| Mon 22 Sep 2008, 13:15 | | EOH - EOH Holdings Limited - Reviewed group results for the year ended 31 July |
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EOH
EOH
EOH - EOH Holdings Limited - Reviewed group results for the year ended 31 July
2008
EOH Holdings Limited
Incorporated in the Republic of South Africa
(Registration number: 1998/014669/06)
Share code: EOH ISIN ZAE000071072
("EOH" or "the Group")
Reviewed group results for the year ended 31 July 2008
Revenue up 35.1%
PBT up 26.4%
EPS up 22.4%
HEPS up 22.9%
DIVIDEND UP 25.0%
Reviewed Audited
2008 % change 2007
GROUP INCOME STATEMENT
R`000
Revenue 950 934 35.1% 703 673
Cost of sales (625 740) (449 521)
Gross margin 325 194 254 152
Profit before separately disclosed items 88 793 71 631
Investment income 5 142 2 746
Finance costs (1 774) (1 337)
Share of profits / (losses) of
associated companies 137 (102)
Loss on disposal / Impairment of
investment in associated company (778) (461)
Impairment of assets (40) (131)
Profit before taxation 91 480 26.4% 72 346
Taxation (29 989) (23 199)
Profit after taxation 61 491 25.1% 49 147
Attributable to:
Ordinary shareholders 60 993 49 038
Minority interests 498 109
61 491 49 147
Total shares in issue 73 659 72 554
Weighted average number of shares in
issue 63 382 62 423
Diluted number of shares 71 160 70 571
Earnings per share (cents) 96.2 22.4% 78.6
Diluted earnings per share (cents) 85.7 23.3% 69.5
Headline earnings reconciliation
Profit after taxation attributable to
ordinary shareholders 60 993 49 038
Profit on disposal of assets (457) -
Impairment of assets 40 131
Loss on disposal / Impairment of
investment in associated company 778 -
Headline earnings 61 354 49 169
Headline earnings per share (cents) 96.8 22.9% 78.8
Diluted headline earnings per share (cents) 86.2 23.7% 69.7
Reviewed Audited
GROUP BALANCE SHEET 2008 2007
ASSETS
Non-current assets
Property, plant and equipment 29 769 16 095
Intangible assets 109 527 96 460
Investment in associate companies 352 1 025
Deferred taxation assets 11 810 11 750
Current assets
Inventory 7 821 11 784
Loans receivable 5 729 2 651
Trade and other receivables 223 865 164 758
Trade receivables 217 849 157 519
Other receivables 6 016 7 239
Bank balances and cash 119 140 114 136
Total assets 508 013 418 659
EQUITIES AND LIABILITIES
Ordinary shareholders` interest 242 005 198 835
Minority interests 776 278
Total equity 242 781 199 113
Non-current liabilities
Long-term loans 2 489 6 929
Vendors for acquisition 2 600 7 711
Deferred taxation liabilities 4 666 2 720
Current liabilities
Trade and other liabilities 207 629 151 594
Deferred revenue 32 658 38 674
Taxation payable 15 190 11 918
Bank overdraft - -
Total equity and liabilities 508 013 418 659
Net asset value per share 328.5 274.1
Reviewed Audited
2008 2007
GROUP CASHFLOW STATEMENT
Net income before tax and separately disclosed items 90 982 70 884
Non cash items 11 624 12 300
Working capital changes (25 218) 836
Cash generated by operating activities 77 388 84 020
Investment income 5 142 2 746
Finance costs (1 774) (1 284)
Taxation paid (25 061) (21 844)
Dividend paid (12 651) (8 603)
Net cash inflow from operating activities 43 044 55 035
Net cash outflow from investing activities (22 019) (26 076)
Net cash (outflow) / inflow from financing
activities (16 021) 670
Net movement in cash and cash equivalents 5 004 29 629
Cash and cash equivalents at beginning of period 114 136 84 507
Cash and cash equivalents at end of period 119 140 114 136
Share Share
GROUP STATEMENT OF CHANGES IN EQUITY Capital Premium Reserves
Audited balance at 1 August 2006 604 40 791 9 532
Movement in treasury shares 5 2 668 405
The effects 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 45 840 12 354
Movement in treasury shares (16) (693) (10 711)
Adjustment to prior period profit - IFRS
leases - - -
Currency translation - - 140
Profit for the period 5 633
Dividends - - -
Issue of share capital 11 1 275
Reviewed balance at 31 July 2008 627 46 422 7 416
Retained Minority Total
Earnings Interests Equity
Audited balance at 1 August 2006 99 557 - 150 484
Movement in treasury shares - - 3 078
The effects 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 140 009 278 199 113
Movement in treasury shares - - (11 420)
Adjustment to prior period profit - IFRS
leases (805) - (805)
Currency translation (6) - 134
Profit for the period 60 993 498 67 124
Dividends (12 651) - (12 651)
Issue of share capital 1 286
Reviewed balance at 31 July 2008 187 540 776 242 781
COMMENTARY
In this, our 10th year of reporting, we would like to thank all our EOH people
for their contribution to the growth of our business. We also wish to thank our
customers, partners and the investor community for supporting us for the past
ten years.
