JSE-listed iOCO, beforehand EOH Holdings, has skilled six consecutive months of profitability – the primary such interval in three years – following a groupwide cost-cutting initiative that noticed the disposal of loss-making entities throughout the group.
In response to iOCO’s interim outcomes for the six months to January 2025, printed on Tuesday, gross revenue for the interval (excluding non-recurring objects) elevated by 2.8% yr on yr to R823-million, with gross revenue margins rising from 27% to 30%.
“Within the first stage of our turnaround plan, we prioritised disciplined value rationalisation and strategic investments in development. A radical evaluation of company and head workplace capabilities uncovered inefficiencies, which had been addressed by streamlining processes to create a nimble and decisive group, all whereas sustaining strong governance requirements,” iOCO chief monetary officer Ashona Kooblall mentioned in commentary alongside the outcomes.
“This stage required us to make daring and crucial selections, together with divesting onerous or loss-making operations, to totally focus on our core competencies.”
Though group income fell by 6.4% yr on yr to R2.7-billion, Ebitda – earnings earlier than curiosity, tax, depreciation and amortisation – grew by a formidable 159% to R252-million within the six months to January. iOCO mentioned a stronger income base improved the group’s operational effectivity, which led to greater margins throughout the board.
Working margin grew to 7.8%, up from 0.3% the earlier yr. Equally, Ebitda margin grew from 3.1% within the first half of 2024 to 9.2% within the first half of 2025.
Steadier revenues and improved operational efficiencies gave iOCO the chance to make use of its improved money flows to chip away at its debt. iOCO’s debt now sits at R613-million in comparison with R644-million within the earlier interval. The group paid R39-million in curiosity and repaid R31-million in capital within the six months to January.
Funded from money
iOCO reported a major discount in the usage of its overdraft facility within the interval, which was beforehand utilised to its most capability. Curiosity paid on the overdraft dropped from R22-million within the 2024 monetary yr to simply R6-million within the first half of 2025.
Learn: Huge administration shake-up at iOCO as co-CEOs appointed
“These repayments had been completely funded by money generated from operations – a historic milestone for iOCO, as capital repayments had been beforehand reliant on asset disposals. This marks a pivotal second in establishing sustainable monetary practices and bolstering operational resilience,” mentioned Kooblall.
Learn: Former Dimension Information boss joins iOCO board
iOCO’s value rationalisation efforts are a part of a broader turnaround technique that has included a rebranding from EOH to iOCO in December 2024, adopted by sweeping administration modifications at each the chief and board degree. These embody the appointment of joint CEOs and government administrators Rhys Summerton and Dennis Venter in February. This was adopted an announcement in March that former Dimension Information government Nompumelelo Mokou, will be part of the iOCO board of administrators as chair of its audit and danger committee on 1 Could.
The group has reorganised its operations alongside six strategic pillars, particularly: Digital, Infrastructure Companies, Linked Industrial Ecosystems, Digital Enterprise Options, Outsourced Information Options and Worldwide.
The digital enterprise is iOCO’s greatest income generator by far. Its revenues for the primary half of the group’s 2025 monetary yr quantity to R807-million, with a gross revenue margin of 30%. The infrastructure companies enterprise adopted swimsuit with income of R475-million, though its gross revenue margin was decrease at 22.4%.
iOCO’s worldwide division confirmed the best gross margins at 38%, though revenues had been the second lowest amongst others within the group at R272-million. The worldwide enterprise has operations past sub-Saharan Africa, attracting new clients in Europe and the Center East.
“The group has recognized enlargement alternatives, centred on a six-pillar technique, together with boosting gross sales capabilities and re-establishing end-user relationships. iOCO’s progress displays resilience, willpower and strategic execution. We’ve got made important strides in resetting the corporate, driving development and creating worth for stakeholders,” mentioned Kooblall. – © 2025 NewsCentral Media
Get breaking information from TechCentral on WhatsApp. Join right here.
