EOH CEO Asher Bohbot
Photo by: Duane Daws
JSE-listed information technology firm EOH increased revenue by 38.4% to R3.308-billion and profit after tax by 49.4% to R224-million for the six months ended January 31, attributing this to organic growth and acquisitions.
The company reported revenue and profit after tax for the previous comparable period of R2.389-billion and R163-million, respectively.
Headline earnings a share increased by 33.9% to 229.6c from 171.5c, while earnings a share increasing by 30.3%.EOH’s cash increased by 47.5% to R785-million, placing it in a “strong financial position … to ensure sustainable strong future growth”.
The company said in a statement on Wednesday that all its business operations experienced growth; however, the revenue generated by services was the most significant, increasing to R2.357-billion, or by 42%, in relation to the previous comparable period.
Further, software sales increased to R423-million, or by 20.8%, infrastructure increased by 39.3% to R527-million, from R532-million in the period, while EOH’s overall operating margin remained steady at 10.1%.
EOH plans to expand its solutions and service offerings, strengthen its knowledge-based industry services and grow all areas of its business, said EOH CEO Asher Bohbot.
The company expected major growth areas to be in managed services, including cloud and mobility solutions; information technology management; applications, including enterprise applications, information analytics and digitalisation; industrial technologies and business process outsourcing.
“This will be achieved through organic growth complemented by strategic acquisitions,” added Bohbot.
He said EOH planned to continue to grow its public sector activities, noting that the company had the solutions, knowledge, skills and organisational ability to help improve service delivery in this sector.
“As a South African enterprise EOH has the responsibility to contribute in this area in any way it can; the public sector represents a major business opportunity and will form part of our future,” noted Bohbot.
The company said it would continue its “foray into Africa” by capitalising on activities in 15 African countries, excluding South Africa, in which it operated, by increasing its in-country presence and offering the full breadth of EOH’s products and services.