The turnaround at iOCO – the JSE-listed technology services company previously known as EOH Holdings – continues, with the group now even considering acquisitions to help fuel growth in the years ahead.

iOCO reported headline earnings per share of 40c in the 2025 financial year, which ended in July 2025, an improvement from the loss of 0.21c reported in 2024. It also generated significant cash from operations of R566.6-million, compared to R170.6-million a year ago, putting its balance sheet in the strongest position it’s been in for years.

Other key highlights of the financial year included:

Adjusted earnings before interest, tax, depreciation and amortisation (Ebitda) improved by 68% to R516-million;
Interest-bearing liabilities declined to R658.6-million, down from R951.6-million a year ago;
Operating profit jumped 275% to R421-million;
Free cash flow per share improved to 53c from -21c a year ago;
Gross profit margins improved to 28.7% from 27.3% before; and
Total group revenue excluding sold entities was R5.6-billion, down 1.2%.

“Following a successful turnaround, improved financial performance and strong free cash flow, the group will progress its capital allocation strategy along these three priorities: share buybacks, balance sheet optimisation and acquisitions,” iOCO told investors on Monday.

Improving picture

“Acquisitions are expected to complement iOCO’s existing portfolio, enhance its technology offerings and unlock new revenue streams in high-growth sectors,” it added.

This is a remarkable turnaround for iOCO, which until recently had been selling businesses in an effort to reduce its debt pile, which was threatening its long-term survival. Acquisitions were certainly not on the cards.

Based on current trading conditions, iOCO said it expects to report Ebitda of between R580-million and R600-million in the 2026 financial year, which runs through to the end of July next year. It said it also expects “not less than” 60c/share in free cash flow in FY2026.

“The guidance assumes no major disruptions to business conditions within South African and globally, no unforeseen deterioration of the macroeconomic environment, a stable political environment, and no significant tax, interest rate or exchange rate changes in the group’s operating jurisdictions.”

iOCO’s share price closed at R4.25 on Monday before the results were published. Over the past year, they’ve added over 130%, reflecting investors’ growing confidence in the group’s improving financial picture. — © 2025 NewsCentral Media

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