago. Net profit improved 26% to R21.5 million from R17.1 million.

EOH says it saw growth across the group. "The strong revenue growth continues to be substantially organic, with earnings remaining healthy and growth being funded internally with sufficient cash reserves to support future growth plans," it says in a statement.

"When comparing our growth to the recent report from BMI-TechKnowledge - SA IT Market Sizing and Forecast - our results are well above industry average. This proves we are gaining market share and continue to successfully position the group as one of the best technology and business solutions providers to work for, partner with and invest in," says CEO Asher Bohbot.

New phase

EOH says its aim to provide end-to-end solutions has been bolstered by the addition of infrastructure provision and support, hosting and networking, and the provision of interim skills to EOH customers. "The new phase of growth for EOH is based on the strategy to offer 'end-to-end' solutions to its clients," says Bohbot.

The firm says the range of solutions, offered to both public and private enterprises, bodes well for future growth. "EOH sees the strong market conditions, specifically those in the technology field, continuing with EOH well positioned to capitalise on these. EOH's growth strategy remains focused on organic growth, supplemented by strategic acquisitions," says the company.

Bohbot adds growth can be seen in vertical sectors such as construction, telecommunications and financial services: "The accelerated growth in these industries ripple into the technology sector as these clients seek the help of IT systems and solutions to streamline their business processes. IT remains a growth industry, exceeding overall economic growth."

The company, which operates in the broad spheres of technology, consulting and outsourcing, says its interim results include the business operations and investments of Bromide Technologies from 1 January 2007. EOH acquired Bromide to expand its offerings to clients to include infrastructure offerings as part of the strategy to deliver end-to-end solutions.

"Bromide is a significant player in the infrastructure support services arena, with a large client base and a strong history of delivery and success," it says.

The company also updated the market on its black economic empowerment (BEE) status. "We are proud of our BEE status and believe transformation is an ongoing process, involving all our people," says Bohbot. EOH now has a 31.4% effective black ownership; 38% of group employees are previously disadvantaged individuals, as is 45% of the board.

EOH's shares climbed 1.46% in early trade this morning. By 9.30am, it was trading at R6.95, up from Friday's close of R6.85. Its 12-month high is R7.20, while its 12-month low is R5.35.