JSE-listed information technology services company EOH has posted a profit of R147-million for the financial year ended July 31, compared with a loss of R1.3-billion posted for the prior financial year.
The company on October 28 said its work to close out legacy contracts and make targeted disposals over the past two years had resulted in more profit from a smaller revenue base of R7.9-billion.
Total revenue decreased to R7.88-billion for the full-year from R11.27-billion in the 2020 financial year; however, gross profit margin improved to 28% from 22% in the prior financial year and operating margins increased to 2% from -12%.
Further, the adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) margin improved to 9% from 0% in the 2020 financial year.
“Business disposals and the close-out of loss-making legacy contracts accounted for about 75% of the revenue decline. Base revenue, which is total revenue excluding the impacts of the legacy issues clean-up,
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