JSE listed business and government technology services provider, EOH – whose CEO is stepping down next year – has narrowed its headline losses per share after posting an improvement in operating profit from continuing operations for the full year to the end of July.
With a primary market in South and also active in Europe and the Middle East, EOH has seen the number of business users supported across ERP software solutions surge to 7000 in addition to a rise in active users on a mobile banking app it supports.
After raising revenues for the period under review by nearly 10% to R6 229 million, EOH has managed to generate an operating profit from continuing operations of R135 million which is 35% higher compared to the previous year.
This helped the IT services company improve its loss per share by 68% to 20 cents. Its headline loss per share was also better by 58% at 19 cents for the 2023 full year.
With a net cash balance of R204 million as of the end of July this year, EOH also has “unutilised direct short-term facilities” amounting to R218 million.
Despite the narrowing in its headline and per share losses, EOH CEO, Stephen Van Coller, will be stepping down from the company on 31 March 2024.
He leaves the company at a time geopolitical tensions are disrupting the global supply chain for IT products and software.
“Our global operating environment was characterised by continued deglobalisation, driven by increasing geopolitical tensions between the United States and China. These frictions have resulted in a limited availability of IT infrastructure hardware,” said chairman Andrew Mthembu said on Wednesday.
This had an effect on many of EOH’s large customers that have already migrated to the cloud or adopted a hybrid cloud model.
BUSINESS REPORT