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Audited Summarised Group Results For The 12 Months Ended 30 June 2018
Metrofile Holdings Limited: Incorporated in the Republic of South Africa
(Registration number 1983/012697/06)
Share code: MFL ISIN: ZAE000061727
("Metrofile" or "the Company" or "the group")
AUDITED SUMMARISED GROUP RESULTS
for the 12 months ended 30 June 2018
REVENUE
Up R953.0m
EBIDTA
Up R270.2m
EPS
Down 31.0c
HEPS
Down 29.2c
NHEPS
Up 32.1c
DPS
FOR THE YEAR
Down 21.0c
THE GROUP IN CONTEXT
- Metrofile is Africa's market leader in records and information management, offering a
range of physical storage and digital services, as well as the confidential destruction of
records.
- Founded and listed in South Africa, the Group is growing steadily in the Middle East and
other African countries.
- The Records Management division operates from 52 facilities, at 27 locations, covering
101 309 square metres of warehousing and office space.
- Metrofile is a 57.4% black-owned company. Its empowerment partner and
shareholder of reference, Mineworkers Investment Company ("MIC"), owns 36.95%
of Metrofile's equity.
STRATEGIC SYNOPSIS - EMBRACING THE FUTURE
The world is moving into an ever-digitised phase, presenting unique opportunities for the
Group. Our move into the digital realm, allows Metrofile to offer record and information
management solutions that bridge the divide between legacy storage and new data
management systems. Our records and information prowess spans more than 35 years
and as the world evolves, we are evolving with it, to bring relevant business solutions to our
diverse range of clients
We are well-positioned to bridge the gap between
legacy storage and new data platforms through
leveraging technology within our solutions and taking
it to a wider, agile marketplace.
RESTRUCTURING OUR OPERATING MODEL
We are shifting from a regional management structure towards
an integrated management framework through industry
categorisation and specialisation in both the private and public
sectors. This involves streamlining and increasing the efficiencies
of our operations.
ENHANCING OUR CLIENT RELATIONSHIPS
We are intensifying our client relationships through stepped up
visits and satisfaction surveys to gain insights into improving our
interactions with them.
STRATEGIC ACQUISITION AND EXPANSION
We continue to embark on strategic acquisitions and partnerships
with companies that are positioned to increase our innovation
pipeline and increase our geographical reach.
NIMBLE AND TAILOR-MADE SOLUTIONS
We are segmenting our targeted markets and developing detailed
go-to-market strategies for each. We are also reviewing our
solutions in terms of applicability to our new digital future and value
to clients.
EVOLUTION INTO THE DIGITAL SPACE
We are launching a new incubator developed for Metrofile's
products and services as part of our digital transformation.
OUR PERFORMANCE
- Revenue increased by 23.9% to R953.0 million (2017: R769.2 million)
- EBITDA increased by 9.3% to R270.2 million (2017: R247.3 million)
- EBIT increased by 4.4% to R221.8 million (2017: R212.4 million)
- R80,3 million in capital expenditure was incurred of which R64,5 million
was expansionary capex.
- Metrofile recorded revenue growth of 28.0% from our operations
outside of South Africa, which contributed 11.6% of the total revenue
for the year.
- Acquired 100% interest in Tidy Files (SA) Proprietary Limited.
- Acquired 100% interest in G4S Secure Data (Kenya) Limited.
- Acquired the remaining 30% non-controlling interest in
Cleardata Proprietary Limited.
- Disposed of Rainbow Management Proprietary Limited.
- Invested a 62.5% majority interest in Dexterity Digital Solutions, a
start-up focusing on digital product development in the information and
records management area.
Our acquisitions, disposals and investments form part of our growth
strategy and ensure we are constantly evolving, nimble and adaptive to change
and opportunity.
DIVIDENDS
The Group's net interest-bearing debt amounted to R614.8 million which equates to a Debt: EBITDA ratio of
2.28 times. While the Group was under borrowed, dividends were paid representing a cover ratio of 1,1:1 The
Group is now at the maximum debt capacity ratio acceptable to the Board. As a result, the Board has resolved
to increase the dividend cover for the 2018 financial year to the upper level of the previously announced target
range of 1,25 to 1,5 times. The Board has also resolved that an appropriate normalised cover ratio for future
years will be 2,0 times thereby facilitating capacity to fund new bolt-on acquisitions partially from future
retained earnings.
