Wrap Text
Unaudited Summarised Group Interim Results
for the six months ended 31 December 2021
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 2021
SALIENT FEATURES
REVENUE INCREASED BY 4% TO R474 MILLION
EBITDA INCREASED BY 1% TO R157 MILLION
OPERATING PROFIT DECREASED BY 2% TO R112 MILLION
NET DEBT REDUCED BY 5% TO R448 MILLION
EPS INCREASED BY 1% TO 14.9C
HEPS INCREASED BY 1% TO 14.9C
DPS INCREASED BY 29% TO 9C
SUMMARISED FINANCIALS
Unaudited Unaudited
six months six months
ended ended %
R’000 31 Dec 2021 31 Dec 2020 change
Revenue 474 289 454 498 4%
EBITDA 157 327 155 074 1%
Operating profit 112 356 114 179 (2%)
Profit for the period 68 208 65 300 4%
EPS (cents) 14.9 14.8 1%
HEPS (cents) 14.9 14.8 1%
DPS (cents) 9.0 7.0 29%
Net debt 447 570 472 203 5%
INTRODUCTION
Metrofile has an established reputation of being a leading records and information management specialist to
organisations of all sizes and sectors across South Africa, Kenya, Botswana, Mozambique and the Middle East for
almost four decades. We operate from 68 facilities at 36 locations covering 117 411 square meters of warehousing
space.
Metrofile’s services assist clients in structuring, managing, and accessing their information in any format,
in any location, at any given time. Our clients are guided to ensure that adherence to all legislative
requirements is met and that their most valuable asset, their information, is protected.
we have deepened our digital offerings through the acquisition of IronTree, which is a leading provider of data
management services including cloud backup, disaster recovery and specialised hosting in a private cloud.
IronTree also offers cybercrime and ransomware prevention, ongoing privacy law compliance management and
business continuity planning services.
Empowerment partner and strategic shareholder, Mineworkers Investment Company, owns 38.16% of Metrofile’s
equity.
FINANCIAL REVIEW
REVENUE
Revenue increased by 4% to R474 million (1HFY2021: R455 million).
Despite unforeseen events that affected two significant operating regions during the period, namely South
Africa and Kenya, we have had a positive start to the year. In South Africa, social unrest during July
2021 impacted our first quarter results as two of our regions, Gauteng and KwaZulu Natal, were affected.
Fortunately, our warehouses were not damaged in the unrest, however, several image processing projects
were put on hold while we incurred the relative cost for most of the first quarter. Our box int ake for
the region was also impacted as collections were put on hold, particularly during July 2021. During the
first quarter we experienced destructions of higher priced boxes from various sectors following the
implementation of POPIA. In the second quarter there was an increase in box intake and a reduction in
destructions, however local government elections impacted the timing of various government related
projects, which we expect to conclude in the second half of the financial year.
MRM Middle East has demonstrated significant growth over the past 18 months and is now our largest region
outside of South Africa for both revenue and operating profit contribution. The addition of IronTree to the
Group will enhance our core capabilities in providing value-add services in virtual storage and information
risk management.
Secure storage contributed 58% to Group revenue and was down 5% year-on-year due to a 5% reduction in paper
services and paper storage being flat year-on-year. Closing box volumes for the Group as at 31 December 2021
were 11.3 million (30 June 2021: 11.1 million) as net box volume increased by 1% for the six-month period. New
box volume intake for the six months increased 3% from new and existing clients and was offset following
destructions and withdrawals. Net box volumes grew in all territories with South Africa growing by 0.3%, Rest
of Africa growing by 3% and the Middle East growing by 2%.
Digital services contributed 20% to Group revenue and was up 43% year-on-year mainly as a result of an
increase in digital projects in South Africa as well as an increase in digitisation activities in the Middle
East. Digital services is now our second largest revenue stream contributor and growth over the past 18
months has demonstrated the effect of the Group’s introduction of relevant digital service offerings.
