WELL PLACED, WELL PRICED
THAT CASH-FLUSH corporate South Africa is spending money on IT solutions to make their businesses more efficient was again evident in recent interim numbers from technology, consulting and outsourcing company EOH Holdings.
It reported headline earnings per share growth of 20% to 34,9c for the six months to January on turnover of R301,1m, which rose 27% over the period. Earnings have traditionally been higher in the second half and if that were the same for the coming six months EOH would be on a forward price: earnings of less than 10 times (price at 705c/share, as on the day of the results).
CEO Asher Bohbot sounded very bullish about prospects for the second half and promised to continue paying annual dividends at year-end.
EOH is one company that empowered its staff rather than giving away a chunk of its business to empowerment dealmakers and has 31,4% effective black ownership. Seeing the 300% rise in the value of their shares since the scheme was put in place must be good for staff morale. OPPORTUNITIES • EOH recently bought Bromide, adding infrastructure to enable it to offer an “end-to-end” solution. That should be attractive to new and existing clients who prefer dealing with fewer service providers. Outsourcing is seen as a key growth area. RISKS SA’s skills shortage is a potential risk but not unique to EOH or, indeed, the IT sector.