iOCO, a technology services group listed on the Johannesburg Stock Exchange and formerly known as EOH, reported profit after tax of R357 million for the financial year ended 31 July, up 39% from the previous year. Improved margins and lower finance costs contributed to the increase, while the company continued to expand its software and IT infrastructure services through acquisitions.
Revenue rose 3% on a constant currency basis to R5.73 billion, compared with R5.58 billion a year earlier. Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) increased 21% to R624 million. EBITDA rose 18% to R610 million, with the margin reaching 11%, up from 9% in the previous financial year.
Headline earnings per share and earnings per share both increased 42%, from 40 cents to 57 cents. Net finance costs fell 32% to R61 million, reflecting lower debt and a more favourable interest rate environment. Revenue in IT services, iOCO’s largest segment, grew 4%.
Group CEO Rhys Summerton attributed the results to changes in how iOCO manages its business units and allocates capital. The company has given its units greater responsibility for performance and is focusing investment on growth opportunities, with plans to expand its market share and pursue further acquisitions.
During the financial year, iOCO allocated capital to share repurchases, balance-sheet improvements and acquisitions. ITWeb Africa, a publication covering technology and business news, reported that iOCO completed two deals near the end of the period. MySky Group of Companies specialises in network and IT infrastructure management, while Astraia Technology provides cloud-based software for finance, procurement and other core business functions.
The acquisitions expand iOCO’s networking, IT management and business software offerings, which the group aims to sell to large enterprise customers. The company says its acquisition pipeline remains active, with opportunities ranging from founder-led technology businesses seeking to scale to larger deals.
Recurring revenue from ongoing contracts, including managed services, now represents more than 60% of group revenue. Group CFO Ashona Kooblall identified cash generation and conversion as priorities for the next phase of growth, alongside investment in the business and further acquisitions. She also pointed to recurring contracts and new revenue streams tied to modern technologies as sources of greater visibility into future cash flows.
For FY2027, iOCO expects EBITDA of at least R680 million, compared with R610 million in FY2026. The forecast is subject to current trading conditions and excludes unforeseen economic or market disruptions.
The company also plans to improve cash generation and conversion while keeping recurring revenue above 60%. Its capital allocation will continue to cover investment in the business, acquisitions, balance-sheet optimisation and shareholder returns. The board said momentum from FY2026 had carried into a positive start to the new financial year.
