In brief:
* Revenue increased by 35% to R9 734 million (2014: R7 220 million).
* Profit after tax increased by 41% to R692 million (2014: R492 million).
* Headline earnings per share (HEPS) up 29% to 575 cents (2014: 446.6 cents).
* Cash increased by 56% to R1 664 million (2014: R1 065 million).
* Dividend up 25% to 150c.
EOH is the largest technology services provider in South Africa. EOH has been listed on the Johannesburg Stock Exchange (JSE) since 1998 and has consistently delivered strong financial results. EOH is committed to transformation and is a level two contributor and has the highest BBBEE rating of its peers.
Revenue increased by 35% to R9 734 million and profit after tax is up by 41% to R692 million. Earnings per share (EPS) and headline earnings per share (HEPS) have grown by 26% and 29% respectively. Cash has increased by 56% to R1 664 million, placing EOH in a strong financial position, with substantial cash resources to ensure sustainable future growth.
EOH has a wide range of outsourcing, cloud, managed services, industrial technologies and business process outsourcing (BPO) solutions. EOH's 10 000 staff members deliver these services to over 2 000 large enterprise customers across all major industries and has 134 points of presence in South Africa and activities in 32 countries in Africa.
"Driven by our design, build and operate approach, we are able to provide end-to-end solutions across industry verticals. EOH has the widest offerings in our industry," says CEO Asher Bohbot.
During the year under review, EOH will continue with its strategy to consolidate and complement its existing services with strategic acquisitions. EOH embarked on growing its international IP software business and its service offerings in the financial services, telecommunications, energy and local government sectors. EOH also expanded its activities in Africa by joining forces with Twenty Third Century Solutions (TTCS).
During the year, EOH also acquired the businesses of Construction Computer Software (CCS), Managed Integrity Evaluation and Afiswitch (MIE Group) and several smaller businesses. CCS develops and markets software products used by the construction industry and the MIE Group offers electronic verification services using its own proprietary software.
The revenue derived from services increased by 27% to R7 003 million and is further segmented into revenue from systems integration, outsourcing and industrial technologies and accounts for 72% of total revenue. Systems integration activities account for 36% of services revenue and include system applications and technology solutions; software development and integration; cloud solutions; information management; security services; digital solutions; and industry-based consulting services. Revenue from outsourcing activities, which accounts for 46% of services revenue, includes infrastructure managed services; application managed services and BPO.
Industrial technologies services, which includes energy management; automation and control; infrastructure engineering; safety and security solutions and connectivity infrastructure, accounts for 18% of services revenue. The revenue derived from software increased by 60% and the revenue from infrastructure products increased by 58%.
EOH sees its involvement in the public sector as both a responsibility and a business opportunity, and through its wide range of offerings, can contribute to improving service delivery. EOH intends to further increase its involvement in the public sector in all tiers of government - national, provincial and local.
"EOH's success is largely attributable to its unfailing business philosophy that is centred on people," says Bohbot. "We have always strived to attract, develop and retain the best people in the industry with the purpose of creating life-long, mutually beneficial partnerships with our customers and partners. Doing things right first time epitomises the philosophy of EOH," says Bohbot.
Transformation is part of EOH's business strategy and a key philosophy and business objective of EOH. EOH is certified as a Large Enterprise Level 2 Contributor with BBBEE procurement recognition of 156% as a value-adding vendor. Fifty-four percent of EOH's staff and 67% of its board members are black. EOH's current black shareholding is 39%.
EOH believes all businesses have a responsibility to help solve the problem of youth unemployment. EOH launched the successful EOH Youth Job Creation Initiative in 2012, with the aim of working with its business partners, customers and government to stimulate job creation. EOH believes all businesses have a responsibility to help solve the problem of youth unemployment. To date, EOH has engaged with the media and various SETAs (Sector Education and Training Authorities) and formed an EOH-led team to work with its customers and technology partners to give young black people the opportunity to obtain skills in the workplace and to bring offshored jobs back to South Africa. As part of this programme, EOH launched its Internal Learnership Programme in March 2012. In 2013, 620 young people participated in this programme, and in 2014, a further 600 interns were recruited. To date, more than 70% of these interns have been permanently employed by EOH.
This year another 600 interns and learners are participating in EOH's learnership programme. The Youth Job Creation Programme is now a permanent part of EOH's development programme. "We will continue to broaden our scope and build on this programme by stimulating conversations, sharing ideas and supporting customers with similar initiatives. Our objective is to create 50 000 jobs by 2020. To date, the programme has created over 8 000 jobs."
EOH is recognised for the quality of its people and its strong delivery capabilities. "EOH has the people, the scale, the offerings, the financial resources, the agility and the know-how to continue to grow aggressively," concludes Bohbot.
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