EOH tops R1bn mark

Listed outsourcing company EOH passed the R1 billion revenue mark in the year to July, the company says.

In a Stock Exchange News Service announcement released this morning, EOH says it “crossed the billion-rand turnover milestone with ease. This year marked EOH becoming one of the top five IT service providers in Southern Africa and the largest enterprise applications provider in our territory.”

The company is “satisfied” with its performance. Revenue was up 32%, to R1.255 billion, while profit before tax improved 27.3%, to R116.5 million.

Earnings per share were up 25.5%, to 120.7c, and headline earnings per share improved 25.9%, to 121.9c. As a result, the company increased its dividend payout by 20%, to 30c.

EOH says its balance sheet is “strong with no debt and substantial cash resources to support future growth and sustainability”.

At the beginning of the second half of the year, EOH was appointed as the long-term sole representative of CA in Southern Africa. CA is the fourth-largest software company in the world.

“This partnership puts EOH squarely as a first-tier software and IT service provider in our region,” it says.

The company has also put measures in place to allow it to double in size through creating a strong leadership team. EOH says “the local economic environment is showing signs of improvement with customers undertaking IT initiatives beyond the maintenance and support of their existing IT investment”.

“The EOH brand is now well established, we have a solid customer base of over 2 500 clients, a wide spread of offerings, a strong annuity base and a healthy balance sheet.”