JOHANNESBURG - Technology group EOH said on Thursday trading conditions remained under pressure due to the weak macro environment in addition to the negative impact from governance failings at the company.
On July 16 EOH said a probe by ENSafrica had found evidence of serious governance failings and wrongdoing, including unsubstantiated payments, tender irregularities and other unethical business dealings.
In an update on Thursday, EOH said there had been some improvement following the release of an interim update from ENS as clients resumed business with the group, but added that the benefits would not be realised until after year end.
"This has resulted in revenue remaining under pressure which has increased further in the second half of the year, in part due to one-off hardware sales not being repeated in the second half of the year," it said.
EOH said significant progress had been made on initiatives relating to closures and the sale of non-core assets which were reasonably advanced but would continue into the new financial year.