Technology services provider EOH Holdings says it has delivered a "significantly improved" financial position for the financial year to July 31, as well as improved its capital structure, resolved many of its legacy issues, significantly streamlined its corporate office and administrative functions, and made additional progress in its growth strategy.

In a statement on its results for the financial year under review, the group explains that it formed a board committee, which includes interim CEO Marius de la Rey, CFO Ashona Kooblall and business turnaround specialists, to oversee significant value creation for the group to enhance its market position.

During the financial year to July 31, the group had been restructured into three divisions, with the aim to enhance the group's market share by fostering greater internal cohesion and optimisation of client solutions.

EOH’s operating companies iOCO South Africa and iOCO International are focused on differentiating themselves in the market. iOCO South Africa provides technology services to 38 of the top 40 JSE-listed South African companies, while iOCO International offers digital enablement services in the Middle East and Europe.

Easy HQ, now referred to as Outsourced Knowledge Services (OKS), offers people solutions and human resources platforms powered by technology platforms to various businesses.

EOH states that it successfully addressed the last remaining significant legacy issues, which means the group is now able to concentrate on implementing its Growth-Efficiency-Talent (GET) strategy more effectively.

Legacy payments are also nearing their conclusion, with final payments expected to wrap up during the 2025 financial year.

“By rationalising inefficient cost structures, we have also reduced complexity, optimised tax structures and established a lean, consolidated business model. While restructuring costs impacted performance [in the 2024 financial year], normalising these results reveals year-on-year growth in both operating profit and earnings before interest, taxes, depreciation and amortisation (Ebitda)," Kooblall says.

Group revenue for the financial year under review decreased by 3.1% year-on-year to R6-billion, while gross profit margins remained steady at 27.3%.

Adjusted Ebitda declined marginally to R307-million, but operating profit decreased by 17% year-on-year to R112-million.

The group's loss a share narrowed by 23% year-on-year to 10c, while the headline loss a share narrowed by 99% to 0.2c.

“Asset sales have assisted in a marked debt reduction and now the focus moves to operational efficiencies and value extraction from the restructure. This has unlocked more efficient day-to-day operations with promising growth potential.

"These are significant steps toward improving investor and other stakeholder confidence, giving us a strong competitive position in the market and setting the stage for future growth and innovation,” comments De la Rey.

The group will seek shareholder support at its upcoming AGM for a proposal to change the group's name to iOCO Limited.

EOH says the proposed name change aligns with its strategic objectives and branding initiatives.

"We have completed significant strategic realignment and are now poised to enter a new growth phase. We will continue our focus on becoming a leading customer-centric organisation and establishing ourselves as a best-in-class technology partner throughout the Europe, Middle East and Africa region.

"We are excited about the opportunities that lie ahead and are committed to delivering exceptional value to our customers and stakeholders,” De la Rey says.