EOH boosts revenue, ups dividend

IT service provider EOH Holdings lifted group revenue to R3.64 billion for the year ended July 2012.

Diluted headline earnings per share improved 30.4% to 224.6 cents, from 172.3 cents in 2011.

Operating profit grew to R356.62 million, up from R233 million, while EOH declared a dividend of 70 cents, 32.6% better than 48 cents in 2011.

EOH said that all areas of its business operations have seen strong growth during the period under review, with a further shift to services in line with its strategic intent.

Services revenue increased to R2.34 billion, a 61% improvement over the previous corresponding period. Software sales lifted 28% to R614.9 million and infrastructure sales rose by 39% to 683 million.

Cash increased by 41% to R451.9 million, placing EOH in a strong financial position with substantial cash resources to ensure sustainable future growth, it said.

The company said it plans to continue growing both organically and acquisitively.

The main growth areas include infrastructure and application managed services, cloud offerings, enterprise applications, information management, business process outsourcing, security and intelligent infrastructure.

“EOH is now the strongest player in the IT arena with 4700 people, 3,500 customers, good brand, strong reputation for delivery capabilities and a very healthy financial standing. EOH has the widest offerings in our industry” said CEO Asher Bohbot.

The group heralded its training initiatives. EOH said it spent R21.1 million in the form of loans and training on enterprise development.

The group noted that it has 620 trainees participating in a yearlong graduate and school leavers’ programme and has spent R8.4 million on this programme so far and is committed to spending a further R7.8 million over the next six months.

As a South African enterprise EOH has the responsibility to actively contribute its knowledge and resources to improve Public Sector effectiveness, said Bohbot.

“The Public Sector represents a major business opportunity and will form part of our future growth. I am also happy to say that our job creation initiative is gaining momentum.”

“With the assumption that skills equal jobs, we have embarked on a learnership programme whereby 620 young people will be given the opportunity to participate in year-long, learnership and trainee programmes.”

Looking ahead, Bohbot said there were further opportunities to grow EOH’s solutions and service offerings and to strengthen the group’s industry verticals.

“We have the resources, track record, know-how, ability and capability to continue to grow aggressively.  Prospects in the rest of Africa are encouraging and EOH sees opportunities in this territory,” said Bohbot.

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EOH boosts revenue, ups dividend