EOH Holdings reported group revenue of R3,1-billion for the six months ended 31 January 2024, lower than R3,2-billion for the six months ended 31 January 2023.
Group operating profit was R9-million for the period, compared to R143-million in the first half of 2023.
The group posted a total loss per share of 15 cents, a total headline loss per share of 11 cents for HY2024, and adjusted EBITDA of R97-million (compared to R171-million for the same period last year.
Total cash generated from operations was R201-million, as against R5-million for the first half of 2023.
EOH experienced a challenging second half of FY2023, a trend that continued through the first three months of HY2024.
The core Digital Enablement business, including International, has seen good revenue growth. However, this has been
offset by reductions in other areas, particularly in the Operational Technologies division which has been negatively impacted by delays in closing Public Sector contracts and contracting delays with large mining customers.
With talent retention an issue in South Africa, EOH took the decision to retain highly skilled staff that were not fully productive, despite the impact on gross margins and overall profitability.
Operating costs continue to be a core focus, and EOH is on track to eliminate at least R50-million from the FY2023 cost base, on an annualised basis, as part of the efficiency strategy.
EOH recently announced the agreement with SARS on the last remaining legacy issue that has been holding the company back from finalising the restructure and getting back to business-as-usual. The closure of this matter will allow for further corporate structure rationalisation and normalisation of the tax rate