The dividend for the full year of 21.0 cents per share represents dividend cover of 1,52 times relative to
normalised HEPS (NHEPS).
Notice is given that a final gross cash dividend of 8.0 cents per share in respect of the year ended 30 June 2018
has been declared payable, from income reserves, to the holders of ordinary shares recorded in the books of
the Company on Friday, 5 October 2018. The last day to trade cum-dividend will therefore be Tuesday, 2 October
2018 and Metrofile shares will trade ex-dividend from Wednesday, 3 October 2018. Payment of the dividend
will be on Monday, 8 October 2018. Share certificates may not be dematerialised or re-materialised from
Wednesday, 3 October 2018 (which is ex-date) to Friday, 5 October 2018, 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 6.4 cents per share. The Company's issued share capital at the
period end is 416 164 210 shares and the Company's tax number is 9375/066/71/0.
BASIS OF PREPARATION AND ACCOUNTING POLICIES
The directors take full responsibility for the preparation of these Preliminary Audited Group Results.
The group results have been prepared, under the supervision of Mr MC McGowan, CA(SA). The summarised
financial information has been prepared in accordance with the framework concepts and measurement
and recognition requirements of International Financial Reporting Standards (IFRS), the SAICA Financial
Reporting Guidelines as issued by the Accounting Practices Committee and Financial Reporting
Pronouncements as issued by the Financial Reporting Standards Council, the information as required by
IAS 34: Interim Financial Reporting, the JSE Listings Requirements and the requirements of the Companies
Act of South Africa. The report has been prepared using accounting policies that comply with IFRS and are
consistent with those applied in the consolidated financial statements for the year ended 30 June 2018.
Certain accounting pronouncements became effective during the current financial year; however, these do
not have an impact on either transactions or disclosures.
AUDIT OPINION
The independent auditors, Deloitte & Touche, have issued their unmodified audit opinion, on the consolidated
financial statements for 30 June 2018 year-end, in accordance with International Standards on Auditing.
These summarised consolidated financial statements have been derived from the consolidated financial
statements and are consistent in all material respects, with the consolidated financial statements. A copy of
the unmodified audit report on the summarised consolidated financial statements, the audited consolidated
financial statements and the unmodified audit report thereon are available for inspection at the Company's
registered off ice. The auditor's report does not necessarily report on all the information contained in this
announcement. Shareholders are therefore advised that in order to obtain a full understanding of the nature of
the auditor's engagement, they should obtain a full copy of the auditor's report, together with the accompanying
consolidated financial information from the issuer's registered office. Any reference to future financial
performance included in this announcement, has not been reviewed or reported on by the Company's auditors.
CHANGES TO THE BOARD OF DIRECTORS
Ms Phumzile Langeni was appointed as Lead Independent Director with effect from 10 July 2018. As previously
announced, Mr Zaheer Abdulla, has been appointed as a Non-Executive Director of Metrofile Holdings with
effect from 15 September 2018 in place of Mrs Cynthia Pongweni who will resign from the Board, effective
