No regrets, but if I'd known about corruption would've reconsidered the offer - outgoing EOH CEO

EOH Holdings has reported a total headline loss per share of 11 cents, a slight improvement compared to a 17 cents loss in 2023.

The ICT services provider on Tuesday presented its results for the six months ended 31 January 2024, the last to be delivered under Group CEO Stephen van Coller.

The outgoing CEO has led the company's turnaround strategy after EOH was implicated in corruption scandals involving public sector contracts.

In June 2021, van Coller reported that the business had lost R4 billion through mismanagement, corruption, and stealing.

For its 2024 half year, EOH saw a dip of 2% in continuing revenue to R3 146 million, compared to R3.2 billion for HY2023. 

EOH says it has closed its final legacy issue after reaching an agreement with SARS, and looks to improved momentum amid a challenging environment

"For many years we have been battling the effects of corruption scandals, unprofitable legacy contracts, inefficient corporate structures, huge debt burdens and a highly inefficient capital structure."

"Following our successful R600 million capital raise last year and the recent closure of our last major legacy issue, EOH can now get back to business and focus on our Growth-Efficiency-Talent strategy."

Stephen van Coller, Outgoing Group CEO - EOH

Bruce Whitfield asks van Coller if he has any regrets, looking back at the challenges he's faced at EOH.

It has certainly been an epic journey, chuckles van Coller.

While he has no regrets, it's one he's not sure he'd want to do again, with the benefit of hindsight. 

"Certainly there have been unexpected things along the way, but if you think of everything we've been through - whether it was the bribery and corruption, the COVID, the rights, the flooding, the Ukrainian war, the political issues...

"It has been, to say the least, interesting... but I've learnt an enormous amount and I think the team has as well, so I have no regrets."

Stephen van Coller, Outgoing Group CEO - EOH

Van Coller adds that if he HAD known about the bribery and corruption at the Group it would have been a different story.

"I don't think anyone in their right mind would have gone in because that's a very, very difficult thing from a culture perspective - with your customers, with your perception in the market..." 

Stephen van Coller, Outgoing Group CEO - EOH

He says people still trying to look back at what the share price was at the beginning compared to now, is really an irrelevant exercise because it is such a big change.

"The attraction of EOH was just really where it was; it had to be turned around. It was these 283 small businesses, we squashed those togehter now into three main businesses... and it's really starting now to start to function as a real business."

Stephen van Coller, Outgoing Group CEO - EOH

That achievement has been quite satisfying says the outgoing CEO, even though EOH was forced to sell some businesses they didn't want to sell.

At least they saved some jobs, he emphasizes, and saved those businesses by selling them out of the Group and in the process bring down a lot of debt.

"I've had bank CEOs thanking me for saving depositors money because it was a huge amount of money we got there, and it's a lot more manageable now. There's a lot of satisfaction in doing that."

Stephen van Coller, Outgoing Group CEO - EOH

Scroll to the top of the article to listen to the full conversation