EOH earnings surge 38%

·12 Mar 2014

Listed IT services firm EOH Holdings on Wednesday (12 March) reported a 38.4% rise in revenue for the six months ended January 2014, to R3.3 billion.

Profit after tax was up 49.4% to R244 million with growth attributable to a combination of both organic growth and recent acquisitions.

During the reporting period, EOH made several acquisitions including Sybrin, a developer of software for the financial services and other industry sectors, totalling R756 million.

Sybrin is headquartered in South Africa and has regional offices in Kenya, Zimbabwe, Zambia, Tanzania Rwanda and Mozambique and works across 17 African Countries, Europe and the Middle East.

Headline earnings per share improved 33.9% to 229.6 cents.

Operating profit before interest and impairments was higher at R353.5 million, from R247.7 million in 2013.

EOH says major growth areas are expected to be in Managed Services (including cloud, network solutions and mobility solutions), IT Management, Applications (including enterprise applications, information analytics and digitalisation), Industrial Technologies and Business Process Outsourcing.

“This will be achieved through organic growth, spearheaded by our strategic account initiatives, and strategic acquisitions,” it said.

The group aims to increase its revenue from all areas of the Public Sector – National, Provincial, Local Authorities and State Owned Entities.

EOH said it will continue its foray into Africa and plans to derive more revenue from countries outside of South Africa by increasing its in-country presence and service offerings and through partnerships, joint ventures and acquisitions.