EOH restructuring sees CEO relinquish post
A major restructuring exercise at IT services company EOH has seen CEO, Zunaid Mayet, relinquishing his role.
In a statement this morning, the JSE-listed company said it is reconfiguring the group into two distinct and independent businesses, each with its own CEO, unique brand and identity, business model, growth and go-to-market strategies.
This, as the EOH share price has seen a massive drop recently. In the six months to 31 January, EOH said its results were hurt by political uncertainty.
A tough macro-economic environment saw EOH headline earnings drop by 23% to R458.4 million for the half year, while earnings before interest, taxes, depreciation and amortisation fell almost 8%, to R1 billion. Operating profit from continuing operations amounted to R784 million, a 6% drop year on year.
According to EOH, the creation of the two independent businesses under EOH Holdings will be completed by 1 August. It notes the ICT business will operate under the EOH brand.
The specialised solutions for high-growth industries businesses will operate under the newly launched NEXTEC brand.
The EOH Holdings corporate structure will be responsible for corporate finance, corporate strategy, group reporting, investor relations, risk and compliance. In addition to the growth expected from the two businesses described above, EOH Holdings will drive growth in the areas of innovation, own IP software, international business and emerging technologies.
As a result, EOH says Mayet has been appointed as CEO of NEXTEC, adding Mayet has opted to relinquish his role as CEO of EOH Holdings to assume this role.
Rob Godlonton has been appointed as CEO of the EOH branded business, the company notes, pointing out the board is in the process of finalising the appointment of a CEO for EOH Holdings.
The appointee is highly regarded, with a solid track record and a strong background in corporate finance, investment banking and technology, the company says. Further details on the new CEO will be made available in the coming weeks.
To further strengthen governance across the group and to support the new business model, EOH Holdings has decided to reconfigure its board.
Jesmane A Boggenpoel has been appointed independent non-executive director, chairperson of the governance and risk committee and a member of the audit committee. EOH says Boggenpoel is an experienced business executive and a former head of business engagement for Africa at the World Economic Forum, based in Switzerland.
She has served on the boards and committees of various South African and international, public and private sector organisations as a non-executive director.
Ismail Mamoojee has been appointed independent non-executive director, chairman of the audit committee and member of the governance and risk committee.
The following directors have resigned from the EOH Holdings Board, with effect from 1 July: Lucky Khumalo, after serving as a non-executive director; Brian Gubbins, who will continue in his executive role in the business; Rob Godlonton, who will continue in his executive role in the business; Ebrahim Laher, who will continue in his executive role in the business; Jehan Mackay, who will continue in his executive role in the business; and Johan van Jaarsveld, who will be leaving the group with effect from 31 July.