EOH has once again posted a strong set of interim results, with headline earnings per share increasing by 24% to 359c.
The technology service provider saw revenue grow 30% to R6 billion, while profit after tax for the six months ended 31 January increased by 36% to R464 million.
EOH says the positive earnings are due to a combination of strong organic growth and recent acquisitions. Organic growth accounted for 54% of revenue after considering all acquisitions since 1 February 2015.
The company says all segments grew during the six months, with the strongest growth coming from software sales, which rose 87%. Overall services revenue was up 28% and the sale of infrastructure products grew 7% compared to a year ago.
EOH is the largest technology service provider in South Africa and has a growing international footprint, with operations in over 40 countries outside of South Africa. It has a wide range of outsourcing, cloud, managed services, industrial technologies and business process outsourcing solutions.
CEO Asher Bohbot says the company has exciting opportunities in South Africa and internationally.
"EOH has the people, the scale, the offerings, the financial resources, the agility and the know-how to continue to grow aggressively," he adds.
Revenue from the regions outside of SA also grew, but EOH says it remains a strong South African company with sales in SA contributing 87% of revenue. The rest of Africa accounts for 9% of total revenue and the rest of the world, 4% of total revenue. Revenue is generated from all industries in the private sector, with revenue from the public sector accounting for almost a quarter of EOH's revenue.
Earnings per share were also up 23% for the period to 358c and the company's cash increased by 6% to almost R1.6 billion. Operating profit rose 35% to R682 million, while profit increased 36% to R464 million.
Acquisition drive
During the six-month period, EOH continued its drive to "consolidate and complement its existing services with strategic acquisitions".
"EOH is a Pan-African company and will continue to grow its business in the rest of Africa and in the Middle East. This growth is expected to accelerate by increasing our in-country presence, forming joint ventures and partnerships, and acquiring new businesses." says Bohbot.
Several smaller businesses joined EOH during the period, along with two significant acquisitions.
The GCT group of companies was acquired with effect from 18 November 2015 for R868 million. The group focuses on utility management via smart metering solutions, and analytical, forensic and investigative software solutions for the security sector.
Mehleketo, which focuses on rail technology, was purchased with effect from 18 August 2015 for R205 million, to bolster EOH's industrial technology offerings in the transport industry vertical.
"EOH sees its involvement in the public sector as both a business opportunity and as a responsibility to improve public sector service delivery. EOH intends to further increase its involvement in all tiers of government - national, provincial and local."
EOH says it will continue to develop new solutions, new lines of business, enhance its industry-specific businesses and expand its service offerings into new territories.
The company sells its own niche software to users across the globe and intends to intensify these efforts with the establishment of an office in Dubai.
"EOH is executing on its plan to market and distribute these software applications internationally."
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