iOCO Limited (formerly EOH Holdings)
South African ICT services group. Revenue grew 2.7% while operating profit rose 14.8%, lifting operating margin to 8.4% from 7.5%. Net cash from operating activities was R239m, 49% of operating profit (FY25: 101%).
Revenue
R5.73bn
▲ +2.7% vs FY25
Operating profit
R483m
▲ +14.8% vs FY25
Operating margin
8.4%
▲ from 7.5% in FY25
Headline earnings per share
57.0c
▲ +42.5% vs FY25
Total across four areas
17/ 40
Calculated from iOCO's published numbers using fixed thresholds. Not a rating. The previous window (FY21–FY25) scored 24/40.
The score describes how the business has been run and funded, area by area. A higher or lower score is a point of comparison between companies, not a statement that one is better than another.
The fall from 24 comes from Liquidity (9 to 1): FY26 cash conversion was 49% against 101% in FY25, and working capital rose 2.5 points of revenue across the window. Three features of the rubric shape the total: iOCO pays no dividends, so two Qualitative rules score 0; the largest-segment rule depends on how iOCO groups its businesses; and the cash conversion test uses a single year. Net debt (0.58×) sits just above the 0.5× band edge for a higher Solvency sub-score. Every threshold is public in the scoring rubric.
Operations
Is the business making more from what it sells?
What drives the score
Operating margin 8.4% in FY26 against 1.7% in FY22 (+6.8 pts); revenue changed −1.3% a year.
Comment
Margin was 1.7% in FY22, 1.9% in FY24 and 7.5% in FY25, then 8.4%. The big step came in FY25, when operating costs fell 23% while revenue fell 7.5%. Revenue shrank over the window (R6,031m in FY22 to R5,733m in FY26), so the margin gain came from costs, not growth: operating costs fell from 26.4% to 19.3% of revenue while gross margin was broadly flat (28.0% to 27.7%).
Liquidity
Does profit turn into cash?
What drives the score
Cash conversion 49% of operating profit in FY26 (101% in FY25); net working capital is 6.1% of revenue, +2.5 pts since FY22.
Comment
Net cash from operating activities was R239m in FY26, 49% of operating profit (R483m), against R423m or 101% in FY25. Cash generated by operations fell from R567m to R368m, and net working capital rose R165m to R352m because trade payables fell R168m while receivables rose R24m. Operating cash flow was negative in FY23 and FY24. Cash conversion is a single-year test: it scored 5 on FY25 and 0 on FY26.
Solvency
How comfortable is the debt?
What drives the score
Net debt (borrowings and leases less cash) 0.58× operating profit; interest cover 7.1×. No trend deduction applies.
Comment
Debt is R698m (bank borrowings R619m and leases R79m) against R417m of cash, so net debt is R281m: 0.58× operating profit, 0.74× in FY25 and 34.5× in FY21. Interest cover improved from 4.4× to 7.1× as operating profit rose and finance costs fell from R96m to R68m. Total equity rose from R753m to R1,034m. Total debt has fallen from R2.7bn in FY21, helped by the sale of businesses.
Qualitative
Are the habits and disclosures consistent?
What drives the score
Passed 2 of 5 rules (the two audit rules). iOCO pays no dividends, free cash flow was positive in only 3 of the last 5 years, and one segment is above 50% of revenue.
Comment
iOCO paid no dividends in any year of the window, so the two dividend rules score 0. IT Services is 75.6% of FY26 revenue on the three-segment structure iOCO now reports, so the segment rule scores 0; on the seven-segment structure used up to FY25 the largest segment was 30.9%. The audit opinion on the FY26 statements (Moore Johannesburg Inc., dated 12 October 2026) is unmodified with no going-concern uncertainty; the key audit matters were goodwill impairment and, in the separate company statements, expected credit losses on group loans. The restatements found are presentation or per-share adjustments (segments, deferred tax and lease disclosures, and per-share figures for the 2023 rights offer), not restated profit or equity. This area tests dividends, concentration and audit rules only; it is not an assessment of management quality, competitive position or governance.
Revenue
R5,733m
down 11% since FY21
Operating profit
R483m
up R428m since FY21
Operating margin
8.4%
0.9% in FY21
Net profit (continuing)
R357m
first profit in FY25 (R258m)
Operating cash flow
R239m
49% of operating profit (FY25: 101%)
Free cash flow
R157m
after capex; FY25 R369m
Net debt (incl. leases)
R281m
0.58× operating profit (FY21: 34.5×)
Headline EPS (cents)
57.0c
FY25 40.0c; FY21 −98.0c
iOCO reports three segments from FY26: IT Services (75.6% of revenue), Operational Technology and International. It reported seven segments up to FY25, so segment shares are not comparable year to year. Segment adjusted EBITDA margins, the company's own measure before corporate overheads: IT Services 16.4%, Operational Technology 17.1%, International 10.0%.
Operations
▲ Margin much higherLiquidity
▼ Cash conversion downSolvency
▲ Debt much loweriOCO has moved from losses and heavy debt to profit and a much lighter balance sheet: net debt of R281m is 0.58× operating profit, against 34.5× in FY21. Operating margin has risen from 0.9% to 8.4%, almost all from lower costs rather than higher sales, since revenue is 11% lower than in FY21. The gap between profit and cash is the point to read alongside: in FY26 operating cash flow was 49% of operating profit.
iOCO paid no dividends but bought back R69m of its shares in FY26 (about 2.6% of shares in issue), 53% of the free cash flow left after lease payments. Management guides to FY27 EBITDA of at least R680m. Whether any of this suits a given portfolio is a question of individual goals and risk appetite, which this scorecard does not address.
This scorecard presents a descriptive summary of iOCO Limited's published financial results for FY2021–FY2026 (years to 31 July, IFRS, South African rand). FY26 figures are from the audited annual financial statements (audit report dated 12 October 2026) and the results announcement of 13 October 2026. FY2021 is the comparative in the FY2022 statements, restated to continuing operations. The business health score is a description of the business based on fixed, published thresholds; it is not a rating, and a higher or lower score does not mean one company is better than another. It does not constitute financial, investment or tax advice, a recommendation to buy, hold or sell any security, or a valuation or price target. Clearview Financial (Pty) Ltd is not a licensed financial services provider.
Holdings: the author holds shares in iOCO Limited in his personal portfolio.
Source: iOCO Limited annual financial statements FY2022–FY2026 and results announcements (JSE SENS) · ioco.tech
The full report walks through every year of iOCO Limited's published results: revenue, margins, segments, cash flow, balance sheet and the share price.
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