iOCO turnaround

[Hanno Labuschagne]

iOCO turnaround

iOCO, formerly EOH Holdings, has published a trading update for the year ended 31 July 2025, revealing that it expects significant operating profit and earnings growth.

The company said it expects operating profit to grow by 260% to 285%, to between R395 million and R420 million.

 

[The_MAC]

Every time I see this name come up I get naar, thinking back to an RFP we had with these guys a while back, amateur hour is all I can say

 

[DoringDraad]

iOCO’s trading update looks flashy on the surface, but the numbers don’t hold up to scrutiny:

• “260% profit growth” is misleading : last year’s operating profit base was tiny (about R110 m), so tripling it to R395–420 m is less impressive when you recall EOH once posted billions in profit before the corruption scandals.
• EBITDA vs. EPS mismatch : EBITDA of ~R500 m sounds strong, but headline earnings per share are guided at only 35c–45c. With 500 m+ shares in issue, that’s roughly R175–225 m in earnings, meaning nearly 60% of EBITDA is being eaten by finance costs, tax, and adjustments. The debt load and dilution are still crippling.
• Cash flow reality check : claiming “strong free cash flow” while still servicing heavy legacy debt doesn’t square. EOH/iOCO was forced into multiple fire sales and restructures over the last five years just to stay solvent.
• Revenue growth only just returned : they admit revenue only ticked up in the second half of FY25. After years of contraction, one half-year of growth doesn’t prove a turnaround.
• Global ambition vs. track record : talk of being “a premier technology partner in South Africa, the Middle East, and the UK” rings hollow given the group’s shrunken footprint after divestments, regulatory probes, and reputational damage.

In short: the percentages sound exciting, but the base is tiny, the debt hangover is massive, and the EPS guidance shows the business is still far from a real recovery.