iOCO turnaround sees improved full-year guidance

Technology group iOCO has reported a strong set of interim results for the six months ended 31 January 2026, as the company signals some momentum in its turnaround plan.

The tech company, formerly EOH, printed an increase in profit after tax of 46% to R180 million in a Sens published on Wednesday.

Revenue for the period increased 3.5% to R2.83 billion, representing the first period of organic growth in several years.

Earnings before interest, tax, depreciation and amortisation (Ebitda) rose 21% to R305 million, with operating profit up 12% to R240 million. Headline earnings per share increased to 28 cents, supported by improved margins and lower finance costs.

iOCO CEO Rhys Summerton says the results reflect continued progress in executing the group’s turnaround strategy. Since its 2024 rebrand, the technology services provider has had to shake off alleged links between former EOH executives implicated in State Capture.

Read: Zondo praises EOH for coming clean, but says it cannot keep the proceeds of corruption

“Our strategy is delivering. We have improved profitability, embedded a decentralised model to empower business unit leaders to deliver their growth targets and focused on disciplined capital allocation. This foundation positions iOCO to expand market share and deliver sustainable growth,” says Summerton.

The turnaround strategy includes a focus on cost rationalisation, decentralisation and disciplined capital allocation.

As a result of its strengthened financial position, the group has raised its full-year guidance for the 2026 financial year. The JSE-listed company expects Ebitda to come in above R610 million and not less than 60 cents free cash flow per share.

iOCO share price

Alongside the improved financial performance, iOCO has also signed a binding agreement to acquire the MySky Group of Companies, a provider of enterprise networking and managed infrastructure services.

This is part of a bid to expand its infrastructure, connectivity and managed services capabilities while growing recurring revenue.

The initial tranche of the transaction value consists of R52 million – R47 million in cash and R5 million in iOCO equity. A second, performance-based tranche is contingent upon growth targets over the subsequent two years.

Read: iOCO’s cloud expansion in Saudi Arabia