EOH has reported a 40% increase in group revenue, to R5,086-billion, for the year ended 31 July 2013.
Profit after tax increased by 49% to R331-million, while headline earnings per share (HEPS) was up 34% to 339 cents.
“EOH is now one of the strongest players in the IT arena with 6 000 people, 2 500 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.
The group’s growth is attributable to a combination of both organic growth and recent acquisitions. Cash has increased by 45% to R653 million, placing EOH in a strong financial position with substantial cash resources to ensure sustainable future growth.
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 R3,627-billion, a 55% increase over the previous corresponding period. Software sales have increased by 12% to R687-million. Infrastructure sales have increased by 13% to R772-million. Overall margin is 9,7%.
EOH’s success is largely attributable to its unfailing business philosophy that is centred around people, says CEO Asher 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 35%. 53% of EOH’s staff and 60% of its board members are black.
EOH’s Corporate Social Investment initiatives are focused around education and wellness. One of our community involvement projects is the Maths Centre Programme which has its primary object to equip teachers with skills to develop learner competency in maths.
EOH has 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. We have also continued supporting our 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 in its second year running and has taken it to another level. EOH is running workshops with our major customers and vendors with the view to encouraging other businesses to follow EOH’s example of employing 620 young people to participate in our year-long learnership and internship programmes. Another intake of young trainees will join EOH in October 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, the financial resources, the agility, the 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 says.