EOH

EOH reports that its operating profit swung from a R1,3-billion loss in FY2020 to a R147-million profit in the year ended 31 July 2021.

The group has been working to close out legacy contracts and make targeted disposals over the past two years, resulting in more profit from a smaller revenue base of R7,9-billion.

Highlights of the year-end results include a gross profit margin improvement to 28% from 22% in FY2020, an operating margin increase to 2% from a negative 12% in FY2020, and an improved adjusted EBITDA margin from 0% in FY2020 to 9% .

EOH has also made significant progress made in simplifying the business by bundling complementary offerings and creating sustainable cost savings. The group’s property portfolio has been reduced from 56 to 33, and legal entities reduced to around 145 from 272 thus far.

The group signed a Common Terms Agreement with a lender group on 20 October 2021. The refinancing of existing debt provides EOH with greater certainty with respect to the overall debt outstanding and provides a more stable platform for the optimisation of the capital structure.

Stephen van Coller, CEO of EOH, comments: “I am really proud of the fact that we have rebuilt EOH in such a short time frame. Just two and a half years ago the new EOH management team initiated a massive turnaround strategy for the group.

“For the first time since I arrived our current assets exceed our current liabilities, and we are well-positioned to progress the transformed EOH in supporting our customers to solve their business challenges using our innovative technology offerings.

“Today EOH is streamlined, profitable and is winning new public and private sector contracts across multiple geographies.”

Editor@tech-talk.co.za

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