Enterprise Outsourcing Holdings (EOH) has ended its second year as a JSE-listed company with R18.6 million cash, which it says is sufficient to fund future growth.
Revenue for the year to 31 July 2000 increased 80% to R58.98 million (1999: R32.7 million), while profit before interest rose 40% to R10.7 million (R7.7 million).
A net profit of R8.1 million (R5.9 million) was achieved. Headline earnings per share were 31% higher at 16.05c (12.21c).
Financial director Antonio Cocciante says ordinary shareholders` interest was up to R20.1 million from a previous R14.5 million, which was after a write-off of goodwill against reserves. The write-off had the effect of reducing intangible assets from R6.7 million to R6.1 million.
Chairman and CEO Asher Bohbot says the recent technology hype had a good side to it in that it brought IT to the boardroom.
"Now IT is an issue, whereas five years ago it was seen as a necessary evil," he notes.
We will capitalise on opportunities, but we won`t gamble.
Asher Bohbot<I>,</I> Chairman and CEO, EOH
Bohbot says the company has adopted a prudent acquisition strategy. "If the right company comes along, and the people are right, and the business is right, they will join us, but we are not banking on acquisitions for growth."
EOH plans to grow organically overseas, as it has done in SA. Bohbot says the group is replicating itself in Australia and is evaluating various options in the UK.
Bohbot believes EOH can deliver sustainable growth. One of the group`s assets, he says, is the fact that it does not have a "double or quits" culture.
"We will capitalise on opportunities, but we won`t gamble," he adds.
Bohbot says the group`s growth strategy involves expanding its new economy services, aggressively growing its application service provision base, increasing business volume without sacrificing bottom line growth, remaining cash-generative, and establishing similar businesses overseas.
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