| Thu 4 Oct 2001, 0:00 | | Eoh - Report For Year To 31 July 2001 |
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Enterprise Outsourcing Holdings Limited
(Company registration no: 1998/014669/06)
Share code: EOH
ISIN code: ZAE000022026
REPORT FOR YEAR TO 31 JULY 2001
REVENUE UP 43% HEADLINE EPS UP 28%
GROUP INCOME STATEMENTS
Audited Audited
12 months to 12 months to
31 July 2001 31 July 2000 Change(%)
(R'000) (R'000)
Revenue 84 094 58 988 43
Profit before interest 12 233 10 693 14
Net interest 595 860
received
Profit from
operations 12 828 11 553 11
before goodwill
Goodwill (456) -
amortised
Profit from 12 372 11 553
operations
Taxation 2 263 3 480
Net profit for 10 109 8 073 25
period
Number of 50 667
shares in issue 50 207
(`000)
Weighted
average number 50 072 50 294
of shares in
issue (`000)
Earnings per
ordinary share 20,19 16,05 26
(cents)
Headline
earnings per 20,52 16,05 28
ordinary share
(cents)
Fully diluted
earnings per 19,69 15,55 27
share (cents)
GROUP BALANCE SHEETS
Audited Audited
31 July 2001 31 July 2000
(R'000) (R'000)
ASSETS
Non-current assets
Tangible assets 2 154 1 338
Intangible assets 16 453 6 121
Current assets
Trade receivables 15 532 12 117
Other receivables 2 659 1 679
Inventory 585 173
Cash and cash equivalents 24 874 18 999
Total assets 62 257 40 427
EQUITY AND LIABILITIES
Ordinary shareholders' 29 466 20 055
interest
Non-current liabilities
Vendors for acquisition 50 4 737
Interest bearing borrowings 132 59
Deferred taxation 761 (70)
Current liabilities
Trade and other liabilities 11 820 5 135
Deferred revenue 18 094 6 989
Bank overdraft - 329
Taxation 1 934 3 193
Total equity and liabilities 62 257 40 427
GROUP CASH FLOW STATEMENTS
Audited Audited
12 months to 12 months to
31 July 2001 31 July 2000
(R'000) (R'000)
Operating income
before interest and 12 233 10 693
taxation
Non-cash items 1 650 550
Cash generated from
trading operations 13 883 11 243
Decrease in working 3 531 2 094
capital
Cash generated from 17 414 13 337
operations
Taxation paid (2 691) (2 894)
Net interest income 595 860
Cash inflow from 15 318 11 303
operating
activities
Cash outflow to (5 418) (9 061)
investing
activities
Cash
(outflow)/inflow (3 696) 3 290
from financing
activities
Net increase in
cash and cash 6 204 5 532
equivalents
Cash and cash
equivalents at 18 670 13 138
beginning of period
Cash and cash
equivalents at end 24 874 18 670
of period
STATEMENTS OF CHANGE IN ORDINARY SHAREHOLDERS' INTEREST
Audited Audited
31 July 2001 31 July 2000
(R'000) (R'000)
Share capital and premium 10 066 10 764
Balance at beginning of period 10 764 8 640
Issue of shares during period 1 079 2 124
Repurchase of shares (1 777) -
Distributable reserves 19 400 9 291
Balance at beginning of period 9 291 5 892
Attributable income 10 109 8 073
Goodwill written off - (4 674)
Ordinary shareholders' 29 466 20 055
interest
COMMENTS
GROUP PROFILE
EOH is a business solutions provider creating lifelong information
technology partnerships by developing IT strategies, supplying and
implementing solutions and managing enterprise-wide business systems for
medium to large clients.
EOH operates in the following three clusters of SBUs as a fully integrated
business:
EOH 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.
Business Systems - 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 Systems and e-
Commerce.
EOH 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).
EOH has presence in all major centres in South Africa, Mauritius and
Australia.
FINANCIAL RESULTS
The board is satisfied with the overall performance for the year under
review. Revenue has increased by 43% over the previous year. Profit has
increased by 25% and headline earnings per share by 28%.
The balance sheet remains strong with the growth being financed internally.
Cash generated from operating activities exceeded the prior year by 36%. The
cash resources were utilised to finance the share buy backs and settle all
vendors for acquisitions with no further payments or share issues required
for past acquisitions. The existing cash resources are adequate to support
our growth plans.
Goodwill amortised and a capital profit of R288 000 is excluded from the
calculation of headline earnings per share.
FUTURE PLANS
- We will continue to follow the proven business model in our current market
and evaluate entry into new markets using a similar model.
- EOH will continue to build technology partnerships with our large current
customer base by extending the range of services offered to them.
- We are well positioned to capitalise on the growth trend in IT outsourcing
in its various forms (co-sourcing, hosting, ASP).
- We will continue growing our overseas operations in Australia and
Mauritius where we have established a 50/50 joint venture with the largest
conglomerate in the territory providing all IT services based on the EOH
model to our partner's businesses as well as to the rest of the Indian Ocean
Islands.
- EOH will build the brand to become the chosen technology partner for our
customers and in order to attract and retain the best skills available.
SHARE BUY BACKS
During the year 1 753 500 shares were repurchased by a wholly owned
subsidiary of EOH and will not be cancelled.
DIVIDENDS
No dividend has been declared as the Group policy is not to pay dividends
until EOH reaches maturity.
STRATE
EOH moved to the Share Transactions Totally Electronic ("STRATE")
environment on 2 April 2001. Trading for electronic settlement commenced on
23 April 2001 and the first electronic settlement of EOH share trades
followed on 30 April 2001.
4 October 2001
REGISTERED OFFICE
Ground Floor, Block F, Gillooly's View, 1 Osborne Lane, Bedfordview
Tel: (011) 616 9920, fax (011) 616 9929, web site: www.eoh.co.za, e-mail:
info@eoh.co.za
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
