Top South African tech company in serious trouble

  • 📰 mybroadband
  • ⏱ Reading Time:
  • 51 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 24%
  • Publisher: 67%

Business News News

Business Business Latest News,Business Business Headlines

EOH, soon to be renamed iOCO, has reported a concerning rise in interest-bearing debt, which caused it to breach one of its debt covenants.

EOH released its results for the year that ended 31 July 2024, and the company pulled out all the stops to sell its turnaround story.

EOH interim CEO Marius de le Rey said asset sales have assisted in a marked debt reduction and that the company now focuses on operational efficiencies and value extraction. She added that having a determined value creation mindset driving growth and profitability, the outlook for the next year is promising.

Particularly concerning is that the downward trend, which EOH promised to turn around, continued over the last financial year. The chart below shows EOH’s revenue decline over the last six years and its net loss over the last three years.The most concerning part of EOH’s latest financial results is its deteriorating debt position, which caused it to breach one of its debt covenants.

Fast-forward a year and a half, and the company’s interest-bearing debt is once again a problem. It increased from R840 million to R960 million over the last year. Another one of its debt covenants restricts EOH from having an interest expense on debt that is greater than 2 times its EBIT .

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 11. in BUSİNESS

Business Business Latest News, Business Business Headlines