A turnaround at IT services group iOCO – previously EOH Holdings – is gathering pace. The group said on Tuesday in a trading update to investors that it expects to swing to positive headline earnings per share for the year ended 31 July 2025 when it reports its results at the end of October.
The numbers disclosed in the trading update all show a big improvement under the new management team, led by newly appointed co-CEOs Rhys Summerton and Dennis Venter:
- Ebitda, or earnings before interest, tax, depreciation and amortisation, is expected to grow by between 60% and 70%, reaching between R490-million and R525-million;
- Operating profit is expected to grow by 260% to 285%, reaching between R395-million and R420-million;
- Headline earnings per share – a financial metric watched closely by South African investors – is expected to range between 35c and 45c, compared to the headline loss per share of 21c a year ago;
- Earnings per share is expected to range between 35c and 45c, compared to the loss per share of 10c before; and
- There has been continued strengthening of the balance sheet, with net debt to Ebitda improving from 2.7x to below 1x.
Strategic reset
“The strategic reset started just over a year ago when the new leadership team put in place a three-step transformational plan with a core focus to drive iOCO’s efficient operating model, business autonomy, resource and capital allocation,” it told investors in the trading update.
“The early gains from our transformation are beginning to show, reaffirming our ambition to position iOCO as a premier technology partner in South Africa, the Middle East and the UK… Besides the vastly improved profitability translating into strong free cash flow generation, most satisfying is the inflection to revenue growth in the second half of FY25.”
Read: Big management shake-up at iOCO as co-CEOs appointed
iOCO, whose shares price has climbed by 160% in the past 12 months, said it expects to publish its full-year numbers on 28 October. TechCentral will provide its readers with coverage of the results on the day. — © 2025 NewsCentral Media
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