Consulting, technology and outsourcing firm EOH reached the R500 million revenue mark in its latest year-end results to end-June, released this morning.
The company, which yesterday issued a cautionary announcement, stated revenue was fuelled by organic growth. EOH, which has been in business for eight years, said the results were in line with expectations.
EOH reported a 53% increase in profit before tax to R56 million, while revenue increased 20%, to R503 million. Headline earnings per share are up 20% to 63c.
<B>Fast figures</B>
EOH figures for the year to June 2006
2005 figures in parenthesis
Revenue: R503m (R420m)
Profit before tax: R56m (R36m)
Margin: 11% (9.3%)
Headline earnings per share: 63c (53c)
Cash-on-hand: R84m (R68m)
Current assets: R211m (R157m)
Current liabilities: R155.3m (R155m)
Current ratio: 1.36 (1.01)
The company, which has R84 million in cash-on-hand compared to R68 million last year, intends to expand its set of offerings. CEO Asher Bohbot commented that the company aims to provide a more complete set of offerings, which will include technology infrastructure.
"This will enable our clients to select EOH as a single vendor for all their technology needs."
EOH is confident market conditions will remain positive, and intends growing further through organic and acquisitive growth. "Our growth is impressive, considering it was largely organic with no material acquisitions in the last two years," said Bohbot.
The improvement in its operating margin, from 9.3% to 11%, was attributed to a focus on operational efficiency and the implementation of its shared services model.
During the 2006 year, the company also invested in new infrastructure, facilities and technology. "Furthermore, the business has embarked on new business initiatives, which include performance management, IT governance, adaptive manufacturing and application delivery networking," added Bohbot.
EOH, which is 26% black-owned, declared a dividend of 14c a share, up from 11.5c last year.
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