EOH has reported that its revenues for the six months ended 31 January 2016 increased by 30% to R6,002-billion, with profit after tax (PAT) for the period up 36% to R464-million.
Headline earnings per share (HEPS) increased by 24% to R359 cents, and cash increased by 6% to R1,561-billion.
EOH has a wide range of outsourcing, cloud, managed services, industrial technologies and business process outsourcing (‘BPO’) solutions. Its 11 500 staff members deliver these services to over 5 000 large enterprise customers across all major industries. EOH has over 130 points of presence nationally and has a growing international footprint, with operations in over 40 countries outside of South Africa. EOH remains entrepreneurial despite its size; it has a strong brand and is expanding into new products, services and territories.
The growth came from all segments with the strongest growth coming from software sales, given EOH’s concerted drive to sell its own niche software and intellectual property. Overall services revenue is up 28%, software sales is up 87% and the sales of infrastructure products is up 7% compared with the corresponding period. Revenue from the regions outside of South Africa also grew, but EOH remains a strong South African company with sales in South Africa contributing 87% of revenue.
The rest of Africa accounts for 9% of total revenue and the rest of the world, 4% of total revenue. Revenue is generated from all industries in the private sector, with revenue from the public sector accounting for almost a quarter of EOH’s revenue. EOH remains a very diverse company with a wide range of product and service offerings and a large number of diverse enterprise customers.
During the period under review, EOH continued its strategy to consolidate and complement its existing services with strategic acquisitions. EOH focused on growing its local business offerings through several business acquisitions and by further expanding into the rest of Africa and the Middle East by acquiring a 50% stake in several medium size businesses.
During the period, two significant businesses joined the EOH family. The GCT group of companies, which focuses on utility management via smart metering solutions and analytical, forensic and investigative software solutions for the security sector, was acquired with effect from 18 November 2015 for R868-million. Mehleketo, which focuses on rail technology, was acquired with effect from 18 August 2015 for R205 million to bolster EOH’s industrial technologies offerings in the transport industry vertical. EOH acquired several smaller businesses to enhance its industrial technologies capability, augment its BPO services business and bolster its IT Technology applications and consultancy businesses.
“EOH is a Pan-African company and will continue to grow its business in the rest of Africa and in the Middle East. This growth is expected to accelerate by increasing our in-country presence, forming joint ventures and partnerships and acquiring new businesses,” says EOH’s CEO Asher Bohbot.