EOH`s annual results for the year to July reflect a surge in gross profit, boosting the share price more than 3%, or 15c, to 500c in mid-morning trade.
The business and technology solutions provider reported a swell in gross profit of 59.6%, from R29.175 million to R46.551 million.
The growth is a combination of business opportunities created through the M-IT acquisition earlier in the year and a growth in the volume of operations, says Asher Bohbot, CEO of EOH.
Revenue rose 40.3%, from R299.53 million to R420.22 million. However, due to an increase in income taxation expense, net profit grew 24.4% from R19.12 million to R23.8 million.
Current assets of R157.04 million (2004: R133.88 million) compare with current liabilities of R120.09 million (2004: R75.55 million), while cash and cash equivalents is R68.35 million.
The company declared a cash dividend of 11.5c per share, while headline earnings per share increased by 25.9%, from 42.8c to 53.9c.
Bohbot is bullish about the upcoming financial year, seeing opportunities for growth through the creation of new business opportunities and further acquisitions.
"EOH will acquire a company if we see a gap in the EOH offering, or there is a similar offering out there that will fit into the EOH business model," says Bohbot.
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