EOH profits sink as CEO Stephen van Coller resigns
EOH Holdings has unveiled its latest financial results under the leadership of outgoing CEO Stephen van Coller, indicating a challenging landscape for the business. In the six months ending on January 31, 2024, EOH reported a headline loss per share of 11c, showing a slight improvement compared to the 17c loss reported a year earlier.
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EOH Holdings has unveiled its latest financial results under the leadership of outgoing CEO Stephen van Coller, indicating a challenging landscape for the business.
In the six months ending on January 31, 2024, EOH reported a headline loss per share of 11c, showing a slight improvement compared to the 17c loss reported a year earlier. However, revenue declined from R3.2 billion to R3.1 billion during the same period, while group operating profit dropped significantly from R142 million to R9 million.
The company attributed these challenges to a tough business environment persisting from the second half of the 2023 financial year into the first months of FY2024. Despite a modest uptick in trading and tendering activity later in the period, revenue continued to shrink.
On a positive note, EOH managed to reduce its interest charge from R102 million to R68 million, following a recent capital raise of R600 million, which included a rights issue and refinancing of consortium facilities. However, additional interest charges of R14 million on legacy debts partially offset this improvement.
Van Coller, set to leave EOH on March 31, acknowledged the company’s longstanding struggle with corruption scandals, unprofitable contracts, and debt burdens. He expressed confidence in the team’s ability to steer EOH toward growth following recent financial moves.
In January, EOH announced Andrew Mthembu as the incoming executive chairman, pending the appointment of a new CEO. The company’s decision to appoint Mthembu temporarily suggested internal challenges in identifying a successor to Van Coller.
Despite the decline in operating profit, EOH remains optimistic about its future outlook. It emphasized its technology offerings, diverse client base, and strong international performance. With a recent capital raise and improved capital structure, EOH aims to execute its growth strategy and business consolidation, positioning itself to capitalize on the increasing demand for digital transformation.
