Johannesburg - EOH almost broke through the R1 billion mark on its bottom line thanks to its continuing strategy of acquisitive and organic growth.
The listed tech services provider says revenue gained 31 percent to R12.8 billion, while operating profit moved 37 percent higher to R1.4 billion. EOH has a history of growing its top line at more than 30 percent through a combination of acquisitive and organic growth.
In the year to July, organic growth accounted for 59 percent of its increase in its top line. It says all its divisions contributed to its growth.
Revenue from services totals R9.8 billion and accounts for 77 percent of EOH's total revenue.
In a statement released to shareholders on Wednesday, the company said profit gained 34 percent to R930 million, while headline earnings per share - a key measure of profitability - increased 25 percent to 719c.
During the year, EOH continued its strategy to consolidate and complement its existing services with strategic acquisitions. It focused on growing its local business offerings and expanding into the rest of Africa and the Middle East.
It says its international expansion continues through a 'partnering and joint venture' model through acquiring an initial interest of 50% in the companies that it acquires. This de-risks EOH's entry into these regions, while it establishes a footprint and gains a better understanding of doing business in these regions.
In 2016, the company bought the GCT group of companies, which focuses on utility management through smart metering solutions and analytical, forensic and investigative software solutions for the security sector and Mehleketo, which focuses on rail technology.
EOH also acquired several smaller strategic businesses to enhance its industrial technologies capability, augment its business process outsourcing businesses and bolster its IT services and infrastructure businesses.
EOH, listed since 1998, has 11 500 staff members across its operations in 50 countries outside of SA. South Africa accounts for 86 percent of total revenue.
Revenue from sub-Saharan Africa, North Africa, and the Middle East accounts for about 10 percent of total revenue with the remaining derived from other countries.
EOH declared a dividend of 185c.
IOL