Shares in troubled technology group EOH rose more than 14% on Thursday after it said that it has trimmed losses for the six months to end-January.
There has been an improvement of at least 64% on the previously reported total loss per share, which is expected to be no more than 750c, compared to 2099c in the six months to end-January 2019. The loss per share from continuing operations is set to be 600c, from a 2073c loss in the previous corresponding period.
As part of clean-up efforts, CEO Stephen van Coller has said EOH Mthombo, the business unit implicated in alleged fraud and which was primarily responsible for securing public-sector contracts, will be closed down. EOH Mthombo accounts for 18% of the company’s nearly R12bn revenue. EOH intends to continue with its strategy of selling assets, which has raised over R1bn in the past year, in a bid to reduce debt.