Finweek English Edition - - Companies & markets - BELINDA AN­DER­SON

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.


Source: I-Net Bridge

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