Brief

iOCO posts 39% profit rise as acquisitions boost growth

The technology services group says recurring revenue now exceeds 60% and targets at least R680m EBITDA for FY2027.

By Felo News Desk · Published Thu, 15 Oct 2026 11:22:23 GMT

JSE‑listed technology services group iOCO announced a 39% increase in profit after tax to R357 million for the year ended 31 July 2026, according to a company release on 14 October 2026.

Revenue rose 3% on a constant‑currency basis to R5.73 billion, while EBITDA grew 18% to R610 million, improving the EBITDA margin to 11% from 9% a year earlier. Adjusted EBITDA, which excludes certain items, increased 21% to R624 million and headline earnings per share jumped 42% to 57 cents. Net finance costs fell 32% to R61 million, which iOCO attributed to lower debt levels and a more favourable interest‑rate environment.

The group completed two acquisitions before the end of the financial year: MySky Group of Companies, a network and IT infrastructure manager, and Astraia Technology, a cloud‑based software provider for finance and procurement. The purchases expand iOCO’s networking, IT‑management and business‑software capabilities and push recurring‑revenue streams to over 60% of total revenue.

Chief executive Rhys Summerton said the turnaround strategy is delivering results and that the company will keep investing in growth, market‑share gains and further strategic acquisitions. CFO Ashona Kooblall highlighted cash‑generation and conversion as ongoing priorities. iOCO forecasts EBITDA of at least R680 million for FY2027, about 11.5% higher than FY2026, provided trading conditions remain stable.

Key facts

iOCO profit after tax rose 39% to R357 million for FY2026 (bizcommunity.com)
Revenue increased 3% to R5.73 billion on a constant‑currency basis (bizcommunity.com)
EBITDA grew 18% to R610 million, margin improving to 11% (bizcommunity.com)
Net finance costs fell 32% to R61 million (bizcommunity.com)
iOCO acquired MySky Group and Astraia Technology before year‑end (bizcommunity.com)