15 September 2018.
SUMMARISED CONSOLIDATED INCOME STATEMENT
Audited Audited
12 months 12 months
ended ended
R'000 30 June 18 30 June 17
Revenue 952 988 769 239
Earnings before interest, taxation, depreciation and
amortisation (EBITDA) 270 175 247 329
Depreciation (40 450) (34 917)
Operating profit 229 725 212 412
Acquisition-related expenses (15 495) -
Profit on disposal of business 7 592 -
Earnings before net finance costs 221 822 212 412
Net finance costs (46 241) (18 056)
Finance income 1 502 3 649
Finance costs (47 743) (21 705)
Profit before tax 175 581 194 356
Taxation (50 288) (54 979)
Profit for the year 125 293 139 377
Attributable to:
Owners of the parent 129 052 135 019
Non-controlling interests (3 759) 4 358
Profit for the year 125 293 139 377
Further information
Number of ordinary shares in issue (thousands) 416 164 421 103
Weighted average number of ordinary shares in issue (thousands) 417 233 424 554
Basic earnings per ordinary share
Basic earnings per ordinary share (cents) 31.0 31.8
Diluted earnings per ordinary share
Diluted earnings per ordinary share (cents) 29.2 31.8
Headline earnings per ordinary share
Headline earnings per ordinary share (cents) 29.2 31.8
Dividend per ordinary share
Interim dividend per ordinary share - paid (cents) 13.0 13.0
Final dividend per ordinary share - proposed/paid (cents) 8.0 17.0
SUMMARISED SEGMENTAL INFORMATION
Revenue EBITDA
Audited Audited Audited Audited
12 months 12 months 12 months 12 months
ended ended ended ended
R'000 30 June 18 30 June 17 30 June 18 30 June 17
Records Management 671 673 629 701 162 191 165 304
Property Companies (Occupied by
Records Management businesses) 73 853 66 964 73 853 66 964
CSX Customer Services 79 457 69 337 (1 514) (2 362)
Tidy Files 158 928 - 19 656 -
Other 55 014 85 983 15 989 17 423
Intergroup (85 937) (82 746) - -
Total 952 988 769 239 270 175 247 329
South African operations 842 238 682 726 254 931 235 635
Non-South African operations 110 750 86 513 15 244 11 694
Operating profit Tangible assets
Audited Audited Audited Audited
12 months 12 months 12 months 12 months
ended ended ended ended
ended ended ended ended
R'000 30 June 18 30 June 17 30 June 18 30 June 17
Records Management 134 194 138 589 411 637 337 861
Property Companies (Occupied by
Records Management businesses) 73 853 66 964 343 971 318 151
CSX Customer Services (2 794) (3 439) 37 453 32 428
Tidy Files 14 236 - 41 984 -
Other 10 236 10 298 58 131 62 046
Total 229 725 212 412 893 176 750 486
South African operations 220 464 205 407 772 960 674 039
Non-South African operations 9 261 7 005 120 216 76 447
"Records Management" represents the global document storage and management and scanning business units which are
managed and operated geographically.
"Other" includes Metrofile Holdings, Rainbow Paper Management, Global Continuity and Cleardata.
SUMMARISED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Total equity
Share Share Accumulated Other before minority
capital premium profits/(losses) reserves apportionment Non-controlling Total
Balance at 30 June 2016 2 625 579 359 50 046 11 367 643 397 16 943 660 340
Purchase of Treasury Shares (58 732) (58 732) (58 732)
Issue of Ordinary Shares 50 39 184 39 234 39 234
IFRS 2 equity reserve relating to share schemes 6 198 6 198 6 198
Share scheme settlement (2 797) (2 797) (2 797)
Reversal of prior year non-controlling interest and loss of joint venture 731 731 1 700 2 431
Minority contribution on acquisition of subsidiary (1 016) (1 016) (7 724) (8 740)
Dividends declared (136 230) (136 230) (136 230)
Total comprehensive income for the year ended 30 June 2017 135 019 (2 813) 132 206 2 107 134 313
Balance at 30 June 2017 2 675 559 811 49 566 11 955 624 007 23 636 647 643
Purchase of Treasury Shares (19 937) (19 937) (19 937)
IFRS 2 equity reserve relating to share schemes 5 076 5 076 5 076
Share scheme settlement (6 498) (6 498) (6 498)
Purchase of remaining non-controlling interest of subsidiary 2 886 2 886
Dividends declared (125 979) (125 979) (125 979)
Total comprehensive income for the year ended 30 June 2018 129 052 5 417 134 469 (2 742) 131 727
Balance at 30 June 2018 2 675 539 874 51 623 15 950 610 122 13 170 623 292
SUMMARISED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Audited Audited
12 months 12 months
ended ended
R'000 30 June 18 30 June 17
Profit for the period 125 293 139 377
Other comprehensive income for the period net of tax* 6 434 (5 064)
Currency movement on translation of foreign subsidiary 6 434 (5 064)
Total comprehensive income for the period 131 727 134 313
Attributable to:
Owners of the parent 134 469 132 206
Non-controlling interests (2 742) 2 107
* All items will subsequently be reclassified to profit and loss.
