| Wed 19 Sep 2007, 8:00 | | EOH - EOH - Audited Results For Year Ended 31 July |
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EOH
EOH
EOH - EOH - Audited Results For Year Ended 31 July 2007 and dividend
declaration
EOH Holdings Limited
Incorporated in the Republic of South Africa
(Company registration no: 1998/014669/06)
Share code: EOH & ISIN: ZAE000071072
("EOH" or "the Group")
Audited results for year ended 31 July 2007
- Revenue up 40%
- PBT up 30%
- HEPS up 24%
- Dividend per share up 43%
- Cash up 35%
Group income statement
Audited % Audited
R`000 2007 change 2006
Revenue 703 673 40 503 292
Operating profit 71 631 30 55 207
Interest income 2 746 1 956
Finance costs (1 337) (1 448)
Share of (losses)/profits of
associate companies (102) 123
Impairment of loan to associated
company (461) -
Impairment of assets (131) -
Profit before tax 72 346 30 55 838
Taxation (23 199) (18 381)
Profit after tax 49 147 31 37 457
Attributable to:
Ordinary shareholders 49 038 37 457
Outside shareholders 109 -
49 147 37 457
Total shares in issue 72 554 70 538
Weighted average shares in issue 62 423 59 118
Total diluted shares in issue 70 571 68 686
Earnings per share (cents) 78,6 24 63,4
Diluted earnings per share (cents) 69,5 54,5
Headline earnings reconciliation
Profit after tax attributable to
ordinary shareholders 49 038 37 457
Impairment of assets 131 -
Headline earnings 49 169 37 457
Headline earnings per share (cents) 78,8 24 63,4
Diluted headline earnings per share
(cents) 69,7 54,5
Group cash flow statement
Audited Audited
R`000 2007 2006
Net income before tax 72 346 55 838
Non-cash items 10 838 10 589
Working capital changes 80 (12 875)
Cash generated by operations 83 264 53 552
Taxation paid (21 844) (20 467)
Dividend paid (8 603) (6 622)
Net finance income 1 462 508
Cash from operating activities 54 279 26 971
Cash effect of investing activities (26 076) (7 431)
Cash effect of financing activities 1 425 (3 390)
Net cash change for period 29 628 16 150
Cash at beginning of period 84 507 68 357
Cash at end of period 114 135 84 507
Group balance sheet
Audited Audited
R`000 2007 2006
ASSETS
Non-current assets
Property, plant and equipment 16 093 12 359
Intangible assets 96 460 78 700
Investment in associate companies 1 025 848
Deferred taxation assets 9 426 6 589
Current assets
Inventories 11 784 2 460
Loans receivable 2 652 132
Trade and other receivables 164 759 124 384
Trade receivables 157 519 119 125
Other receivables 7 240 5 259
Bank balances and cash 114 135 84 507
Total assets 416 334 309 979
EQUITY AND LIABILITIES
Ordinary shareholders` interest 198 836 150 485
Outside shareholders` interest 278 -
Total equity 199 114 150 485
Non-current liabilities
Long-term liabilities 7 105 1 909
Current liabilities
Trade and other payables 150 067 97 739
Short-term liabilities 9 062 15 621
Deferred revenue 38 673 36 102
Current taxation liabilities 12 313 8 123
Total equity and liabilities 416 334 309 979
Net asset value per share (cents) 274 213
Group statement of changes in equity
Share Share
R`000 capital premium Reserves
Audited balance at 1 August 2005 501 10 797 4 709
Movement in treasury shares (4) (2 671) 269
Effect of consolidating the
EOH Share Trust 6 180 (53)
Currency translation differences - - (10)
Profit for the period - - 4 617
Dividends - - -
Issue of share capital 193 55 345 -
Effect of consolidating the
EOH Mthombo Share Trust (92) (22 859) -
Audited balance at 31 July 2006 604 40 792 9 532
Movement in treasury shares 5 2 668 405
Effect of consolidating the
EOH Share Trust 3 331 (1 160)
Acquisition of subsidiary company - - -
Profit for the period - - 3 577
Dividends - - -
Issue of share capital 20 2 050 -
Audited balance at 31 July 2007 632 45 841 12 354
Outside
share-
Retained holders` Total
R`000 earnings interest equity
Audited balance at 1 August 2005 68 752 - 84 759
Movement in treasury shares - - (2 406)
Effect of consolidating the
EOH Share Trust - - 133
Currency translation differences - - (10)
Profit for the period 37 457 - 42 074
Dividends (6 652) - (6 652)
Issue of share capital - - 55 538
Effect of consolidating the
EOH Mthombo Share Trust - - (22 951)
Audited balance at 31 July 2006 99 557 - 150 485
Movement in treasury shares - - 3 078
Effect of consolidating the
EOH Share Trust - - (826)
Acquisition of subsidiary company - 169 169
Profit for the period 49 038 109 52 724
Dividends (8 586) - (8 586)
Issue of share capital - - 2 070
Audited balance at 31 July 2007 140 009 278 199 114
Commentary
VISION
The EOH vision is to be the best technology and business solutions
company to work for, partner with and invest in.
