[LISTEN] During tough economic times, people want to take costs out of their business, and automating and creating efficiencies is what we do...we see opportunity [there]: eohsolve's Megan Pydigadu on SAfm Market Update with Moneyweb. ICT podcast
Let’s get results from the technology sector. Shares of EOH came under a bit of pressure today following an announcement that it’s planning to raise around half a billion rand on the market by issuing new shares. The company said the upcoming rights issue would be complemented by an additional R100 million that it would be raising in an empowerment deal with its strategic partner, Lebashe Investment Group, following the release of its annual results [on Wednesday].
I think the biggest thing is that we have our strategic investor supporting us, and that was the most important thing to get right first. We’ve been talking about this since the beginning of the year, and so have felt – [from] our current investors and also potential investors – we believe that in the market there is support for this, and we will go and re-establish that again over the next few days with our results out.
Just lastly, at an operational level you are growing profits and you’re growing them really strongly, in fact almost doubling them, but at a bottom-line level [you’re] still not quite there. You made a loss, although the loss is smaller than the one reported the same time last year. So I’d like to understand what the road to profitability at the bottom line looks like, and how long it’s going to take you.
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