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Unaudited Summarised Group Interim Results for the Six Months ended 31 December 2020
METROFILE HOLDINGS LIMITED
Incorporated in the Republic of South Africa
(Registration number 1983/012697/06
Share Code: MFL ISN: ZAE000061727
(“Metrofile” or “the Company” or “the Group”)
UNAUDITED SUMMARISED GROUP INTERIM RESULTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2020
SALIENT FEATURES
REVENUE DOWN TO R455M – DECREASED BY 4%
EBITDA UP TO R155M – INCREASED BY 3%
NET DEBT IMPROVED TO R472M – DECREASED BY 10%
EPS UP TO 14.8c – INCREASED BY 22%
HEPS UP TO 14.8c – INCREASED BY 15%
DPS UP TO 7c – INCREASED BY 17%
SUMMARISED FINANCIALS
Unaudited Unaudited
six months six months
ended ended
R’000 31 Dec 2020 31 Dec 2019
Revenue 454 948 472 772
EBITDA 155 074 150 855
Operating profit 114 179 107 942
Profit for the period 65 300 49 661
EPS 14.8c 12.1c
HEPS 14.8c 12.9c
DPS 7c 6c
Net debt 472 203 571 880
INTRODUCTION
Metrofile Group is a leading records and information management specialist in Africa and the
Middle East, providing clients with end-to-end solutions for the complete data management
lifecycle, while ensuring they extract maximum value from their information assets. The
operations service clients of all sizes and sectors across South Africa, Kenya, Botswana,
Mozambique and the Middle East. Group companies operate from 64 facilities, at 35 locations,
covering 114 350 square metres of warehousing space.
Empowerment partner and strategic shareholder, Mineworkers Investment Company, owns 36.56% of
Metrofile’s equity.
FINANCIAL REVIEW
REVENUE
Revenue decreased by 4% to R455 million (1H2020: R473 million) due to the continued impact of the
lockdown measures in the digital services and products and solutions revenue streams.
Secure storage contributed 67% to Group revenue and was up 1% year-on-year, despite net flat volumes
and a reduction in handling activities. Closing box volumes for the Group as at 31 December 2020
amounted to 11.1 million (30 June 2020: 11.1 million) as net box volumes remained flat for the six-
month period. New box volume intake for the six months increased by 4% from new and existing
customers and was offset by destructions and withdrawals. Geographical performance in terms of box
volume growth resulted in a reduction in South Africa of 1%, growth in the Rest of Africa of 3% and
growth in the Middle East of 19%.
Digital services contributed 11% to Group revenue and was down 18% year-on-year, mainly as a
result of a delay in the start of digital projects and a decrease in scanning activities.
Products and solutions and business support services contributed 16% and 6% respectively to
Group revenue. Both these revenue streams decreased by 9% as a result of the impact of the
challenging economic conditions.
OPERATING PROFIT AND EBITDA
Operating profit rose by 6% to R114 million (1H2020: R108 million) mainly as a result of cost
reduction measures being in place. EBITDA increased by 3% to R155 million (1H2020: R151 million) due
to improved operational performance.
CASH AND DEBT
Net finance costs decreased by 26% to R26 million (1H2020: R35 million). Excluding the impact of
IFRS 16, net finance costs improved by 37% as a result of lower debt levels. Net debt reduced by
10% to R472 million for the six-month period since 30 June 2020 following improved cash
generation.
UPDATE RELATING TO THE PROPOSED TRANSACTION
Following the withdrawal of the cautionary announcement on 16 October 2020 whereby negotiations
were placed on hold, the Housatonic Consortium are still not able to travel to South Africa due
to Australian travel restrictions and quarantine requirements. Furthermore, the second
interested party referred to in the trading update issued on 15 December 2020 has withdrawn
from discussions. However, despite this we expect the consortium to resume discussions for the
potential acquisition of Metrofile once travel restrictions have been lifted.
OUTLOOK
The Group has continued to show resilience and positive performance on the back of the improved
operating model. The focus on ramping up operations in the first half of the 2021 financial year
has yielded positive results. Cost reduction initiatives have continued to protect profitability
despite the economic challenges. The Group will continue to focus on maintaining the current
level of profitability, supported mainly by predictable annuity revenue and accelerated adoption
of our digital offerings.
DIVIDEND DECLARATION
Notice is hereby given that an interim gross cash dividend of 7 cents per share in respect of the
period ended 31 December 2020 has been declared payable, from income reserves, to the holders of
ordinary shares recorded in the books of the Company on Thursday, 1 April 2021. The last day to
trade cum-dividend will therefore be Monday, 29 March 2021 and Metrofile shares will trade ex-
dividend from Tuesday, 30 March 2021. Payment of the dividend will be on Tuesday, 6 April 2021. Share
certificates may not be dematerialised or rematerialised from Tuesday, 30 March 2021 (which is ex-
date) to Thursday, 1 April 2021, both days inclusive. Withholding tax on dividends will be
deducted for all shareholders who are not exempt in terms of the legislation at a rate of 20%
which will result in a final net cash dividend of 5.6 cents per share. The Company’s issued share
capital at the period end is 452 649 116 shares and the Company’s tax number is 9375/066/71/0.
This short form is the responsibility of the directors and the information contained herewith has not been
reviewed or reported on by the auditors. The full announcement is published on the Company’s website:
www.metrofilegroup.com and is also accessible via the JSE link:
https://senspdf.jse.co.za/documents/2021/jse/isse/mfl/MFLH1FY21.pdf.
Any investment decisions by investors and/or shareholders should be based on consideration of the full
announcement. Electronic copies of the full announcement may be requested by contacting
Paige Atkins: paige@rspconsulting.co.za.
8 March 2021
DIRECTORS
CS Seabrooke (Chairman)^*, MS Bomela (Deputy Chairman)*, PG Serima (CEO), S Mansingh (CFO), MZ
Abdulla*, P Langeni†*, LE Mthimunye^*, GD Wackrill*, SV Zilwa^*, L Rood (Alternate)^*
^Independent *Non–executive †Lead independent
COMPANY SECRETARY
P Atkins
REGISTERED OFFICE
First Floor, 28 Fricker Road, Illovo, 2196, Gauteng, South Africa
www.metrofilegroup.com
INVESTOR RELATIONS
Anne Dunn: 082 448 2684 anne@annedunn.co.za
SPONSOR
The Standard Bank of South Africa Limited
TRANSFER SECRETARIES
Computershare Investor Services (Pty) Ltd
Rosebank Towers, 15 Biermann Avenue, Rosebank, 2196, Gauteng, South Africa
Date: 08-03-2021 02:05:00
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