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About EOH

EOH is one of South Africa’s largest technology services companies and has a wide range of solutions in Industry Consulting, IT Services, Systems Integration, Software, Industrial Technologies and Business Process Outsourcing. The Group continues to be a market leader in its core Information and Communications Technology (ICT) businesses, which operate principally under the iOCO brand name. Our solutions are systemic to both the public and private sector in South Africa.

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COMMENTARY

"Our business, while smaller from a revenue perspective due to the strategic disposal of non-core assets and exit of under-performing businesses, is now a more sustainable business delivering better quality of earnings. We have seen a significant reduction in one-off costs and are confident that our legacy issues are now under control. The local and global economy remains constrained as we have seen the negative impact on some of our clients. However, we have also seen increased cloud uptake and spend on automation and application development in line with global trends since the beginning of the pandemic. Over the coming months, our focus will be on deleveraging, enhancing margins and remaining antifragile."

Stephen van Coller, CEO

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KEY HIGHLIGHTS FOR THE SIX MONTHS

The period
followed the
continued
improvement
theme

from the last two
six-month periods

Total Group
revenue of
R4.4 billion

Generated positive
operating profit of
R59 million
compared to
a R915 million
operating loss
in the prior period

Total gross profit
margin increased to
27.6%
from 24.2%
in the prior period

Total core
normalised EBITDA
of R363 million
representing a
0.5% increase
in EBITDA margin
to 8.3%

Total headline loss
per share improved
by 83%
with losses
narrowing from
350 cents per
share to
60 cents per share