EOH lifts earnings by 40%

Listed IT services firm EOH Holdings on Wednesday (11 September) reported a 40% rise in revenue for the year ended July 2013, to R5.09 billion, driven by a combination of both organic growth and recent acquisitions.

Operating profit climbed to R495.72 million, from R356.62 million before, while diluted headline earnings per share of 305,6 cents, was 36% higher than 224,6 cents in 2012.

The group declared a gross dividend of 95 cents per ordinary share, up 36% from 70 cents before.

EOH said its primary focus was to consolidate and complement its existing service offerings in its consulting, managed services, human capital solutions and industrial technology businesses during the year.

Accordingly, it made several acquisitions in these areas with the total consideration paid for these acquisitions amounting to R358 million.

All areas of EOH’s business operations saw growth during the year with the revenue from services being the most significant generator. Services revenue increased by 55%, software revenue by 12% and infrastructure revenue by 13%.

The gross profit margin is 40% and the operating margin was at 9.7%.

Looking ahead, EOH said it will continue to expand its solutions and service offerings and strengthen its knowledge-based industry services. “This will be achieved through organic growth complemented by acquisitions,” it said.

EOH expressed its desire to expand the business it does in the public sector.

“During the year, EOH has made significant strides into Africa with plans to increase its presence on the continent. EOH now has the structures and processes in place to be far more strategic and proactive in its approach to doing business in Africa.”

The group pointed out that its offerings in the outsourcing, managed services and cloud arenas have grown significantly having secured major contracts in the past year.

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EOH lifts earnings by 40%