EOH turns in a stunner - TechCentral

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EOH turns in a stunner

Asher Bohbot

Asher Bohbot

EOH is seemingly the JSE’s unstoppable IT growth machine. The technology company has again turned in a strong set of financial results, with revenue up by 40% to R5,1bn and headline earnings per share up by 34% to R3,39 in the year ended 31 July 2013.

The company, which has a track record of more than 10 years of growing revenue and earnings significantly faster than the rest of the market, has raised its dividend before tax by 36% to 95c. Cash increased by 45% to R653m, from R452m a year ago.

EOH CEO Asher Bohbot ascribes the strong performance to both organic growth and recent acquisitions. Its strong balance sheet puts it in a good position to make further acquisitions.

Services revenue increased to R3,6bn, a 55% increase over 2012, while software sales rose by 12% to R687m. Infrastructure sales have increased by 13% to R772m. Overall margin was 9,7%.

“We have the people, the financial resources, the agility, the track record, and know-how to continue to grow aggressively in all areas of our business and to expand into new services and territories,” Bohbot says in a statement accompanying the annual results. “Prospects in the rest of Africa are encouraging and we see future growth in identified countries.”

EOH says it will continue to grow its solutions and services businesses through organic growth, complemented by acquisitions. It also regards the public sector as a growth opportunity.

The company’s share price has surged by 88% in the past 12 months, giving it a market capitalisation of R7,2bn. It now has 2 500 customers and employs 6 000 people.  — (c) 2013 NewsCentral Media

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