EOH: more acquisitions on the cards
London - ICT group EOH Holdings [JSE:EOH] said on Wednesday its focus on broad product and services offerings has aided its growth. Looking to the year ahead, EOH said more growth is to expected and it will be pursuing more public sector business.
EOH reported results for the year to end-July 2010 on Wednesday. These showed group revenue up 38% to R1.8m, with profit before tax up 36.6% o R157.2m. Headline earnings per share are up 28.3% to 156.4 cents and the group announced a 20% increase in dividend to 36c.
Said CEO Asher Bohbot: "During the year we followed our core strategy, targeting areas where we would derive more annuity and repeat revenue. Although the ICT sector is in a state of transition, we continue to be a growth industry."
Bohbot told Fin24.com that acquisitions would continue to feature as EOH pursues growth.
"Traditionally we've grown through a combination of organic and acquisitive growth, and this year there will likely be an even split between acquisitions and growing new business," he said.
Bohbot said that EOH acquires businesses in areas the group wants to pursue. After many acquisitions with a trend of acquired company staff remaining at EOH, he said EOH has learnt how to make acquisitions work best.
Public sector work a responsibility
In terms of operations, EOH will continue to focus on the managed services arena with subsets of offerings for industry verticals, according to Bohbot.
"This is very important to us and is our largest area of growth," he said.
"Business process automation, information management and the whole aspect of storage are examples of growth business."
"Selling, implementing and supporting many applications for our customers is also a big business," he said.
Bohbot also wants to pursue more public sector business and feels strongly about the impact the company could make in that space.
"It is a responsibility to be involved in the public sector," he said.
"Government is struggling to deliver and we can do a lot for them and the citizens of this country. There are really lots of opportunities there. We want to be there and they badly need us," said Bohbot.