JSE-listed tech company staging a comeback

After returning to profitability in its 2025 financial year, JSE-listed tech company iOCO is now set to stay the course in 2026.

iOCO, formerly known as EOH, has been implementing a three-step turnaround strategy to improve its operations and financial performance, including cutting costs, decentralising its operating model, and enforcing disciplined capital allocation.

This strategy paid off in the 2025 financial year, with the company returning to profitability for the first time in years.

EOH was linked to corruption allegations during South Africa’s era of State Capture, which resulted in significant damage to the company.

It has been looking to turn its operations around ever since, with its strategy of cutting costs and reducing debt now finally bearing fruit.

In a trading update released on Tuesday, 3 March, iOCO informed shareholders that this positive trajectory is set to continue.

The trading update outlined iOCO’s expected earnings growth for the six months ended 31 January 2026, marking the first half of its 2026 financial year.

iOCO expects its earnings per share and headline earnings per share to be between 27 cents and 30 cents. This represents an increase of between 42% to 58%.

“These results reflect the early benefits of implementing our three-step strategy of cost rationalisation, a decentralised operating model and disciplined capital allocation,” the company said.

“These actions are positioning iOCO for sustainable long-term growth and further enhancing shareholder value.”

In addition, the company announced that it repurchased R12.35 million worth of shares between 30 January to 27 February.

This continued a share buyback initiated in August 2025, with iOCO now having repurchased 9,375,081 shares, at a total cash value of R38.82 million.

“The board is satisfied that the repurchase is an appropriate capital allocation decision at this stage of the group’s turnaround, supported by the company’s solid liquidity position,” the company said. 

“The repurchase enables the group to optimise its capital structure and deliver enhanced value to shareholders, while ensuring continued capacity to invest in operational and strategic initiatives.”

With this repurchase completed, iOCO assured shareholders that the following will take place over the next year –

• The company will be able, in the ordinary course of business, to pay its debts
• The company’s assets will be more than its liabilities
• The company’s share capital and reserves will be adequate for ordinary business purposes
• The company’s working capital will be adequate for ordinary business purposes
• The company will have passed the solvency and liquidity test

iOCO’s financial results announcement for the six months ended 31 January 2026 will be released on or about 18 March 2026.