How ‘normalisation’ is bringing big contracts to EOH
The technology group says 'fake news stories' adversely affected its business in the first half of its 2018 financial year
Technology group EOH, which has been grappling with reputational damage since concerns were raised about an acquisition it made in 2015, says its business is finally “normalising”. “Over the last three months, the EOH group has seen a marked increase in the number of large contracts awarded to it, indicating the normalisation of business activities,” the firm said in a trading statement. Shares in the group closed 6.1% up at R36.55 on Thursday after it said earnings for the year to July would decline less than some analysts had expected. Normalised headline earnings per share from continuing operations, a metric that strips out nonrecurring items, would probably fall between 30% and 45%. Revenue would increase by 8% to about R16.3bn. Cratos Capital portfolio manager Ron Klipin said while more details on the group’s financial performance were needed, “it looks like they’re slowly moving in the right direction – but I would still be a little cautious”. It was too soon to call it “the ...