{"id":482957,"date":"2021-04-14T09:15:38","date_gmt":"2021-04-14T07:15:38","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=482957"},"modified":"2021-04-14T09:15:38","modified_gmt":"2021-04-14T07:15:38","slug":"eoh-interim-financials-point-to-progress","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/trending\/482957\/eoh-interim-financials-point-to-progress\/","title":{"rendered":"EOH interim financials point to progress"},"content":{"rendered":"<p><span class=\"aCOpRe\">Technology services company <\/span>EOH on Wednesday (14 April) published its unaudited results for the six months ended January 2021, showing an operating profit of R59 million, up from a prior R915 million loss.<\/p>\n<p>Revenue, however, declined 29% to R4.376 billion from R6.194 billion before. EOH chief executive officer, Stephen van Coller said that the decline is a result of the strategic disposal of non-core assets and exit of under-performing businesses.<\/p>\n<p>He said after this disposal EOH is a more sustainable business delivering better quality earnings. \u201cWe have seen a significant reduction in one-off costs and are confident that our legacy issues are now under control,\u201d said Van Coller.<\/p>\n<p>While the local and global economy remains constrained &#8211; with a negative impact on EOH\u2019s clients &#8211; the chief executive pointed to some green shoots.<\/p>\n<p>\u201cWe have seen increased cloud uptake and spend on automation and application development in line with global trends,\u201d he said.<\/p>\n<p>&nbsp;<\/p>\n<p><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2021\/04\/EOH.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-482997\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2021\/04\/EOH.png\" alt=\"\" width=\"774\" height=\"203\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2021\/04\/EOH.png 774w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2021\/04\/EOH-300x79.png 300w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2021\/04\/EOH-768x201.png 768w\" sizes=\"auto, (max-width: 774px) 100vw, 774px\" \/><\/a><\/p>\n<p>Highlights of EOH\u2019s results:<\/p>\n<ul>\n<li>Revenue of R4.376 billion;<\/li>\n<li>Improved gross profit margin to 27.6% from 24.2% in the prior period;<\/li>\n<li>Total core normalised EBITDA for the period was R363 million;<\/li>\n<li>A normalised EBITDA margin improvement to 8.3% from 7.8% in the prior period;<\/li>\n<li>Operating profit of R59 million generated compared to R915 million loss in the prior period;<\/li>\n<li>Total headline loss per share improved by 83% with losses narrowing from 350 cents per share to 60 cents per share;<\/li>\n<li>Cash balance of R440 million as at 31 March 2021.<\/li>\n<\/ul>\n<p>Van Coller said their focus in the coming months will be on \u201cdeleveraging, enhancing margins, and remaining antifragile\u201d.<\/p>\n<p>EOH is trying to move on from legacy contracting issues after an investigation at the JSE-listed IT services group revealed instances of corruption and wrongdoing in the awarding or execution of contracts.<\/p>\n<p>The investigation found R1.2 billion worth of dodgy transactions at the company, mostly involving transactions within the public sector contracts.<\/p>\n<p><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2021\/04\/EOH-1.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-483005\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2021\/04\/EOH-1.png\" alt=\"\" width=\"758\" height=\"453\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2021\/04\/EOH-1.png 758w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2021\/04\/EOH-1-300x179.png 300w\" sizes=\"auto, (max-width: 758px) 100vw, 758px\" \/><\/a><\/p>\n<hr \/>\n<p><strong>Read: <a href=\"https:\/\/businesstech.co.za\/news\/enterprise\/464226\/eoh-boss-talks-up-turnaround-progress\/\" target=\"_blank\" rel=\"noopener\">EOH boss talks up turnaround progress<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Technology services company EOH on Wednesday (14 April) published its unaudited results for the six months ended January 2021 showing an operating profit of R59 million, up from a prior R915 million loss.<\/p>\n","protected":false},"author":10,"featured_media":237713,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[1957,26],"class_list":["post-482957","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-trending","tag-eoh","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/482957","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=482957"}],"version-history":[{"count":4,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/482957\/revisions"}],"predecessor-version":[{"id":483019,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/482957\/revisions\/483019"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/237713"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=482957"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=482957"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=482957"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}