EOH turns over a new leaf
EOH said it is making significant strides in its turnaround – with more progress to come – and plans to rebrand the company with a new name, iOCO.
EOH said today that it has delivered a significantly improved financial position for the year through July 2024.
The company said it has formed a board committee to “oversee significant value creation for the group to enhance its market position”. This board committee includes business turnaround specialists, the CEO, and the CFO.
EOH said it has also improved its capital structure, resolved many of its legacy issues, significantly streamlined its corporate office and administrative functions, and made additional progress in its growth strategy.
“These achievements mark key milestones in EOH’s journey towards financial stability,” the company said.
“Asset sales have assisted in a marked debt reduction, and now the focus moves to operational efficiencies and value extraction from the restructure,” EOH Interim Group CEO Marius de la Rey said.
“This has unlocked more efficient day-to-day operations with promising growth potential. These are significant steps toward improving investor and other stakeholder confidence, giving us a strong competitive position in the market and setting the stage for future growth and innovation.”
EOH also provided specifics on its financial performance, which included a dip in revenue but steady profit margins and successful cost-cutting measures. The company shared the following details:
- Group revenue down 3.1% to R6.0 billion
- Strong revenue growth from International (+27%) and Infrastructure services businesses (+5%) with Digital revenue generation robust
- Decline in revenue in Connected Industrial Ecosystems (-15%) and Digital business solutions (-12%)
- Gross profit margins remained steady at 27.3%.
- Adjusted EBITDA declined marginally to R307 million from R312 million the year prior, adjusted for share-based payment expense
- Operating profit of R112 million, down 17%, including once-off restructuring costs incurred
- Net finance costs reduced by 28% to R118 million
The company’s loss per share also narrowed by 23% to 10 cents, compared to 13 cents the year prior. Its headline loss per share improved by 99% to 0.21 cents.

EOH said a significant achievement during this period was its restructuring into three divisions.
“This reorganisation aimed to enhance the group’s market share by fostering greater internal cohesion and optimisation of client solutions,” the company said.
EOH’s operating companies – iOCO South Africa and iOCO International – are focused on differentiating themselves in the market.
iOCO South Africa now provides technology services to 38 of the top 40 JSE-listed South African companies.
At the same time, iOCO International offers digital enablement services in the Middle East and Europe.
Easy HQ, now referred to as Outsourced Knowledge Services (OKS), offers People Solutions and HR Platforms powered by technology platforms to various businesses.
EOH CFO Ashona Kooblall emphasised the success of a stringent expense management programme.
“By rationalising inefficient cost structures, we have also reduced complexity, optimised tax structures and established a lean, consolidated business model,” she said.
“While restructuring costs impacted FY24 performance, normalising these results reveals year-on-year growth in both operating profit and EBITDA.”
“We anticipate seeing the benefits of these actions in FY2025.”
She further explained that, with a determined value creation mindset and strategy, driving growth and profitability across a diverse range of businesses, the outlook for FY25 is promising.
In addition, the company said it has successfully addressed its last remaining significant legacy issues over the past year – the Mehleketo and SARS PAYE disputes.
“This marks another important milestone. With these matters resolved, the group is now able to concentrate on implementing its Growth-Efficiency-Talent strategy more effectively,” it said.
“Legacy payments are nearing their conclusion, with final payments expected to wrap up in FY2025.”
EOH added that it intends to recommend that shareholders approve a proposal to change the company’s name to iOCO Limited at its upcoming AGM.
“EOH believes that the proposed name change aligns with the company’s strategic objectives and branding initiatives,” it said.
Looking ahead, EOH anticipates a resurgence in business and investor confidence under the new political landscape.
“We have completed significant strategic realignment and are now poised to enter a new growth phase,” De la Rey said.
“We will continue our focus on becoming a leading customer-centric organisation and establishing ourselves as a best-in-class technology partner throughout the EMEA region.”
“We are excited about the opportunities that lie ahead and are committed to delivering exceptional value to our customers and stakeholders.”
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