| Tue 10 Apr 2001, 0:00 | | Eoh - Interim Results For The Six Months To 31 Jan |
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ENTERPRISE OUTSOURCING HOLDINGS LIMITED
("EOH")
INTERIM RESULTS FOR THE SIX MONTHS TO 31 JANUARY 2001
Systems make it possible ... people make it happen!
INTERIM REPORT FOR THE SIX MONTHS TO 31 JANUARY 2001
* Revenue up 42% * Headline eps up 26% * Profit up 20%
Group Income Statements
Unaudited Unaudited
6 months to 6 months to
31 January 31 January Change
2001 2000
(R'000) (R'000) (%)
Revenue 40 348 28 506 42
Profit before goodwill
and interest 6 420 5 423 18
Goodwill amortised (246) -
Net interest received 329 506
Profit from operations 6 503 5 929
Taxation 1 506 1 782
Net profit for period 4 997 4 147 20
Number of shares in issue ('000) 50 278 50 051
Weighted average number
of shares in issue ('000) 50 435 50 129
Earnings per ordinary share (cents) 9,91 8,27 20
Headline earnings per
ordinary share (cents) 10,39 8,27 26
Group Balance Sheets
Unaudited Unaudited
31 January 31 January
2001 2000
(R'000) (R'000)
ASSETS
Non-current assets
Fixed assets 2 012 1 299
Investments - 15
Intangibles 16 684 12 309
Current assets
Trade receivables 15 675 10 187
Other receivables 2 127 2 498
Inventory 151 123
Cash and cash equivalents 24 714 11 161
Total assets 61 363 37 592
Equity and Liabilities
Ordinary shareholders' interest 25 199 20 303
Non-current liabilities
Vendors for acquisition 4 609 9 969
Interest bearing borrowings - 86
Deferred taxation (777) 50
Current liabilities
Trade and other liabilities 12 408 5 115
Deferred revenue 14 539 -
Bank overdraft 150 284
Taxation 5 235 1 785
Total equity and liabilities 61 363 37 592
Group Cash Flow Statements
Unaudited Audited
6 months to 12 months to
31 January 31 July
2001 2000
(R'000) (R'000)
Cash inflow from operating activities 8 729 11 303
Cash outflow to investing activities (2 795) (9 061)
Cash (outflow)/inflow from
financing activities (40) 3 290
Net increase in cash and
cash equivalents 5 894 5 532
Cash and cash equivalents at
beginning of period 18 670 13 138
Cash and cash equivalents at
end of period 24 564 18 670
Statements of change in
ordinary shareholders' interest
Unaudited Unaudited
6 months to 12 months to
31 January 31 January
2001 2000
(R'000) (R'000)
Share capital and premium 10 911 10 263
Balance at beginning of period 10 263 8 640
Issue of shares during period 648 1 623
Distributable reserves 14 288 10 040
Balance at beginning of period 10 040 5 893
Attributable income 8 922 4 147
Goodwill written-off (4 674) -
Ordinary shareholders' interest 25 199 20 303
Comments
1. Group profile
Enterprise Outsourcing Holdings Limited is an IT company listed on the Main
Board, Industrial - "Information Technology" sector of the JSE Securities
Exchange South Africa ("JSE") lists.
EOH is an enterprise solutions provider creating lifelong information
technology partnerships by developing strategy, supplying, implementing and
managing enterprise-wide business systems for medium to large clients in
commerce and industry.
EOH operates in the following three areas as a fully integrated business:
1.1 Strategic Solutions - is the initial point of contact with EOH clients
through IT strategy development, management consulting, IT-enabled business
process re-engineering, software selection and Supply Chain Logistics education
to support world-class enterprise systems.
1.2 Business Systems - includes the provision and implementation of enterprise
business solutions through project management, software configuration, training
and support. Solutions offered are Enterprise Resource Planning (ERP), Customer
Relationship Management (CRM), e-Commerce Solutions, Supply Chain Planning and
Business Intelligence.
1.3 Outsourcing Solutions - involves comprehensive maintenance and support of
the clients' IT infrastructure and applications through the offering of full IT
outsourcing, Hosting and Application Service Provision (ASP).
2. Financial results
2.1 The board is satisfied with the overall performance for the period under
review. Revenue has grown by 42% over the similar period of the prior year.
Profit has increased by 20% and headline earnings per share by 26%.
2.2 The balance sheet remains strong with the growth being fully financed
internally. The existing cash resources are adequate to support our growth
plans.
2.3 Headline earnings per share is based on the profit for the period adjusted
for goodwill written-off.
3. Future plans
The board intends to continue following its current business strategy and grow
the business organically, both locally and at our overseas operations
(Australia and Mauritius).
