EOH Holdings will likely soon be known as iOCO Limited, after the JSE-listed IT services group’s principal operating subsidiary.
Alongside the group’s annual financial statements, which were published on Wednesday, EOH told shareholders that it intends recommending to them that they approve a proposal to change the name at its AGM in November.
“The board of directors of the company believes that the proposed name change aligns with its strategic objectives and branding initiatives. The resolutions to change the name and subsequently amend the company’s memorandum of incorporation will be presented to shareholders at the AGM,” it said.
EOH, which was once a darling of South African investors, almost hit the wall a few years ago after reports of corruption in the group’s public sector dealings emerged at Zondo inquiry into state capture corruption.
A clean-up by former CEO Stephen van Coller, which included selling some of the group’s prized assets to reduce debilitating debt, ensured it survived the fallout, albeit that the group is now a shadow of its former self, with a share price languishing at a fraction of its peak.
Now led on an interim basis by Marius de la Rey, EOH on Wednesday reported a 3.1% decline in group revenue to R6-billion (-0.3% from continuing operations). Gross profit margins remained steady at 27.3%.
Debt
Operating profit of R112-million was down 17% but included once-off restructuring costs. Net finance costs reduced by 28% to R118-million. The group’s loss per share was -10c, and improvement from a loss of -13c previously. The headline loss per share improved by 99% to -0.21c (-21c).
Group net interest-bearing bank loans stood at R644-million after repaying a further R41-million of debt during the 2024 financial year. – © 2024 NewsCentral Media
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