EOH increased group revenue increased by 45,5% to R2 389,2-million (2012: R1 642,3-million) during the six months ended 31 January 2013.
The group’s profit after tax increased by 53,5% to R163,5-million (2012: R106,5-million), while headline earnings per share (HEPS) up 35,2% to 171,5 cents (2012: 126,9 cents) and cash increased by 37% to R532,5-million (2012: R388,8-million).
The company plans to continue growing both organically and acquisitively. Growth areas include infrastructure and application managed services, cloud offerings, enterprise applications, information management, business process outsourcing, security and industrial technology.
“EOH is now one of the strongest players in the IT arena with 6000 people, 3500 customers, good brand, strong reputation for delivery capabilities and a very healthy financial standing. EOH has the widest offerings in our industry,” says CEO Asher Bohbot.
All areas of EOH’s business operations have seen strong growth during the period under review, with a further shift to services in line with EOH’s strategic intent. Services revenue has increased to R1 660,2-million, a 61,7% increase over the previous corresponding period. Software sales have increased by 32,7% to R350,6-million. Infrastructure sales have increased by 7,7% to R378,3-million. Overall margin is 9,9%.
EOH’s success is largely attributable to its unfailing business philosophy that is centred on people, says Bohbot.
“We have always strived to attract, develop and retain the best people in the industry with the purpose of creating life-long, mutually beneficial partnerships with our customers and partners. Doing things right first time epitomises what we do at EOH.”
EOH is certified as a Large Enterprise Level 2 Contributor with BEE Procurement Recognition of 156% as a value adding vendor. EOH’s current black shareholding is 34,6%.
Fifty-nine percent of EOH’s staff and 55% of its board members are black. EOH’s Corporate Social Investment initiatives are focused around education and wellness. One community involvement project is the Maths Centre Programme – the primary objective of which is to equip teachers with skills to develop learner competency in maths.
EOH have also given its support to The Child and Youth Development Programme of Afrika Tikkun. This programme provides support to youth during their school career and assists them in finding employment in the workplace.
EOH has also continued supporting their Enterprise Development initiatives aimed at developing black owned ICT companies through financial and non-financial support which includes the transfer of business skills.
As a South African enterprise EOH has the responsibility to actively contribute its knowledge and resources to improve Public Sector service delivery, says Bohbot.
“The Public Sector represents a major business opportunity and will form part of our future growth.”
EOH continues with its Youth Job Creation Initiative and has taken it to another level and EOH is now running workshops with major customers and vendors with the view to encouraging other businesses to follow EOH’s example of employing 620 young people to participate in year-long learnership and internship programmes. Another intake of young trainees will join EOH later this year.
‘’We hope to mobilise business to take advantage of the government incentive programmes, invest more in South Africa and its people and to discourage the off-shoring of activities to overseas countries at the expense of jobs for South Africa’s,” says Bohbot.
“We have the people, financial resources agility, track record, and know-how to continue to grow aggressively in all areas of our business and to expand into new services and territories. Prospects in the rest of Africa are encouraging and we see future growth in identified countries,” he concludes.