EOH boss pledges continuity
New CEO has assured investors successful strategy will not change
EOH’s new CEO, Zunaid Mayet, has assured investors it will be business as usual with no immediate plans to change the group’s strategy that has made it one of the best-performing technology stocks.
Mayet replaced EOH founder Asher Bohbot, who stepped down at the end of June.
The announcement of his departure, especially the short notice period, sent shock waves through the market and resulted in a significant drop in the share price. However, Bohbot will rejoin the company in 2018 as a nonexecutive director.
Mayet, who has been with EOH for eight years, has been part of the team driving the group’s successful growth.
"There are a lot of aspects that I want to continue with. We have philosophy in our organisation that has underpinned everything that we do … our mantra is [getting it] right first time," he said.
Mayet said the group would continue to create solutions that were relevant to its customers while ensuring it operated to its full potential.
This would include identifying new markets for continued growth, enhancing margins and strictly managing cash and working capital.
EOH would also continue helping clients with their digital transformation programmes, Mayet said.
"We are a growth-oriented company and will continue to bulk up our business. Our geographic expansion is equally important as we continue to explore other regions."
EOH is expected to announce two significant deals in the coming weeks.
Mergence Investment Managers portfolio manager Peter Takaendesa said EOH’s balance sheet remained strong enough to support organic and acquisitive growth.
"Their expansion to markets outside Southern Africa will remain measured but it’s still early in that journey, so too early to change that also," he said.
Takaendesa said a change in strategy that was still clearly working was a difficult ask.
"I think his role is clearly cut out, and that is executing on the current strategy which is delivering good returns for the company," he said.
While investors were not happy with the timing of Bohbot’s departure, Mayet said he knew 10 months ago, he would be his successor.