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 businesses, 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 to clients` IT
infrastructure and applications through the rendering of full IT Outsourcing,
Applications Hosting and Managed Services as well as desktop support services
and the provision of onsite resources. EOH is also offering call centre
services for both local and overseas customers.
EOH has a presence in all major centres in South Africa and also operates
elsewhere in Africa and in the United Kingdom.
BASIS OF PREPARATION
The condensed annual financial statements have been prepared in accordance with
International Financial Reporting Standards. The accounting policies of the
group comply with IAS 34 and the 1973 Companies Act ("Act") and are based on
appropriate accounting policies, consistently applied with those in the prior
year, which are supported by reasonable and prudent judgements and estimates.
AUDIT REVIEW OPINION
The reviewed condensed annual financial results for the year ended 31 July 2008
have been reviewed by the company`s auditors, IAPA Johannesburg, Chartered
Accountants (CA) and their unqualified report is available for inspection at the
registered office of EOH.
SEGMENTAL REPORTING
EOH`s revenue is derived primarily from system integration and software
maintenance (52%), outsourcing (23%), infrastructure (15%) and consulting (10%).
The annuity revenue accounts for 43% of revenue.
FINANCIAL RESULTS
The Board is satisfied with the performance for the period under review. The
strong growth is mainly organic. Earnings remain healthy with growth continuing
to be funded internally. Cash on hand remains significant.
BUSINESS COMBINATIONS
EOH acquired the business of Multipath, an award winning outsourcing call centre
increasing EOH`s outsourcing division to over 600 staff. The results of
Multipath have been incorporated in the results with effect from 1 July 2008.
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 offerings include the provision of
infrastructure and support, hosting and networking and the provision of interim
skills. These offerings enable EOH to form long-term strategic outsourcing
partnerships with existing and new customers.
EOH is building knowledge and business acumen focusing on five industries,
namely Mining, Manufacturing, Financial Services, Telecommunications and the
Public Sector.
EOH has embarked on an intensive drive to increase its annuity business in many
existing and innovative ways including hosting and networking, software support
contracts, call centre, service desks and managed services.
A major effort will be made to increase our Public Sector market share. An
education and training business will be launched later in the year helping us to
fulfil our responsibility in the development of skills in our industry.
EOH has adopted a global mindset and has set up offices in the United Kingdom
offering some of the locally provided products and services. EOH is in a good
position to capitalise on its existing partnerships with major international
technology players, its skills base and its proven business model. EOH has also
launched `EOH Global Resourcing`, focused on the provisions of its skills across
various countries. In the coming year we see our activities in Africa
increasing.
The wide range of solutions offered to various industries in both the public and
private sector, together with its strong management team and financial strength,
positions EOH well for future growth. EOH`s growth strategy remains 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 1500 employees 40% are black, as is 50% of its board. EOH is
committed to transformation as an ongoing process, with all its people and
stakeholders involved.
DIVIDENDS
Notice is hereby given that a cash dividend of 25 cents (2007: 20 cents) per
share (`the dividend`) has been declared and is payable to shareholders recorded
in the books at the close of business on Friday, 31 October 2008. Shareholders
are advised that the last day to trade `cum` the dividend will be Friday, 24
October 2008. The shares will trade `ex` the dividend as from Monday, 27
October 2008. Payment will be made on Monday, 3 November 2008. Share
certificates may not be dematerialised or rematerialised during the period
Monday, 27 October 2008 to Friday, 31 October 2008, both days inclusive.
Asher Bohbot
Chief Executive Officer
22 September 2008
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 (Non-executive) (Dutch), Lucky Khumalo, Jane Thomson, Ken
Cullinan, Dion Ramoo, John King, Prof. Tshilidzi Marwala*, Tebogo Skwambane*
(*Non-executive)
COMPANY SECRETARY
Adri Els
Systems make it possible...
People make it happen!
SPONSOR
Merchantec (Proprietary) Limited
Date: 22/09/2008 13:15:01 Produced by the JSE SENS Department.
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