EOH recovers from R1.3 billion operating loss | Fin24

EOH made a R1.3 billion loss in 2020.

Technology group EOH has made a recovery after a bruising loss in 2020, as it works to clean up its image and restructure its business.

On Tuesday, in a trading update for the year ended 31 July 2021, EOH said it anticipates its operating profit to have increased between R125 million and R175 million. Its latest performance is a vast improvement to its R1.3 billion operating loss in 2020.

The group also said it expects its headline loss per share to improve between 93% and 99%, from 495 cents in 2020. Its earnings are likely to pass the R500 million mark, up from R72 million in 2020.

Despite its turnaround performance, EOH said its 2021 financial year was impacted by Covid-19, load shedding and the July riots, which took place in KwaZulu-Natal and Gauteng. The group added that it had made progress on its disposal strategy and cost optimisation. 

The company has been at the centre of a corruption scandal, that has seen it launching a R6.4 billion civil claim against former CEO Asher Bohbot and other executives.

“Over the past two years, EOH has actively focused on its turnaround strategy, which was focused on liquidity and transparency. The management team has closed out inherited legacy issues, refined and revised the corporate structure and positioned the business for growth,” said EOH.

The group will release its 2021 results by 28 October. Its share price surged by almost 9%, following the trading update.

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