Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News

      Starlink to South Africa: ‘We are ready to invest’

      17 June 2025

      Vodacom CEO Joosub bags R71m in pay – but taxman will take a big cut

      17 June 2025

      Major rift opens between Microsoft and OpenAI

      17 June 2025

      South Africa pioneered drone laws a decade ago – now it must catch up

      17 June 2025

      South African AI energy start-up in R32m funding round

      17 June 2025
    • World

      Trump Mobile dials into politics, profit and patriarchy

      17 June 2025

      Samsung plots health data hub to link users and doctors in real time

      17 June 2025

      TechCentral Nexus S0E2: South Africa’s digital battlefield

      16 June 2025

      Yahoo tries to make its mail service relevant again

      13 June 2025

      Qualcomm shows off new chip for AI smart glasses

      11 June 2025
    • In-depth

      Grok promised bias-free chat. Then came the edits

      2 June 2025

      Digital fortress: We go inside JB5, Teraco’s giant new AI-ready data centre

      30 May 2025

      Sam Altman and Jony Ive’s big bet to out-Apple Apple

      22 May 2025

      South Africa unveils big state digital reform programme

      12 May 2025

      Is this the end of Google Search as we know it?

      12 May 2025
    • TCS

      TechCentral Nexus S0E1: Starlink, BEE and a new leader at Vodacom

      8 June 2025

      TCS+ | The future of mobile money, with MTN’s Kagiso Mothibi

      6 June 2025

      TCS+ | AI is more than hype: Workday execs unpack real human impact

      4 June 2025

      TCS | Sentiv, and the story behind the buyout of Altron Nexus

      3 June 2025

      TCS | Signal restored: Unpacking the Blue Label and Cell C turnaround

      28 May 2025
    • Opinion

      Beyond the box: why IT distribution depends on real partnerships

      2 June 2025

      South Africa’s next crisis? Being offline in an AI-driven world

      2 June 2025

      Digital giants boost South African news media – and get blamed for it

      29 May 2025

      Solar panic? The truth about SSEG, fines and municipal rules

      14 April 2025

      Data protection must be crypto industry’s top priority

      9 April 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Wipro
      • Workday
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » IT services » EOH rolls out new iOCO brand, warns of tough year

    EOH rolls out new iOCO brand, warns of tough year

    By Duncan McLeod1 August 2019
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp
    EOH Holdings CEO Stephen Van Coller

    EOH Holdings has renamed its ICT services business iOCO, the JSE-listed technology group said in an update to shareholders on Thursday.

    The update comes ahead of EOH’s full-year results, which will be published in mid-October.

    It described the creation of iOCO as “a key milestone in the internal reorganisation process, aimed at simplifying the ICT business, integrating client offerings under one brand, driving governance imperatives, and aligning the service delivery model and offerings for the cloud economy and fourth Industrial Revolution”.

    The extensive restructuring comes as EOH continues to battle the fallout flowing from allegations of corruption

    In April, EOH outlined how it would focus the business on three key pillars, namely the ICT business, Nextec (which would focus on new growth opportunities) and intellectual property (IP).

    “Work on the Nextec strategy continues, including how iOCO, Nextec and the IP businesses will work together to optimise value for EOH shareholders, with umbrella shared services being provided by EOH.”

    The extensive restructuring comes as EOH continues to battle the fallout flowing from allegations of corruption involving some of its public sector dealings, including a dodgy Microsoft licensing contract with the department of defence. It said it has strengthened corporate governance significantly in recent months and continues to work through the findings of an ongoing investigation by law firm ENSafrica into malfeasance.

    ‘Under pressure’

    The group said trading conditions for the full-year period have remained “under pressure”. It blamed the weak economy as well as concerns around governance at the company.

    “Some improvement has been noted following the release of the interim update on the forensic investigation being undertaken by ENSafrica on 16 July as clients resume business with the group. However, the benefits will not be realised until after year-end,” it said.

    “This has resulted in revenue remaining under pressure, which has increased further in the second half of the year, in part due to one-off hardware sales not being repeated in the second half of the year.”

    Full-year gross margin is expected to remain flat when compared to the first half of the year, before the impact of discontinued businesses.

    Once-off advisory fees will negatively impact the results, it warned.

    “The core challenge remains ensuring the cost base is appropriate for the business,” it said. “Work in this regard has started on larger line items such as facilities costs, where good progress has been made. However, more work will be required in the new year.”

    It said it has made solid progress in the sale of non-core assets, which it described as “reasonably advanced” but which will continue into the new financial year. “The drag on Ebitda from some of these businesses undergoing closure has reduced meaningfully during the last six-month period when compared to the first six-month period,” it added. (Ebitda is a measure of operational profitability.)

    It has been a challenging six-month period, but the group has made meaningful progress on a number of fronts

    “The ongoing scrutiny of the balance sheet by management, supported by a full audit, is in progress. While the majority of the write-downs were made at half-year, further write-downs are anticipated, although these are not expected to be of the magnitude of those made at the half year.

    “Improved working capital management and the closure of loss-making entities are starting to show positive benefits.”

    “It has been a challenging six-month period, but the group has made meaningful progress on a number of fronts,” said group CEO Stephen van Coller in the update. “I have every confidence that the fundamental strengths of the business and its people will prevail in the longer term notwithstanding the pressures the business is facing.”  — © 2019 NewsCentral Media



    ENSafrica EOH iOCO Nextec Stephen van Coller top
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleNasa space telescope finds ‘first nearby super-Earth’
    Next Article DSL is headed for the scrapheap

    Related Posts

    Blue Label beats Naspers, Vodacom to lead JSE tech rankings

    5 May 2025

    iOCO on the mend as cost rationalisation pays off

    2 April 2025

    Former Dimension Data boss joins iOCO board

    20 March 2025
    Company News

    Altron: a brand journey, a birthday celebration and a bet on Joburg’s future

    17 June 2025

    7 benefits of social media integration in WordPress

    17 June 2025

    Paratus Zimbabwe and PowerTel strike milestone deal

    17 June 2025
    Opinion

    Beyond the box: why IT distribution depends on real partnerships

    2 June 2025

    South Africa’s next crisis? Being offline in an AI-driven world

    2 June 2025

    Digital giants boost South African news media – and get blamed for it

    29 May 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2025 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.