JSE-listed outsourcing company EOH wants to make more acquisitions in a bid to add meat to its current offerings.
The company yesterday reported its interim results and said revenue was boosted through organic growth and acquisitions. Revenue jumped 44.1%, to R1.6 billion, in the six months to January, while profit before tax improved 54.9%, to R169.2 million.
CEO Asher Bohbot says about R105 million in turnover came through acquisitions in the first half of the year. Traditionally, acquisitions and organic growth are equal contributors to top line gains.
Bohbot explains the company is targeting two types of acquisitions, the first being to enter new areas, while the second is to expand on its current offerings. He expects the bulk of the company's buyouts to come from adding to what it already provides.
Among the areas EOH aims to expand is its business process outsourcing (BPO) unit. The company offers knowledge process outsourcing, IT outsourcing and BPO to several sectors, including manufacturing, government, telecoms and financial services.
Bohbot says EOH will not be “mechanical” in its buyout strategy, but will rather take advantage of opportunities that meet its criteria of adding value. He notes that EOH does not have to acquire to grow.
EOH has set itself the target of achieving R4 billion revenue in the 2014 financial year. In the past few months, it has bought Airborne Consulting and Stanley Security Solutions SA.
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