| Wed 10 Apr 2002, 0:00 | | Enterprise Outsourcing Holdings - Interim Report |
|
January 2002
Enterprise Outsourcing Holdings Limited
(Company registration no: 1998/014669/06)
Share code: EOH
ISIN code: ZAE000022026
REVENUE UP 38% HEADLINE EPS UP 22% PBIT UP 21%
GROUP INCOME STATEMENTS
Unaudited Unaudited
6 months to 6 months to
31 January 31 January Change(%)
2002 2001
(R'000) (R'000)
Revenue 55 729 40 348 38
Profit before 7 786 6 420 21
interest
Net interest received 59 329
Profit from
operations before 7 845 6 749 16
goodwill
Goodwill amortised (329) (246)
Profit from 7 516 6 503
operations
Taxation 1 505 1 506
Net profit for period 6 011 4 997 20
Number of shares in
issue (`000) 50 667 50 278
Weighted average
number of shares in 50 034 50 435
issue (`000)
Earnings per ordinary
share (cents) 12,01 9,91 21
Headline earnings per
ordinary share 12,67 10,39 22
(cents)
Fully diluted
earnings per share 11,55 9,69 19
(cents)
GROUP BALANCE SHEETS
Unaudited Unaudited
31 January 31 January
2002 2001
(R'000) (R'000)
ASSETS
Non-current assets
Tangible assets 2 793 2 012
Intangible assets 21 526 16 684
Loans receivable 1 598 -
Current assets
Trade receivables 20 200 15 675
Other receivables 1 830 2 127
Inventory 264 151
Cash and cash equivalents 17 019 24 714
Total assets 65 230 61 363
EQUITY AND LIABILITIES
Ordinary shareholders' 37 180 25 199
interest
Non-current liabilities
Vendors for acquisition 150 4 609
Interest bearing borrowings 432 -
Deferred taxation 1 279 (777)
Current liabilities
Trade and other liabilities 16 473 12 408
Deferred revenue 10 433 14 539
Bank overdraft - 150
Taxation (717) 5 235
Total equity and liabilities 65 230 61 363
GROUP CASH FLOW STATEMENTS
Unaudited Audited
6 months to 12 months to
31 January 31 July 2001
2002 (R'000)
(R'000)
Operating income before
interest and taxation 7 786 12 233
Non-cash items 1 660 1 650
Cash generated from 9 446 13 883
trading operations
(Increase)/decrease in (6 683) 3 531
working capital
Cash generated from 2 763 17 414
operations
Taxation paid (3 637) (2 691)
Net interest income 59 595
Cash (outflow)/inflow from
operating activities (815) 15 318
Cash outflow to investing (7 545) (5 418)
activities
Cash inflow/(outflow) from
financing activities 505 (3 696)
Net (decrease)/increase in
cash and cash equivalents (7 855) 6 204
Cash and cash equivalents
at beginning of period 24 874 18 670
Cash and cash equivalents
at end of period 17 019 24 874
STATEMENTS OF CHANGE IN ORDINARY SHAREHOLDERS' INTEREST
Unaudited Unaudited
31 January 31 January
2002 2001
(R'000) (R'000)
Share capital and premium 11 609 10 911
Balance at beginning of 10 911 10 263
period
Issue of shares during 933 648
period
Repurchase of shares (235) -
Distributable reserves 25 571 14 288
Balance at beginning of 14 288 10 040
period
Attributable income 11 123 8 922
Goodwill written off - (4 674)
Reissue of shares held by 160 -
subsidiary
Ordinary shareholders' 37 180 25 199
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- involves comprehensive maintenance and support of the
clients' IT infrastructure and applications through the offering of full IT
outsourcing and Application Hosting.
EOH has a presence in all major centres in South Africa, Mauritius and
Australia.
Basis of preparation
The financial statements of the Group have been prepared in accordance with
the South African Statements of Generally Accepted Accounting Practice,
which policies are consistent with those of the prior year.
Financial results
The board is satisfied with the overall performance for the period under
review. Revenue increased by 38% to R55,7 million. Profit before interest
amounted to R7,8 million, reflecting an improvement of 21%. Headline
earnings per share rose by 22%.
The balance sheet remains strong with the growth being financed internally.
The cash resources were utilised for the investments described below, to
settle vendors for acquisitions and to finance the reduction in deferred
revenue due to its cyclical nature. The business remains practically debt
free.
During December 2001, 1 643 400 EOH shares were sold for strategic reasons
by a wholly owned subsidiary of EOH at a profit of R160 000, which has been
disclosed as a "Reissue of shares held by subsidiary" forming part of
distributable reserves in the changes of equity statement. These shares were
purchased during the previous financial year and were not cancelled.
Goodwill amortised is excluded from the calculation of headline earnings per
share.
Investments
The business has invested aggressively in growth activities both in capital
and expenditure. The main areas of investment were:
* the setting-up and development of our business offering in Mauritius;
* the establishment of J-Enterprise, a business unit focused on the
provision of a large enterprise software solution and its associated
services via an ASP model;
* the creation of Enterprise 21, an SBU housing the African distribution
rights and support for a major enterprise software package;
* the development of EOH Planning Solutions, a new business unit providing
generic services around Advanced Planning and Scheduling and Supply Chain
Optimisation; and
* the acquisition of the rights to represent three additional software
applications falling within our core business activities.
The resultant benefits of these investments will only materialise in future
periods.
Branding
In order to reflect the wider range of products and services we offer, we
have rebranded the holding company as "EOH" from "Enterprise Outsourcing".
All business units supporting specific software applications are now branded
independently.
Future plans
The consistent application of our business model and strategy are proving
beneficial and we intend to continue therewith. The major investment made in
new services and product offerings combined with our existing business as
well as our large customer base make us a leader in the enterprise software
arena.
Dividends
No dividend has been declared as the Group policy is not to pay dividends
until EOH reaches greater business maturity.
10 April 2002
REGISTERED OFFICE
Ground Floor, Block F, Gillooly's View, 1 Osborne Lane, Bedfordview
Tel: (011) 607 8100, 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)
COMPANY SECRETARY
SP Matheson
For further information, please contact Rob Sporen on the above numbers or
on cell: 082 444 7533