SUMMARISED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Audited Audited
as at as at
R'000 Note 30 June 18 30 June 17
ASSETS
Non-current assets 1 138 666 769 061
Property 1 359 213 331 556
Plant and equipment 230 605 206 547
Goodwill 527 621 216 938
Investment 9 353 7 739
Long-term receivable 2 419 375
Deferred tax asset 9 455 5 906
Current assets 300 939 212 009
Inventories 34 747 19 068
Trade receivables 184 726 134 582
Other receivables 29 135 30 493
Bank balances 52 331 27 866
Total assets 1 439 605 981 070
EQUITY AND LIABILITIES
Equity and reserves 623 292 647 643
Equity attributable to owners of the parent 610 122 624 007
Non-controlling interests 13 170 23 636
Non-current liabilities 622 985 181 978
Interest-bearing liabilities 597 118 156 904
Deferred taxation liability 25 867 25 074
Current liabilities 193 328 151 449
Trade and other payables 101 765 73 761
Deferred revenue 13 661 12 968
Bank overdraft 3 288 3 273
Provisions 4 093 2 351
Taxation 3 787 2 814
Interest-bearing liabilities 66 734 56 282
Total equity and liabilities 1 439 605 981 070
Note:
1. The majority of the group's properties have been pledged as security against the group's debt facilities.
Christopher Seabrooke Pfungwa Serima
Non-executive Chairman Group Chief Executive Officer
Senderwood
10 September 2018
SUMMARISED CONSOLIDATED STATEMENT OF CASH FLOWS
Audited Audited
12 months 12 months
ended ended
R'000 30 June 18 30 June 17
Cash generated from operations
before net working capital changes 255 577 251 620
(Increase)/decrease in net working capital (24 594) 24 568
Cash generated from operations 230 983 276 188
Net finance costs paid (46 241) (18 056)
Normal taxation paid (51 361) (60 191)
Net cash inflow from operating activities 133 381 197 941
Net cash outflow from investing activities:
Investment in property: expansion (26 167) (37 669)
Investment in plant and equipment: expansion (38 356) (36 398)
Investment in plant and equipment: replacement (15 818) (5 832)
Proceeds on disposal of property, plant and equipment 13 623 1 326
Effects of foreign currency differences on fixed assets (2 598) 1 827
Acquisition of investment in unlisted associate and joint venture - (7 259)
Increase in loans to associate company (1 500) -
Acquisition of subsidiaries (335 516) -
Proceeds on disposal of subsidiary 12 235 -
Net cash inflow/(outflow) from financing activities:
Issue of shares in terms of vendor placements - 39 234
Purchase of Treasury Shares (19 937) (58 732)
Dividends declared (125 682) (135 900)
Loans repaid (14 147) (34 317)
Loans drawn down 444 932 75 000
Net increase (decrease) in cash and cash equivalents 24 450 (779)
Cash and cash equivalents at the beginning of the year 24 593 25 372
Cash and cash equivalents at the end of the year 49 043 24 593
Represented by:
Bank balances 52 331 27 866
Bank overdrafts (3 288) (3 273)
RECONCILIATION OF HEADLINE EARNINGS
Audited Audited
12 months 12 months
ended ended
R'000 30 June 18 30 June 17
Profit attributable to owners of the parent 129 052 135 019
Profit on disposal of subsidiary (7 592) -
Loss/(profit) on disposal of plant and equipment 48 (132)
Tax effect of above items 194 314
Headline earnings 121 702 135 201
Headline earning per ordinary share (cents) 29.2 31.8
RECONCILIATION OF NORMALISED EARNINGS
Audited Audited
12 months 12 months
ended ended
R'000 30 June 18 30 June 17
Headline earnings for purposes of headlines earnings per share 121 702 135 201
Adjusted for after tax:
Acquisition-related costs 12 024 -
Normalised headline earnings for purposes of normalised
headline earnings per share 133 726 135 201
Normalised headline earnings per share ("NHEPS") (cents) 32.1 31.8
Sponsor: The Standard Bank of South Africa Limited
Transfer secretaries: Computershare Investor Services (Pty) Limited
Rosebank Towers, 15 Biermann Avenue, Rosebank 2196
Directors: CS Seabrooke^* (Chairman), MS Bomela* (Deputy Chairman),
PG Serima (CEO), MC McGowan (CFO), P Langeni†*, CN Pongweni*,
L Mthimunye-Bakoro*, GD Wackrill*, SV Zilwa^*
Lead independent^Independent*Non-executive
†
Company Secretary: P Atkins
CORPORATE INFORMATION
Registered office: 41 Wordsworth Avenue Senderwood Bedfordview 2007
www.metrofileholdings.com
Date: 10/09/2018 04:55:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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