Prospects for the future remain very positive.
4. Dividends
No dividend has been declared as the Group policy is not to pay dividends until
EOH reaches maturity.
5. Strate
The JSE and Share Transactions Totally Electronic ("STRATE") informed the
company of its move to the electronic settlement environment as from 2 April
2001. from this date shareholders will be able to submit their share
certificates for conversion into an electronic record ("dematerialisation").
Trading for electronic settlement will commence on 23 April 2001. Shareholders
are advised to acquaint themselves with the requirements and implications of
this change and to consult their stockbrokers or advisors for assistance.
Queries could be directed to STRATE on (011) 520 7085.
10 April 2001
REGISTERED OFFICE
Ground Floor Tel: (011) 616 9920
Block F Fax (011) 616 9929
Gillooly's View website: www.eoh.co.za
1 Osborne Lane e-mail: info@eoh.co.za
Bedfordview Company registration no: 1998/014669/06
DIRECTORS
Asher Bohbot (Chairman and CEO) Abre Pienaar
Rob Sporen* Peter Bartlett
Roedolf du Toit Bernard van den Berg
Antonio Cocciante
(*Dutch)
For further information, please contact Rob Sporen on the above numbers or on
cell 082 444 7533.
EOH interims reiterate solid business value
Press Release
Tuesday 10 April 2001
BEDFORDVIEW - JSE-listed Enterprise Outsourcing Holdings Ltd (EOH) today
announced sturdy interim results for the six months ended 31 January 2001.
Revenue grew to R40,348 million, a 42% hike from the R28,506 million recorded
for the comparative half-year period. Net profit climbed 20%, increasing from
R4,147 million to R4,997 million. Headline earnings per share rose 26% to 10,39
cents per share, over the six months period.
EOH focuses on turning information technology into business value. A life-long
information technology partner to medium to large clients in commerce and
industry, this 'Enterprise Solutions Provider's successfully maintains
leadership in the field of developing IT strategies; supplying and implementing
solutions, and managing enterprise-wide business systems.
The group's clients include high profile corporates such as The Barlow Group,
Dorbyl Group, Group Five, PG Bison, Toyota, Siemens, Ford Motor Company, AECI
Ltd, Tongaat-Hulett Group Ltd, Simba and Panasonic.
"Historically, our financials paint a picture of consistent business growth.
This set of results is no exception. We are pleased to report a strong income
statement and balance sheet. Our cash resources remain more than adequate to
fund our growth plans internally," states Asher Bohbot, EOH's chief executive.
"Over this reporting period, we have bedded down our business network and
structure, and just after it we have established operations in Australia and
Mauritius. Our overseas operations will in time mirror on the South African EOH
model.
EOH's merit lies in their steady focus on strategy for profitable growth and
efficient rollout of business development. The group intends to build on
existing competencies through customer partnering, outsourcing, enterprise
business applications and strategic solutions. Selective acquisitions, advanced
business applications and successful overseas operations supplement their
business goals, with resources being channelled into advancing of their
Application Service Provision (ASP) offering.
During the period under review, EOH acquired a 100 percent stake in Enterprise
Softworx, the sole representative of business application packages for Baan
(ERP including the new economy applications iBaan), CODA (financial systems)
and Clarus (e-commerce software). "Softworx's impressive client base on the one
hand and the extensive skills base of its employees on the other, fits
perfectly with our core business and will further enhance our growth in the
enterprise systems arena," expands Bohbot.
"Business remains healthy. We emphasize our objective to create value for all
our stakeholders, maintaining a proactive stance to business development in
line with our corporate culture to deliver consistent growth," Bohbot
concludes.
In line with EOH's policy not to pay out dividends until the group reaches
maturity, no dividend has been declared.
Ends/
ABOUT EOH
Enterprise Outsource Holdings focuses on offering clients the complete
enterprise business solution. The company has 3 business units that service our
clients' requirements:
Strategic Services: Guiding clients to develop IT strategies, making knowledge
transfer and successful management a reality, to further client business
initiatives.
Business Systems: The implementation, training and support of best-of-breed
ERP, e-commerce and CRM packages, customised to meet client-specific needs.
Outsourcing Solutions: A single value-added service through the provision of
continuous access to current and emerging developments in IT by integrating
latest models. The design, implementation and outsourcing for mid sized
customers with Application Service Provider (ASP) at it's core.
Issued on behalf of : ENTERPRISE OUTSOURCING HOLDINGS LIMITED
Client Contact : Mr Asher Bohbot
Position : Chief Executive
Tel No : (011) 616-9920
Editorial Contact : Ms Gail Young
Tel No : (011) 880-0364
Fax No : (011) 788-3697
Email : southgro@icon.co.za
