Wrap Text
Unaudited Summarised Group Interim Results for the six months ended 31 December 2022
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 2022
SALIENT FEATURES
REVENUE INCREASED BY 19% TO R564 MILLION
EBITDA AND OPERATING PROFIT INCREASED BY 6% AND 5% RESPECTIVELY
INTERIM DIVIDEND PER SHARE WAS MAINTAINED AT 9C
EPS AND HEPS GREW MARGINALLY BY 1% TO 15.0C
PURCHASED 6 542 604 SHARES (R22.6 MILLION) UNDER THE SHARE BUY-BACK PROGRAMME
SUMMARISED FINANCIALS
Unaudited Unaudited
six months six months
ended ended
31 Dec 2022 31 Dec 2021
Revenue (R’000) 564 056 474 289
EBITDA (R’000) 166 028 157 327
EPS (cents 15.0 14.9
HEPS (cents) 15.0 14.9
DPS (cents) 9.0 9.0
Number of shares in issue* 427 157 354 433 699 958
* Net of treasury shares
FINANCIAL REVIEW
REVENUE
Revenue increased by 19% to R564 million (1HFY2022: R474 million). Metrofile concluded the acquisition of
IronTree Internet Services (Pty) Ltd (“IronTree”) in the prior period and this acquisition has now been
included for the full six months under review. Excluding the acquisition related revenue growth of IronTree,
organic revenue increased by 13% primarily as a result of significant growth in digital services. The start
of the current financial year has also seen the gradual return to offices by some of our clients which has
increased the demand for products and services. Furthermore, actions taken in the last quarter of FY22,
including the investment in the go-to-market industry team, has already yielded positive results with growth
in secure storage, digital services and products and solutions. Outside South Africa, Mozambique, Botswana,
Kenya and MRM Middle East traded in line with expectations.
OPERATING PROFIT
Operating profit, before acquisition related costs, grew by 5% to R118 million (1HFY2022: R112 million) as
a result of increased revenue. Operating margin was lower due to additional costs as well as a change in
revenue mix, mainly as a result of lower margin related to image processing. Additional costs were driven
mainly by inflationary pressure, investment in the go-to-market industry team and an increase in IT related
costs following the upgrades to our IT infrastructure and application environment.
CASH AND DEBT
Net finance costs were 16% higher at R27 million (1HFY2022: R23 million) following an increase in interest rates
and net debt. Net debt rose by 10% to R493 million (1HFY2022: R448 million). This was due to the settlement of
the first tranche of the IronTree payment, which became payable on the achievement of the earn-out during 2HFY2022,
higher dividends and an increase in debtors. The increase in debtors related to the higher level of revenue
achieved in the last two months of the period, with average revenue of approximately R100 million per month
achieved.
REVIEW OF OPERATIONS
MRM SOUTH AFRICA
Revenue from MRM South Africa increased by 14% to R303 million (1HFY2022: R265 million) mainly as a result of growth
in image processing, paper services and improved sales volumes of flat boxes. Operating profit grew by 4% to R94
million (1HFY2022: R91 million) as a result of revenue growth and includes the additional costs related to the go-to-
market industry team. Operating margin reduced due to the change in revenue mix, however we anticipate a recovery in
margin by the continued growth in the utilisation of investments made.
MRM REST OF AFRICA
MRM Rest of Africa consists of operations in Kenya, Botswana and Mozambique. Revenue increased by 17% to R52 million
(1HFY2022: R45 million) and operating profit grew by 32% to R13 million (1HFY2022: R10 million). Positive results were
achieved in all territories with growth in net box volumes as well as digital services from existing and new clients.
MRM MIDDLE EAST
MRM Middle East consists of operations in the United Arab Emirates and Oman. This region continued to grow
and expand its digital project pipeline with revenue increasing by 3% to R48 million (1HFY2022: R47 million).
As previously reported, the prior period included once-off billing that has not been repeated in the current
period, which has resulted in a lower comparable operating margin and lower operating profit of 23% to R11
million (1HFY2022: R14 million).
