MERGERS, ACQUISITIONS AND FINANCIAL RESULTS
EOH Market Cap Hits the Magic R1bn Number
JSE-listed technology services business, EOH, has grown its market capitalisation to R1bn off the back of a strong set of financial results. The company’s share price today climbed 2.4% to R12.80 at the time of writing, nudging its market cap just past the R1bn mark.
In its latest numbers, EOH reported a 38% increase in revenue to almost R1.7bn and boosted profit before tax by 36.6% to R159.2m. Headline earnings per share and earnings per share grew by almost 30% each.
Kaplan Equity Analysts MD Irnest Kaplan attributes the business’s success to a competent management team. He says that as a smaller company than competitors such as Business Connexion, EOH also has more scope to grow.
Asher Bohbot, CEO of EOH, says the company has grown in a recessionary market by remaining agile. Kaplan says many listed IT companies see R1bn as the magic number since many fund managers don’t consider investing in businesses with market capitalisations below that level.
EOH should be able to attract more interest from institutional investors now that it has passed this milestone. The company also increased its dividend by 20% from 30c to 36c for the year.