| Wed 21 Sep 2005, 9:01 | | Financial Report For The Year Ended 31 July 2005 |
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EOH - Audited Financial Report For The Year Ended 31 July 2005
AUDITED FINANCIAL REPORT FOR THE YEAR ENDED 31 JULY 2005
Enterprise Outsourcing Holdings Limited
(Incorporated in the Republic of South Africa)
(Company registration no: 1998/014669/06)
Share code: EOH ISIN: ZAE000022026
(`EOH` or `the Group`)
REVENUE UP 40% PBT UP 57% MARGIN UP 14% HEPS UP 26% CASH UP 11%
GROUP INCOME STATEMENTS
Audited 12 Audited
months to 31 12 months
July 2005 to 31 Change(%)
(R`000) July 2004
(R`000)
Revenue 420 225 299 535 40
Gross profit 46 551 29 175 60
Depreciation (5 774) (4 825)
Amortisation of goodwill (3 348) (1 125)
Amortisation of development (2 040) (2 024)
costs
Other expenses
Finance costs (858) (668)
Finance income 1 676 2 746
Share of profits of associate 294 -
companies
Profit before tax 36 501 23 279 57
Income taxation expense (12 699) (3 845)
Profit for the period 23 802 19 434 22
Attributable to:
Equity holders of the parent 23 802 19 134
Minority interest - 300
23 802 19 434
Number of shares in issue 51 267 50 667
(`000)
Weighted average number of
shares in issue (`000) 50 305 47 111
Earnings per ordinary share 47,32 40,61 17
(cents)
Headline earnings per
ordinary share (cents) 53,97 42,84 26
Diluted earnings per share 38,03 36,79
(cents)
Dividends per share (cents) 11,50 10,00
Reconciliation between earnings and headline earnings:
Net profit for the period 23 802 19 134
Goodwill amortised 3 348 1 125
Capital profit - (79)
Headline earnings 27 150 20 180
Headline earnings per 53,97 42,84
ordinary share (cents)
GROUP BALANCE SHEETS
Audited Audited
31 July 31 July
2005 2004
(R`000) (R`000)
ASSETS
Non-current assets 86 426 33 391
Property, plant and equipment 9 291 8 017
Goodwill 71 621 18 636
Other intangible assets 4 567 6 606
Investment in associate 295 -
Loans receivable 652 132
Current assets 157 045 133 885
Inventory 1 295 55
Trade receivables 82 589 70 592
Other current assets 4 081 1 543
Cash and cash equivalents 69 080 61 695
Total assets 243 471 167 276
EQUITY AND LIABILITIES
Equity attributable to equity holders 89 038 67 548
of the parent
Share capital 501 471
Share premium 10 797 8 306
Other reserves 705 471
Retained earnings 77 035 58 300
Non-current liabilities 34 340 24 178
Vendors for acquisition 32 864 22 375
Long-term borrowings 5 716 2 825
Deferred tax (4 240) (1 022)
Current liabilities 120 093 75 550
Trade and other payables 74 127 42 767
Deferred revenue 36 456 27 961
Bank overdraft 723 -
Taxation 8 787 4 822
Total equity and liabilities 243 471 167 276
Net asset value per share (cents) 173,68 133,32
GROUP CASH FLOW STATEMENTS
Audited Audited
12 months 12 months
to to
31 July 31 July
2005 2004
(R`000) (R`000)
Cash generated from trading operations 46 845 29 096
Decrease in working capital 11 921 30 413
Cash generated from operations 58 766 59 509
Taxation paid (9 150) (2 062)
Dividends paid (5 063) (3 531)
Net interest income 818 2 078
Cash inflow from operating activities 45 371 55 994
Cash outflow to investing activities (17 808) (53 424)
Cash (outflow)/inflow from financing (20 901) 18 729
activities
Net increase in cash and cash 6 662 21 299
equivalents
Cash and cash equivalents at the 61 695 40 396
beginning of the period
Cash and cash equivalents at the end 68 357 61 695
of the period
STATEMENT OF CHANGES IN ORDINARY SHAREHOLDERS` INTEREST
Audited Audited
31 July 31 July
2005 2004
(R`000) (R`000)
Share capital and premium 11 298 8 777
Balance at beginning of period 8 777 8 899
Issue of shares - share capital 6 -
Issue of shares - share premium 912 -
Movement in treasury shares 1 099 245
Treasury shares held in the EOH Share 504 (367)
Trust
Distributable reserves 77 740 58 771
Balance at beginning of period 58 771 43 183
Attributable income 23 802 19 134
Dividends (5 067) (3 547)
Movement in treasury shares 131 153
