EOH defies weak economy with 34% profit hike
TECHNOLOGY group EOH has recorded another strong full-year performance, with the company’s net profit soaring to almost R1bn, despite the weak economic environment. Revenue for the year through to July 31 rose 31% to R12.7bn and net profit grew 34% to R930m, lifted by acquisitions and organic growth. But notwithstanding the effect of the 2016 acquisitions, EOH still grew its revenue from existing business by 18%, compared with an estimated 6% increase in the information technology industry’s spending in 2015 and 2016, said Mergence Investment Managers’ portfolio manager Peter Takaendesa. "A very interesting observation is that the reported 31% growth in group revenue marks the 10th consecutive year of growing revenue by 30% or more," he said. EOH provides a wide range of technology products and services including software, consulting and outsourcing. It is active in more than 50 countries outside SA.
Headline earnings per share rose 25% to 719c. Cash increased by 17% to R1.9bn...
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