EOH Holdings shares rallied by almost 62% at their peak on Tuesday after the JSE-listed IT services group issued a statement saying it was making good progress in dealing with debt and was coping well through the Covid-19 lockdown.
The shares rallied to R5.34, from Monday’s R3.30 close, shortly before 10am in trading in Johannesburg. They later gave up some of that gain and closed up 37.9% at R4.55 apiece.
EOH said before markets opened on Tuesday that its financial performance was “resilient” in the quarter ended 30 April.
Though revenue experienced “some downward pressure as a result of the lockdown”, the group delivered positive earnings before interest, tax, depreciation and amortisation as a result of cost management and the elimination of unnecessary spend. It also saw positive cash generation from operations for the quarter.
It was also making solid progress with a debt deleveraging plan with its lenders. Since 1 August 2018, EOH has repaid nearly R1.8-billion to lenders, the group said. — (c) 2020 NewsCentral Media