EOH has reported sustained operating profitability during the year ended 31 July 2022 and further deleveraging of its balance sheet.
The group has also finalised plans for its upcoming capital raise to optimise its capital structure.
Highlights for the year include:
* 92% increase in total operating profit to R282 million (R147 million in FY2021);
* 82% increase in operating profit from continuing operations of R100 million (R55 million in FY2021);
* 91% improvement in total loss per share (LPS) to 15 cents for FY2022 (166 cents for FY2021). But for an increased provision required on the Department of Water and Sanitation legacy issue, EOH would have reported a total profit per share for the year.
* R733 million of debt repaid to lenders.
* Cash generated from operations of R283 million; and
* Cash balances at 31 July 2022 of R459 million, with unutilised direct short-term facilities of R250 million
EOH intends to go to market shortly to raise up to R600 million through a R500 million rights issue and an additional R100 million BBBEE deal by the group’s strategic partner, Lebashe Investment Group. The proceeds will be used to settle the majority of the bridge facility and will leave the group with a fit for purpose capital structure and allow management and staff to focus on the Group’s exciting growth potential.
EOH’s growth engines comprise iOCO Digital which taps into the 4IR market trends, iOCO Operational Technologies which directly aligns with the rapid growth area of the OT/IT intersection and has opportunities into East and West Africa, and IOCO Infrastructure Services which creates the ideal platform for clients to outsource their IT infrastructure. All of these businesses are currently significant contributors to both revenue and profit.
EOH’s own IP companies are the foundation of exciting future growth potential as they are ready for local and geographic expansion and scaling. They will be housed together under Rocketlab Ventures to allow separate partnerships and investment as appropriate.
Stephen van Coller, EOH Group CEO comments: “Following an intense turnaround period EOH is now efficiently streamlined and profitable and for the first time has board approved investment spend for growth. I would like to extend a huge thank you to our customers and staff who have enabled us to achieve this huge milestone.”
He says that EOH continues to deliver end-to-end IT solutions to its almost 5 000 clients. With the finalisation of its capital raise, management will be able to focus on recapturing market share in South Africa and expanding EOH’s presence in East and West Africa, the Middle East and Europe.