EOH has released its interim results for the period ended 31 January 2022, with each key metric demonstrating the positive impact of the turnaround strategy.
Highlights of the period include:
* EOH posted a headline earnings per share of 41 cents, a year-on-year improvement of 214%.
* The Group generated an operating profit of R167 million from continuing and discontinued operations for the six months ended 31 January 2022 compared to R76-million generated for the six months ended 31 January 2021.
* EOH also delivered significant improvement in Gross Profit margin, Operating Profit margin and EBITDA margin for HY2022.
* Cash generated from operations was positive for the period. EOH had a cash balance as at 31 January 2022 of R625-million and had undrawn overdraft facilities of R250-million available as at 12 April 2022.
* Good progress was made in the deleveraging strategy with the conclusion of the sale of Sybrin and the proceeds received on 31 March 2022.
* The Group has repaid R360-million of debt since 31 January 2022 with the majority of the proceeds coming from the Sybrin sale.
* The sale of Information Services is expected to conclude in May 2022 and the Group has also recently announced the sale of Network Solutions. R500-million is expected to flow from these transactions which will further help in deleveraging the group.
Total revenue for HY2022 was R3 511-million. Gross profit margin improved to 29,9% from 27,6% for HY2021, operating margin was up to 4,8% compared to 1,7% a year ago, and adjusted EBITDA margin improved to 9,7% from 7,9% last year.
Total headline earnings per share were 41 cents, and total earnings per share came in at 13 cents.
The EOH Board and management team are pleased to report that, despite the ongoing challenging operating environment, this six-month period marks the successful completion of EOH’s targeted turnaround strategy.
The continued acceleration of digitisation across the business landscape has seen EOH entrenching its status as one of Africa’s largest technology service providers by enabling its clients to rapidly pursue secure digital transformation and automation strategies.
Stephen van Coller, EOH CEO, comments: “We embarked on a challenging turnaround strategy for the EOH Group and it has been a tough but truly rewarding journey. Today we stand together as an agile and focused organisation proudly celebrating the fact that we are able to report positive earnings per share. This important milestone is clear evidence of our collective success.
“EOH’s full stack of technology offerings, its 5000-strong diversified client base as well as its global footprint, ensure that the Group is well positioned for the future. Our clients’ strong demand for full digital transformation and EOH’s ability to deliver on all their needs across infrastructure, software and services puts the group in an attractive position with the ability to increase its market share.
“Our collective confidence is underpinned by the business’ ever improving cashflow generation and positive momentum towards achieving the optimal sustainable capital structure. I am hugely grateful to our staff, clients, shareholders and partners for their unwavering support over the last three years and look forward to our next chapter which will be underpinned by exponential growth.”