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EOH HOLDINGS LIMITED - Summarised audited financial statements for the year ended 31 July 2020

Release Date: 02/12/2020 11:15
Code(s): EOH     PDF:  
Wrap Text
Summarised audited financial statements for the year ended 31 July 2020

(Incorporated in the Republic of South Africa)
(Registration number 1998/014669/06)
JSE share code: EOH ISIN: ZAE000071072
(“EOH” or “the Company” or “the Group”)


“We are immensely pleased with the significant progress made by the EOH Group during the current
financial year. We have managed to position ourselves for growth and largely deal with our legacy issues
all while successfully steering the Group safely through unprecedented global market conditions. While
the economic recovery is uncertain, the path is now clearly set for EOH to capitalise on future growth
prospects which can be accelerated given the new normal is premised on an enhanced global digital
Stephen van Coller, CEO

Salient features
- Total headline loss per share decreased by 72% from 1 751 cents per share to 495 cents per share
- Operating cash flow generated of R706 million (H1:2020 R31 million and H2:2020 R675 million)
- Gross debt down 20% year on year to R2 638 million
- Further significant progress on deleveraging post-year-end – additional R410 million paid
- Key financial indicators
              - Total revenue – R11.3 billion
              - Gross profit margin – 21.9%
              - Total normalised EBITDA – R827 million
              - Total cash balances of R946 million

                                                                Audited restated for the
                                      Audited for the year                    year ended
                                        ended 31 July 2020                  31 July 2019         % change
 Total revenue                             R11 277 million               R14 949 million             (25)
 Headline loss per share
 (including discontinued
 operations)                            495 cents per share          1 751 cents per share           (72)
 Loss per share (including
 discontinued operations)               961 cents per share          3 041 cents per share           (68)

The presentation of the Group’s annual results hosted by EOH CEO Stephen van Coller and CFO Megan
Pydigadu, may be viewed via a webinar at 11h00 on 2 December 2020, by following the link:

This short-form announcement is the responsibility of the directors. This short-form announcement is only a
summary of the information in the full announcement and does not contain full or complete details. The annual
financial statements for the year ended 31 July 2020 have been audited by the Group’s external auditors,
PricewaterhouseCoopers Inc. expressing an unqualified audit opinion.

The audit report includes communication of key audit matters pertaining to, impairment assessment of
goodwill arising from business combinations, assessment of whether the Group is an agent or the principal
when recognising revenue on the sales of hardware and software licenses, accounting treatment of the Group’s
tax exposures, and fraud investigations, legal exposures and related provisions and contingent liabilities. These
are disclosed on pages 106 to 109 of the Groups’ annual financial statements which are available on the
Company’s website at

The auditors included a paragraph in their report on the fact that refinancing of the Group’s debt is due in
April 2021. The Group has come from a position of over R4 billion of debt in July 2018 to debt of slightly
over R2 billion as of 1 December 2020. Significant progress has been made on deleveraging the business
through the sale of assets. The Group has also been involved in constructive discussions with its lenders group
with a view to finalising the long term capital structure. Although the Group is far advanced in these
discussions with lenders the negotiations have not yet been concluded. The ability of the Group to repay its
debt as it becomes due is dependent on the timing and quantum of cash inflows from operations and its ability
to realise cash through a combination of disposals of non-core assets, or part thereof. As a result a material
uncertainty exists that may cast doubt on the Group’s ability to continue as a going concern if the refinancing
is not concluded with Lenders. The audit opinion was not modified in respect of this matter.

This short-form announcement has not been audited or reviewed by the Company's external auditors. Any
investment decisions by investors and/or shareholders should be based on a consideration of the full
announcement published on SENS and the issuer’s website as a whole.

The full announcement, which has been released on SENS, is available on EOH’s website at: and is also available on the JSE website at:

Copies of the full announcement may be requested from or the sponsor, Java Capital at

2 December 2020

Java Capital

Date: 02-12-2020 11:15:00
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