Stephen van Coller has been driving the clean-up of EOH, which was mired in controversy a few years ago after irregularities, fraudulent public sector contracts, premature recognition of revenue and a number of other factors resulted in a crisis under its previous management, and ended up with 2020's restatement of its accounts for the past few years.
EOH says it has made progress in returning the technology services group to sustainability after disposing of non-core assets, exiting underperforming operations and cutting debt. While that has also reduced revenue, it says it delivered better-quality earnings for the six months to end January.
CEO Stephen Van Coller, who took over in 2018, says the group has significantly reduced costs over the past year. He's also confident that it has finally brought the legacy issues he inherited under control. However, he didn't reckon on Covid-19, which has held back the recovery as customers delayed spending on large, planned IT projects, specifically in the hardware space.
Five of the eight problematic public sector contracts have been settled, with one ceded to a sub-contractor with settlement currently in arbitration, another concluding at the end of April, and one that has been terminated with handover discussions...