EOH Exco chop salaries by 25%; ask staff to cut by 20%

Technology group EOH has revealed its performance for the first half of the year, showcasing a decrease in loss per share from continuing operations, even in the face of a 14% drop in group revenue and rising costs. The company's Chief Financial Officer, Megan Pydigadu, highlighted the positive results, including a notable improvement in gross margins from 20% to 24%. The company also reported healthy cash balances of 826 million for the first half, with an increase to 950 million by the second of April. Pydigadu emphasized the company's diverse client base, minimizing the impact of COVID-19 on specific industries heavily affected by the crisis. EOH's ability to support various sectors during the pandemic, particularly in digitization and enabling remote work, has positioned the company favorably. Amid the ongoing economic uncertainty, Pydigadu outlined the company's proactive crisis management strategies, which include cost-cutting measures such as a 25% salary reduction for the executive team and potential 20% cuts for staff. EOH's response to the crisis reflects its commitment to preserving jobs and ensuring financial stability. The company's significant role in supporting essential services and critical sectors during the lockdown underscores its resilience and adaptability. Pydigadu also discussed the demand for technology services in both the private and public sectors, highlighting EOH's integral involvement in key systems like banking, municipalities, and government agencies. The company's ability to facilitate remote work arrangements and maintain operational continuity has been critical in meeting client needs. Despite challenges presented by the pandemic, EOH has successfully managed its debt obligations, with a focus on selling assets to reduce net debt. The company aims to deliver 1.6 billion of debt reduction by February 2021, with plans to sell its RP assets playing a significant role in achieving this target. While there may be some delays due to COVID-19 impacts, EOH remains optimistic about the competitive interest in its assets and the overall debt reduction strategy. As the company navigates the uncertainties brought by the ongoing crisis, its strategic approach and financial discipline position it well for future growth and stability.