JSE-listed Enterprise Outsourcing Holdings (EOH) has announced interim results for the six months to January, showing revenue up to R40.348 million, a 42% hike from the R28.506 million recorded for the comparative period.
Net profit climbed 20%, increasing from R4.147 million to R4.997 million. Headline earnings per share rose 26% to 10.39c per share over the six months period.
"Historically, our financials paint a picture of consistent business growth. This set of results is no exception. We are pleased to report a strong income statement and balance sheet. Our cash resources remain more than adequate to fund our growth plans internally," states Asher Bohbot, EOH`s chief executive.
The company`s cash and cash equivalents currently stand at R24.5 million.
"Over this reporting period, we have bedded down our business network and structure, and we have established operations in Australia and Mauritius. Our overseas operations will in time mirror the South African EOH model."
During the period under review, EOH acquired a 100% stake in Enterprise Softworx, sole representative of business application packages for Baan (including iBaan), CODA (financial systems) and Clarus (e-commerce software).
"Softworx`s impressive client base on the one hand, and the extensive skills base of its employees on the other, fits perfectly with our core business and will further enhance our growth in the enterprise systems arena," notes Bohbot.
EOH also offers enterprise resource planning and application service provision solutions from competitor JD Edwards, but EOH management says it views this dual role as nothing more than healthy competition and believes it gives clients a more extensive offering.
The board says the company intends to organically grow both its local operations and its offshore divisions in Australia and Mauritius.
"Business remains healthy. We emphasize our objective to create value for all our stakeholders, maintaining a proactive stance to business development in line with our corporate culture to deliver consistent growth," Bohbot concludes.
The current share price of 125c gives the company a price to earnings ratio of 7.66.
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