JSE-listed technology services company iOCO, formerly known as EOH, is forging ahead with its share buyback scheme.
On Friday, iOCO announced it has repurchased an additional 2 183 365 shares under its ongoing share buyback programme.
The shares were bought back between 2 January and 29 January, at prices ranging from 431 cents to 465 cents per share.
According to the firm, the total value of the repurchased shares amounted to R9 642 467, excluding transaction costs.
In January, the JSE-listed IT services group announced it repurchased 2 344 669 ordinary shares between 29 November and 31 December.
The shares were bought at prices ranging between 398 cents and 400 cents per share, for a total consideration of R9.38 million, excluding transaction costs.
In its latest annual financial results published in October, iOCO showed a significant swing back to profit with earnings per share of 40 cents, compared to a loss the previous year, driven by strategic restructuring and cost management.
Key highlights included an operating profit of R421 million and profit attributable to owners of R250.8 million, with no dividends declared.
“This year is a turning point as we move to sustainable profitability and focused delivery,” co-CEO Rhys Summerton said at the time.
Ensuring financial flexibility
In Friday’s statement, the firm says since 1 August, iOCO has cumulatively repurchased 6 475 392 shares, at a total cash value of R26 477 549, representing approximately 1% of the company's issued share capital.
It points out that repurchased shares are held as treasury shares. Following the repurchase, 8 561 999 shares are currently held as treasury shares.
iOCO explains that the board has evaluated the impact of the repurchase and is of the view that proceeding with it is in the best interests of the company, while ensuring sufficient financial flexibility to deliver on its future strategic objectives and capital allocation priorities.
It says the board has considered the effect of the repurchase and believes that for a period of 12 months following the date of this announcement, the company and the group will be able in the ordinary course of business to pay its debts, and assets will be more than the liabilities.
“For this purpose, the assets and liabilities were recognised and measured in accordance with the accounting policies used in the latest audited annual group financial statements; the share capital and reserves of the company and the group will be adequate for ordinary business purposes; the working capital of the company and the group will be adequate for ordinary business purposes; and the company and the group have passed the solvency and liquidity test and since the test was performed, there have been no material changes to the financial position of the group,” says the company.
Following the repurchase, it adds, the extent of the general authority granted by shareholders at the annual general meeting held on 3 December 2025 to repurchase shares outstanding is 121 139 857 ordinary shares, representing 19.3% of the total issued share capital of iOCO, at the time the general authority was granted.
iOCO notes the repurchase was made through the order book of the JSE, without any prior understanding or arrangement between the company and the counter parties.
It reveals that the repurchase was funded from the group's available cash resources. According to the firm, cash balances decreased by R9 642 467 as a result of the repurchase. The impact on other areas of the company's financial information is immaterial, it says.
Programme set to continue
“Shareholders are further advised that iOCO, through a wholly-owned subsidiary, has entered into a share repurchase programme in terms of which the company may repurchase up to a maximum of four million of its ordinary shares, in accordance with the authority granted by shareholders at the annual general meeting held on 3 December.”
It explains that the repurchase programme will include repurchases during the closed period in respect of the company's interim financial results for the six months ended 31 January, which are expected to be released on or about 18 March 2026.
In terms of the share repurchase programme, iOCO says shares will be repurchased at a price not greater than 10% above the volume weighted average trading price of iOCO shares over the five business days immediately preceding any particular repurchase.
It warns that the share repurchase programme may be discontinued at any time and the company has no obligation to repurchase any amount of shares under the programme.
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