Treasury shares held in the EOH Share 272 60
Trust
Movement in other reserves (169) -
Outside shareholders` interest - (212)
Ordinary shareholders` interest 89 038 67 548
Comments
Group profile
EOH is a business and technology 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 clusters of
business units:
Consulting - Includes various business units offering services ranging from
strategic and business process consulting, project services, change management,
supply chain optimisation and education. This cluster also develops IT strategy,
advises on enterprise architecture, IT governance and risk management.
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.
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. In addition EOH offers full Business
Process Outsourcing (BPO) services.
EOH has a presence in all major centres in South Africa, Botswana and also
operates elsewhere in Africa.
Basis of preparation
The financial statements of the Group have been prepared in accordance with the
South African Statements of Generally Accepted Accounting Practice. The
accounting policies used are consistent with those of the prior year.
The Group`s auditors, IAPA Johannesburg Chartered Accountants (SA), have audited
the financial information for the year to 31 July 2005. 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 period under review.
Turnover, profit, margin, headline earnings per share and cash resources are up.
Future plans
EOH is now a major player in the consulting, technology and outsourcing arena,
with an extensive range of products and services serving various markets and
industries. EOH has achieved critical mass which will allow the business to
forge ahead towards its vision of being the
`No.1 Business & Technology Solutions Provider in Africa`
Now that EOH operates as a fully integrated business and all its operations are
housed under one roof, the group can better capitalise on the very large
customer base with opportunities to add further value to its existing and future
customers.
EOH`s growth strategy is based on 4 elements: organic growth of the business
units; acquisitions that fit the business culture and model; creating new
businesses; and the provision of integrated solutions involving multiple product
and service offerings by EOH.
EOH`s reputation, market penetration and recognition are contributing handsomely
to the continuous strengthening of the EOH brand, which is crucial to its growth
plans. On 14 September 2005, EOH shareholders approved the name change to `EOH
Holdings Limited`.
Transformation
Through the creation of the Mthombo Trust for the group`s PDI (previously
disadvantaged individuals) employees, which currently represent 35% of the total
staff complement, and the M-IT merger into EOH, we now have an empowered
business in the areas of broad based equity, employee profile, board
representation and operational management. EOH believes that the new reality
forms only the base from which the organisation will continue to transform.
Dividends
Notice is hereby given that a cash dividend of 11,5 cents per share (`the
dividend`) has been declared and is payable to shareholders recorded in the
books of EOH at the close of business on Friday, 28 October 2005. Shareholders
are advised that the last day to trade `cum` the dividend will be Friday, 21
October 2005. The shares will trade `ex` dividend as from Monday, 24 October
2005. Payment will be made on Monday, 31 October 2005. Share certificates may
not be dematerialised or rematerialised during the period Monday, 24 October
2005 to Friday, 28 October 2005, both days inclusive.
Asher Bohbot (Chief Executive Officer)
21 September 2005
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, John
King, Dion Ramoo, Nkosinathi Khumalo
COMPANY SECRETARY
SP Matheson
For further information, please contact Rob Sporen on the above numbers or on
cell: 082 444 7533
Date: 21/09/2005 09:00:18 AM
Produced by the JSE SENS Department