GROUP PROFILE
EOH is a technology and business solutions provider creating lifelong
partnerships by developing business and IT strategies, supplying and
implementing solutions and managing enterprise-wide business systems and
processes for medium to large clients.
EOH operates as a fully integrated business in the following three broad
areas of business:
Technology - through a number of subsidiary companies, EOH is able to
sell, implement and support a range of world-class business applications
including: ERP, CRM, Business Intelligence, Advanced Planning and
Scheduling, e-Commerce, Manufacturing Execution Systems (MES) and
Technology Performance Management Solutions.
Consulting - operates in the private and public sector offering services
ranging from strategic process consulting, project services, change
management and education. This cluster also develops IT strategy, advises
on enterprise architecture, IT governance and risk management.
Outsourcing - EOH offers comprehensive maintenance and support of
clients` IT infrastructure and applications through the rendering of full
IT Outsourcing, Application Hosting and Managed Services as well as
desktop support services and the provision of onsite resources.
EOH has a presence in all major centres in South Africa, also operating
elsewhere in Africa.
BASIS OF PREPARATION
These results are prepared in accordance with International Financial
Reporting Standards and the South African Companies Act, 1973.
The year`s results include the business operations and investments of
Bromide Technologies (`Bromide`) from 1 January 2007. In terms of IFRS3
(Business Combinations) the initial accounting for this acquisition has
only been determined provisionally.
The Group`s auditors, IAPA Johannesburg, Chartered Accountants (SA), have
audited the financial information for the year ending 31 July 2007 and
their unqualified audit report is available for inspection at the
registered office of EOH.
FINANCIAL RESULTS
The board is satisfied with the performance for the year under review.
The strong revenue growth of the Group this year is a result of both the
strong organic growth within the core businesses complemented by the
growth attributable to the Bromide acquisition. Earnings remain healthy
with growth continuing to be funded internally, whilst the cash reserves
on hand grew significantly.
FUTURE PLANS
EOH is a major player in the technology, consulting and outsourcing space
and these offerings are enhanced by its ability to deliver effective `end
to end` solutions to its clients. These will now also include
infrastructure provision and support, hosting and networking and the
provision of interim skills to EOH customers.
The wide range of solutions offered to various industries in both the
public and private sector, in conjunction with a well proven business
model as well as strong management and financial strength, bode well for
its future growth. EOH sees the strong market conditions, specifically
those in the technology field, continuing with EOH well positioned to
capitalise on these.
EOH has embarked on adding another dimension to its offering, that of
industry expertise. In order to enhance our value add to our clients, EOH
will be building knowledge and businesses focussing on five industries,
namely Mining, Manufacturing, Financial Services, Telecommunications and
the Public Sector.
EOH`s growth strategy will remain focused on organic growth, supplemented
by strategic acquisitions.
TRANSFORMATION
EOH has a 33,3% effective black ownership, involving all of our black
employees. Of the Group`s 1 200 employees 40% are black, as is 50% of our
board. We are committed to transformation as an ongoing process, to which
all our people and stakeholders are involved.
DIVIDENDS
Notice is hereby given that a cash dividend of 20,0 cents per share (`the
dividend`) has been declared and is payable to shareholders recorded in
the books at the close of business on Friday, 26 October 2007.
Shareholders are advised that the last day to trade "cum" the dividend
will be Friday, 19 October 2007. The shares will trade "ex" the dividend
as from Monday, 22 October 2007. Payment will be made on Monday, 29
October 2007. Share certificates may not be dematerialised or
rematerialised during the period Monday, 22 October 2007 to Friday, 26
October 2007, both days inclusive.
Asher Bohbot
Chief Executive Officer
19 September 2007
Sponsor: Merchantec Sponsors
REGISTERED OFFICE
Block D, Gillooly`s View, 1 Osborne Lane, Bedfordview, 2008
Tel: (011) 607 8100, Fax: (011) 616 9929
website: www.eoh.co.za, e-mail: info@eoh.co.za
DIRECTORS
Dr Mathews Phosa (Non-executive Chairman),
Asher Bohbot (Chief Executive Officer), Rob Sporen (Dutch),
Lucky Khumalo, Jane Thomson, Ken Cullinan,
Dion Ramoo, Nkosinathi Khumalo, Steven Evans,
Prof. Tshilidzi Marwala (Non-executive)
COMPANY SECRETARY
Adri Els
For further information, please contact Steven Evans on
the above numbers
Systems make it possible...
People make it happen!
Date: 19/09/2007 08:00:05 Produced by the JSE SENS Department.
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