Currently digital services is more project orientated and we expect growth in the project pipeline to be
reflective of global digitisation trends, however we are currently working towards building a strong digital
annuity base.
Products and solutions decreased by 7% due to local challenges that impacted demand for archiving products,
however business support services grew 35%, mainly as a result of increased demand in confidential
destruction. Products and solutions and business support services contributed 14% and 8% respectively to
Group revenue.
OPERATING PROFIT AND EBITDA
Operating profit before acquisition relate costs decreased by 2% to R112 million (1HFY2021: R114 million) mainly
as a result of a decline in higher margin paper services’ activities, offset by increased digital services.
EBITDA increased by 1% to R157 million (1HFY2021: R155 million).
CASH AND DEBT
Net finance costs decreased by 11% to R23 million (1HFY2021: R26 million). Excluding the impact of IFRS 16,
net finance costs reduced by 15% as a result of lower debt levels. Net debt reduced by 5% to R448 million
for the 12 month period since 31 December 2020 despite the new acquisition in 1HFY2022.
OUTLOOK
The contribution of digital services has now exceeded 20% of revenue. We anticipate we will achieve growth by
extending and defending our market position in the information storage space, as well as scaling our position
in information management through growing our digital services offerings. With our current gearing levels, we
will continue to focus on appropriate levels of capital allocation, improving efficiencies and integrating our
services to provide enhanced value to our clients. Predictable annuity-based revenue will continue to be the
key characteristic in both information storage and information management service offerings. Since the
acquisition of IronTree, we have experienced a positive response from our clients. Furthermore, we expect
an increase in office activity due to less restrictive lockdown measures and an improvement in performance
in the second half of the financial year.
DIVIDEND DECLARATION
The Board has reviewed the dividend policy in light of Metrofile’s healthy cash generation and reduced net
debt levels and has resolved to update the dividend cover policy to a range of between 1.5x and 2.0x. Notice
is hereby given that an interim gross cash dividend of 9 cents per share in respect of the period ended
31 December 2021 has been declared payable, from income reserves, to the holders of ordinary shares recorded
in the books of the Company on Friday, 1 April 2022. The last day to trade cum-dividend will therefore be
Tuesday, 29 March 2022 and Metrofile shares will trade ex-dividend from Wednesday, 30 March 2022. Payment
of the dividend will be on Monday, 4 April 2022. Share certificates may not be dematerialised or
rematerialised from Wednesday, 30 March 2022 (which is ex-date) to Friday, 1 April 2022, 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 7.2 cents per share. The
Company’s issued share capital at the end of the period is 433 699 958 shares and the Company’s tax number
is 9375/066/71/0.
This shortform announcement is the responsibility of the directors and is only a summary of the
information in the full announcement. The information contained herewith has not been reviewed
or reported on by the auditors. The full announcement is published on:
The JSE website at https://senspdf.jse.co.za/documents/2022/jse/isse/mfl/MFLH1FY22.pdf
The Company’s website at http://www.metrofilegroup.com/investor-relations/
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: mailto:paige@rspconsulting.co.za, and will be available for inspection at
Metrofile’s registered office.
7 March 2022
DIRECTORS
P Langeni (Chairman)^*, MS Bomela (Deputy Chairman)*, PG Serima (CEO), S Mansingh (CFO), SV
Zilwa†*, MZ Abdulla*, A Khumalo^*, LE Mthimunye^*, CS Seabrooke^*, STM Seopa^*, L Rood
(Alternate)^*, DL Storom (Alternate)*
^Independent *Non-Executive †Lead Independent
COMPANY SECRETARY
P Atkins
REGISTERED OFFICE
First Floor, 28 Fricker Road, Illovo, 2196, Gauteng, South Africa
www.metrofile.com
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
INVESTOR RELATIONS
Anne Dunn: 082 448 2684
mailto:anne@anedunn.co.za
Date: 07-03-2022 07:30:00
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