EOH lifts revenue by 42% - TechCentral

EOH lifts revenue by 42%

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Asher Bohbot

JSE-listed technology services group EOH has turned in a solid performance in its 2014 financial year. In the 12 months to 31 July 2014, it lifted headline earnings per share by 32% to R4,47 on the back of a robust improvement in revenue, which rose by 42% to R7,2bn.

Profit after tax increased by 48% to R492m, while cash increased by 63% to nearly R1,1bn, from R653m a year ago. The board declared a gross dividend of 120c/share (102c/share after dividend tax), up from 95c/share before.

“The growth is attributable to a combination of strong organic growth and recent acquisitions,” EOH said in notes accompanying the results. “Organic growth accounted for 54,4% of the year-on-year growth and contributed 49,3% of the growth in profit before tax.”

EOH, which employees 8 000 people, says it intends to grow “aggressively” by developing new solutions and business areas and enhancing industry-specific businesses. “Growth will be focused on outsourcing IT and processes, information management, analytics, mobility and digitalisation,” said CEO Asher Bohbot. “Industrial technology will be another major growth area.”

He said EOH will begin distributing its own niche software products internationally. “This growth is significant in both size and strategic importance to EOH’s future,” said Bohbot. The public sector in South Africa is also a big focus area for the group.

Bohbot said EOH has also made good progress in expanding elsewhere in Africa and now has a presence in 29 countries. “EOH plans to increase its in-country presence by increasing its service offerings and through partnerships, joint ventures and acquisitions.”

EOH’s share price was last quoted at R99,50, just shy of its all-time high of R100. It has added 46,3% in the past 12 months, giving it a market capitalisation of R11,8bn.  — © 2014 NewsCentral Media

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