No dividend from EOH as profit plummets
A tough year included tender allegations that damaged its reputation, and restructuring costs
Technology group EOH reported a big drop in full-year profit and opted not to declare a dividend for the first time since the early 2000s. Its reputation took a big knock recently from allegations of wrongdoing relating to government tenders, though the company has since been cleared. Headline earnings per share from continuing operations, the main profit measure, dropped by nearly two thirds, to R2.78 in the year to end-July, from R7.97 in the matching period a year ago. EOH attributed the drop in profit to several factors, including the “negative news stories”, which contributed to the company getting few major contracts. It also sold the GCT group of companies, which it said had a negative effect on earnings of R400m. EOH also incurred restructuring costs as it reorganised its portfolio. The ICT business will operate under the EOH brand, while its specialised solutions for high-growth industries will operate under the newly launched Nextec brand. Stephen van Coller becomes CEO of...
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