Fast-growing technology services group EOH has reported another strong set of numbers, with headline earnings per share in the six months ended 31 January 2014 up by 33,9% on the back of a 38,4% improvement in revenue.
The strong upward move wasn’t enough to push up the share price, however, which was trading down by 0,5% shortly after 10am on Wednesday. The counter has added more than 90% in the past 12 months and has climbed by nearly a third in the past three months, giving it a trailing price to earnings multiple of 26 times and a market capitalisation above R10bn.
EOH, which is listed on the JSE, reported that revenue for the six months rose to R3,3bn, with R785m in cash on its balance sheet. It attributed the strong performance to both organic and acquisition-led growth.
In the past year, it has made several acquisitions worth a combined R756m of which R468 million is payable in cash. The biggest acquisition was of the Sybrin group of companies for R296m. Sybrin develops software for the financial services sector and other industries.
The aggregated revenue of the acquisitions included in the latest results was R310m, netting a profit before tax for EOH of R33m.
EOH CEO Asher Bohbot said the company plans to continue to grow its activities in the public sector, which he said represents a “major business opportunity”.
The company will also continue its expansion elsewhere in Africa, with a focus on 14 countries, where it plans to increase its presence, offering the full breadth of EOH products and services. — (c) 2014 NewsCentral Media
