Major South African tech company back in the black

iOCO has returned to profit, with a substantial rise in cash generation providing a welcome boost for the tech company.

Now, the company has set its sights on using this cash to fund acquisitions, share buybacks and balance sheet optimisation for future growth.

iOCO is a JSE-listed tech company focused on information and operational technology solutions for corporates across Africa, the United Kingdom, and Europe.

For years, iOCO, then EOH, was a hugely successful technology company and investor darling.

However, corruption allegations surrounding the company and several government departments surfaced in 2017, marking the start of years of decline.

The company’s CEO at the time was implicated in a bribery scandal to obtain government contracts between 2015 and 2016.

In 2020, EOH gave testimony to the Zondo Commission on its involvement in government corruption and state capture.

These scandals saw EOH’s share price plummet by 99% between 2014 and 2024. 

However, over the past few years, the company has been implementing a turnaround plan to stabilise its operations and cut costs, which is finally starting to bear fruit.

On Tuesday, 28 October, iOCO released its results for the year through July 2025, which revealed a return to profit.

The company realised a profit of R257.57 million for the year, an over 570% improvement from the R54.25 million loss it made in the 2024 financial year.

This is despite a 7.49% decrease in revenue to R5.58 billion and a 3% decline in gross profit.

Regardless, the company’s earnings per share swung from a loss of 10 cents per share to earnings of 40 cents.

The company’s co-CEOs, Rhys Summerton and Dennis Venter, explained that this is the result of the decisive steps iOCO has taken over the last year.

They said efficiency gains and sharper resource allocation drove earnings recovery, while strong cash conversion enabled the company to reduce expensive debt, which restored liquidity and diminished financial risk. 

iOCO’s cash generated from operations shot up by 232.18% over the year, reaching R566.6 million. 

Summerton and Venter explained that the company is excited about the opportunity to deploy capital for attractive outcomes for all shareholders.

The company’s capital allocation strategy going forward will focus on three priorities – share buybacks, balance sheet optimisation, and acquisitions.

iOCO said these acquisitions are expected to complement its existing portfolio, enhance its technology offerings, and unlock new revenue streams in high-growth sectors.

The company’s board did not declare a dividend for the 2025 financial year.