PRODUCTS AND SERVICES SOUTH AFRICA
Our Products and Services South Africa suite of offerings includes Tidy Files, Cleardata, Metrofile VYSION and
IronTree. Overall, revenue increased by 37% to R161 million (1HFY2022: R118 million) with revenue increasing by
12% excluding the previously acquired IronTree. Operating profit grew by 31% to R18 million (1HFY2022: R13
million). Tidy Files achieved improved revenue due to increased demand from our clients, notwithstanding a
challenging operating environment. Productivity was impacted by extended loadshedding schedules implemented
across South Africa, as well as an early factory closure in December due to flooding. Metrofile VYSION, which
was launched 18 months ago, has continued to grow significantly with workflow automation related sales improving
by more than 50%. IronTree continued to grow in line with expectations, with the addition of Sendmarc to its
SecureIT suite of services.
SHARE BUY-BACK PROGRAMME
The Board has authorised a share buy-back programme under the general authority of the Company and we have
purchased 6 542 604 shares (R22 650 310) at an average price of R3.46 per share. The Board considers the value-
add to shareholders of the capital allocation decisions relating to acquisitions, expansion, share buy-backs and
dividends, and the judicious use of available cash and debt resources.
DIVIDEND DECLARATION
The dividend cover policy range of between 1.5x and 2.0x remains in place. The Board has declared an interim
cash dividend maintained at 9 cents per share. Notice is hereby given that an interim gross cash dividend of 9
cents per share in respect of the period ended 31 December 2022 has been declared payable, from income reserves,
to the holders of ordinary shares recorded in the books of the Company on Friday, 31 March 2023. The last day to
trade cum-dividend will therefore be Tuesday, 28 March 2023 and Metrofile shares will trade ex-dividend from
Wednesday, 29 March 2023. Payment of the dividend will be on Monday, 3 April 2023. Share certificates may not be
dematerialised or rematerialised from Wednesday, 29 March 2023 (which is ex-date) to Friday, 31 March 2023, 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 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 (427 157 354 net of treasury shares)and the
Company’s tax number is 9375/066/71/0.
CHANGES TO THE BOARD OF DIRECTORS AND COMPANY SECRETARY
There were no changes to the Board for the six months ended 31 December 2022 or up to the date of this report.
Elmarie Smuts was appointed as the Company Secretary in a permanent capacity, in addition to her role as the
Group Risk Officer, effective 1 November 2022.
OUTLOOK
The expansion of our core capabilities in digital and cloud services has distinguished Metrofile from both
traditional competitors and digital providers in our industry. Continued growth in the revenue contribution
from digital services has validated our strategy of innovating across our core offerings, including cloud
services and workflow automation solutions, to assist our customers in becoming digitally transformed
enterprises. We are transforming our Company and making it digital and cloud ready by pivoting our investments
to strategic growth areas that enable us to focus on accelerated growth opportunities in the market. With an
increased focus to support customers on their digital transformation journey, the Group’s operations expanded
their sales team to include industry experts and streamlined internal operations to offer holistic and
differentiated services in an ever-increasing competitive landscape. Metrofile continues to be well positioned,
capable and ready to be at the core of this exciting journey.
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/2023/jse/isse/mfl/MFLH1FY23.pdf
- The Company’s website at https://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 Elmarie Smuts:
elmaries@metrofileholdings.com and from the sponsor at jsesponsor@standardbank.co.za and will be available for
inspection at Metrofile’s registered office.
6 March 2023
DIRECTORS
P Langeni (Chairman)^*, MS Bomela (Deputy Chairman)*, PG Serima (CEO), S Mansingh (CFO), SV
Zilwa†*, A Khumalo^*, LE Mthimunye^*, CS Seabrooke^*, STM Seopa^*, DL Storom (Alternate)*, L
Rood (Alternate)^*.
^Independent *Non-Executive †Lead Independent
COMPANY SECRETARY
EM Smuts
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: 06-03-2023 09:00:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
