Despite the tough economic environment, technology group EOH has lifted headline earnings per share (Heps) by 24% to 359c on the back of a 30% improvement in revenue to R6bn in the six months ended 31 January 2016.
Profit after tax for the six months increased by 36% to R464m, while cash increased by 6% to R1,6bn.
As it has done in previous reporting periods, EOH attributed the good growth to a combination of strong organic growth and acquisitions. “Organic growth accounted for 54% of revenue after considering all acquisitions since 1 February 2015,” it said.
“The growth came from all segments, with the strongest growth coming from software sales given EOH’s concerted drive to sell its own niche software and intellectual property.”
Overall services revenue rose by 28%, software sales were up by 87% and the sale of infrastructure products climbed by 7%.
South Africa contributed 87% of revenue, with the rest of Africa accounting for a further 9%. The public sector made up a quarter of all revenue.
During the period, EOH acquired two significant businesses.
The first was the GCT group, which focuses on utility management via smart metering solutions and analytical, forensic and investigative software solutions for the security sector. It was acquired with effect from 18 November 2015 for R868m.
The second, Mehleketo, focuses on rail technology, and was acquired with effect from 18 August 2015 for R205m.
EOH CEO Asher Bohbot said a focus for the group is growing its business in the rest of Africa as well as in the Middle East.
“This growth is expected to accelerate by increasing our in-country presence, forming joint ventures and partnerships and acquiring new businesses,” Bohbot said. — © 2016 NewsCentral Media