EOH says it expects to increase revenue by 8% to approximately R16.3 billion for the year ended July 2018.<\/p>\n
Normalised EBITDA from continuing operations is expected to be between R1.71 billion and R1.94 billion, reflecting a decrease of between 15% and 25% compared to R2.28 billion for the previous corresponding period.<\/p>\n
Headline Earnings per share is expected to be between 250 cents and 374 cents reflecting a decrease of between 55% and 70% compared to 832 cents for the previous corresponding
\nperiod.<\/p>\n
Normalised Headline Earnings per share from continuing operations is expected to be between 438 cents and 558 cents, reflecting a decrease of between 30% and 45% compared to 797 cents for the previous corresponding period.<\/p>\n
“Although challenging, the past year has re-focussed, energised and strengthened the business and made it more resilient,” EOH said, adding that a new strategy, structure and operating model will enable the business to return to past performance.<\/p>\n
The year under review was a year of two different halves, the group said. The disposal of the GCT group of companies in the first six months had a negative impact on earnings of R399 million (non-cash, once-off deduction).<\/p>\n
“Fake news stories adversely impacted the business necessitating intense stakeholder engagement,” it said.<\/p>\n
“In view of EOH\u2019s specific market challenges during the period, the Group adopted a deliberate customer retention strategy whilst sacrificing some margin.<\/p>\n
“As a result of the above, fewer major contracts were awarded to the EOH Group adversely impacting the business in the second half of the 2018 financial year,” it said.<\/p>\n
During the second six months, EOH Group was reorganised into two independent focussed businesses, EOH and NEXTEC, creating two growth platforms, each with its own identity, brand and strategy.<\/p>\n
The increased focus on working capital management resulted in a reduction of accounts receivable and an improvement in cash compared to the 2018 half-year interim results, it said.<\/p>\n
“Over the last three months, the EOH Group has seen a marked increase in the number of large contracts awarded to it indicating the normalisation of business activities,” EOH said.<\/p>\n