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

      ‘System offline’ scourge to end, says Schreiber – but industry must pay

      23 June 2025

      Why the spectrum gold rush may soon be over

      23 June 2025

      Tech stability key to getting South Africa off damaging financial grey list

      23 June 2025

      Naspers shifts to an AI-first strategy – and it’s paying off

      23 June 2025

      Letter: South Africa risks missing AI wave while world surges ahead

      23 June 2025
    • World

      Watch | Starship rocket explodes in setback to Musk’s Mars mission

      19 June 2025

      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

      Beijing’s chip champions blacklisted by Taiwan

      16 June 2025

      China is behind in AI chips – but for how much longer?

      13 June 2025
    • In-depth

      Meta bets $72-billion on AI – and investors love it

      17 June 2025

      MultiChoice may unbundle SuperSport from DStv

      12 June 2025

      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
    • TCS

      TechCentral Nexus S0E3: Behind Takealot’s revenue surge

      23 June 2025

      TCS | South Africa’s Sociable wants to make social media social again

      23 June 2025

      TCS+ | AfriGIS’s Helen Hulett on how tech can help resolve South Africa’s water crisis

      18 June 2025

      TechCentral Nexus S0E2: South Africa’s digital battlefield

      16 June 2025

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

      8 June 2025
    • Opinion

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

      17 June 2025

      AI and the future of ICT distribution

      16 June 2025

      Singapore soared – why can’t we? Lessons South Africa refuses to learn

      13 June 2025

      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
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • 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 shares are now down 97% from their peak

    EOH shares are now down 97% from their peak

    By Duncan McLeod6 February 2020
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp
    EOH Holdings CEO Stephen Van Coller

    Since their peak in 2016, shares in EOH Holdings — which describes itself as Africa’s largest technology service provider — have plunged by an eye-watering 97%. They have lost more than 50% in the value since 1 January alone.

    There doesn’t appear to be any specific news in recent weeks that’s driving down the share price, which on Thursday fell to just R5.90/share in intraday trading (down over 7%), a far cry from the peak of around R180 in mid-2016. Its market capitalisation has plunged to just R1.2-billion, from north of R20-billion four years ago.

    Though the shares were already falling prior to a pre-closed-period update last Thursday, the update — although not disclosing any financial forecasts — does appear to have triggered further investor anxiety.

    Trading remains under pressure due to the weak macro environment, which has resulted in companies reducing their IT spend

    EOH said in the update that although it’s slowly turning the corner operationally after a very challenging period, legacy clean-up costs and the weak economy have continued to weigh on its performance.

    “Trading remains under pressure due to the weak macro environment, which has resulted in companies reducing their IT spend,” it said.

    Although its core iOCO subsidiary — its traditional IT services business — was “tracking well with key clients maintained”, lingering effects of eight “legacy” public sector contracts “still being exited” would have a negative impact on performance during the reporting period.

    The group is expected to publish its interim results on 7 April.

    Torrid time

    EOH had a torrid 2019 after it emerged that Microsoft had cancelled a partner agreement with the group following allegations of malfeasance in a software supply agreement with the South African department of defence. That prompted CEO Stephen Van Coller to ask law firm ENSafrica to conduct a thorough investigation into all of EOH’s public sector contracts.

    “Following a tough but necessary forensic investigation, ENSafrica has concluded its investigation, allowing EOH to focus on building the business,” it said in the trading update. “The board of directors has agreed to ENSafrica’s recommendation to pursue civil prosecutions against some of the perpetrators identified during the forensic investigation. The board of directors has instructed ENSafrica to commence legal proceedings.”

    Of the legacy public sector contracts still in place, eight contracts out of 54 continue to have a negative impact on the financial performance of the business, it said. “These contracts have a special focus where the operational and financial viability are managed and tracked.”

    EOH raised more than the targeted R1-billion in asset disposals in the 2019 calendar year and said it would continue to pursue the disposal of non-core assets “aggressively” to reduce debt. The biggest sale was of Construction Computer Software, better known as CCS, for R444.4-million. — (c) 2020 NewsCentral Media



    ENSafrica EOH iOCO Stephen van Coller top
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleSAA to stop flying nearly all domestic routes
    Next Article How we’re turning around Cell C, by Douglas Craigie Stevenson

    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

    IoT connectivity management in South Africa – expert insights

    23 June 2025

    Let’s reimagine Joburg using the power of tech, data and AI

    23 June 2025

    Netstar doubles down on global markets while backing SA growth

    23 June 2025
    Opinion

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

    17 June 2025

    AI and the future of ICT distribution

    16 June 2025

    Singapore soared – why can’t we? Lessons South Africa refuses to learn

    13 June 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.