Listed outsourcing company EOH wants to grow revenue almost fourfold in the next three-and-a-half years.
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.
Yesterday, EOH reported revenue of R787.3 million, which was 40.6% up on the previous half-year to January. Revenue in the first half of the year was just over 60% of last year's revenue of R1.255 billion.
CEO Asher Bohbot says the company is not promising to meet the revenue target, but does want 20% growth in revenue a year at a minimum. “We are going to do a lot in terms of our annuity revenue,” he says.
The company's revenue growth for the first half of the year was equally split between organic and acquisitive gains. Bohbot says the company will continue to acquire new companies as “acquisitions are part of the psyche of the business”.
Despite EOH's rapid growth in the half year, Bohbot says there is still scope to add to revenue. “Our ability to grow has not been deteriorated by our size.” He explains that the company has already grown turnover faster this year than last year.
Bohbot adds that EOH “would not get 40% growth on pure organic growth”. EOH has targeted new sectors into which to grow, including business process outsourcing. The company is likely to buy an existing business in this area instead of starting from scratch, says Bohbot.
EOH listed on the JSE in 1998, just before the dot-com crash that saw many companies being wiped off the bourse.
The company has constantly grown both revenue and headline earnings per share in the past 10 years, defying the recent recession that resulted in the collapse of companies across the globe.
Yesterday, EOH's share closed 6.67% higher on the back of the results, to end the day at R11.20.
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