Despite the fact that it is now a large technology services company that employs 10 000 people, JSE-listed EOH continues to grow as if it’s still a young business. For the year ended 31 July 2015, it has reported a 29% improvement in headline earnings per share and hiked its dividend by 25% to R1,50/share.
For the full-year period, revenue increased by 35% to R9,7bn, while profit after tax leapt by 41% to R692m and cash increased by 56% to R1,7bn.
The growth, as always with EOH, was both organic and acquisitive. It is focusing particular effort on expanding outside South Africa and joined forces with Twenty Third Century Solutions to expand its activities in Africa.
During the year, it also acquired the businesses of Construction Computer Software (CCS) as well as Managed Integrity Evaluation and Afiswitch (MIE Group), along with 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.
EOH said revenue from services increased by 27% to R7bn. Systems integration activities account for 36% of services revenue, while revenue from outsourcing accounts for 46%. Sales from software increased by 60% and from infrastructure products by 58%.
“EOH has the people, the scale, the offerings, the financial resources, the agility and the know-how to continue to grow aggressively,” said CEO Asher Bohbot in a statement.
EOH’s share price closed on Tuesday at R158,95. The counter has added 58% in the past 12 months. Over five years, it’s climbed by 1 144%. — © 2015 NewsCentral Media
