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METROFILE HOLDINGS LIMITED - Unaudited Summarised Group Interim Results For The Six Months Ended 31 December 2019

Release Date: 09/03/2020 13:45
Code(s): MFL     PDF:  
Wrap Text
Unaudited Summarised Group Interim Results
For The Six Months Ended 31 December 2019

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 2019

SALIENT FEATURES
REVENUE UP TO R473M – INCREASED BY 8%
OPERATING PROFIT UP TO R108M – INCREASED BY 12%
HEPS UP TO 12.9c – INCREASED BY 26%
EPS UP TO 12.1c – INCREASED BY 19%
DPS UP TO 6c – INCREASED BY 20%
NET DEBT IMPROVED TO R572M – DECREASED BY 3%

SUMMARISED FINANCIALS
                         Unaudited       Unaudited
                         six months      six months
                         ended           ended
R’000                    31 Dec 2019     31 Dec 2018
Revenue                  472 772         437 680
EBITDA                   150 855         118 534
Operating profit         107 942          96 564
Profit for the period     49 661          40 733
EPS                        12.1c           10.2c
HEPS                       12.9c           10.2c
DPS                            6c              5c
Net debt                 571 880         635 972

INTRODUCTION

Metrofile Group is a leading global records and information management specialist, 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 across South Africa, Kenya, Zambia, Botswana,
Mozambique and the Middle East. Group companies operate from 68 facilities, at 38 locations, covering 118 747
square metres of warehousing space.

Empowerment partner and strategic shareholder, Mineworkers Investment Company, owns 36.56% of
Metrofile’s equity.

FINANCIAL REVIEW

REVENUE

Revenue from continuing operations increased by 8% to R473 million (1H2019: R438 million).

Secure storage contributed 64% to Group revenue and was up 6% year-on-year mainly as a result of increased
box volumes. Closing box volumes for the Group as at 31 December 2019 amounted to 11.3 million (30 June
2019: 11.1 million) as net box volume growth of 1% was achieved for the six-month period. New box volume
intake for the six months increased 5% from new and existing customers and was partially offset following
destructions and withdrawals. Geographical performance in terms of box volume growth resulted in net box
volume growth in South Africa of 1%, Rest of Africa of 5% and the Middle East of 2%.

Digital services contributed 13% to Group revenue and was up 12% year-on-year mainly as a result of an
increase in the number of images processed. Products and solutions and business support services
contributed 17% and 6% respectively to Group revenue. These revenue streams increased 14% and 9%
respectively as an overall improvement in volumes was realised, despite the impact of the challenging
economic conditions.
OPERATING PROFIT AND EBITDA

Operating profit from continuing operations increased by 12% to R108 million (1H2019: R97 million) mainly as a
result of the improved revenue performance as well as tighter cost control. EBITDA from continuing operations
increased by 27% to R151 million (1H2019: R119 million) as a result of improved operational performance as
well as the adoption of IFRS 16 Leases.

CASH AND DEBT

Net finance costs increased by 3% to R35 million (1H2019: R34 million) following the adoption of IFRS 16
Leases. Excluding the impact of the new accounting standard, net finance costs improved by 9% as a result of
lower debt levels. Net debt reduced by 3% to R572 million for the six-month period since 30 June 2019
following improved cash generation and free cash flow (“FCF”). FCF improved 32% to R66 million (1H2019: R50
million) mainly as a result of an improvement in cash from operating activities.

UPDATE RELATING TO THE PROPOSED TRANSACTION

Metrofile shareholders are referred to the cautionary announcement dated 4 March 2020 relating to the
ongoing discussions between the Company and the Housatonic Consortium regarding the potential acquisition of
the entire issued share capital of Metrofile.

The Housatonic Consortium has advised Metrofile that its funding arrangements are near-final, however,
arrangements with a BEE partner are taking longer than expected to finalise. The Housatonic Consortium
expects to finalise arrangements with a BEE partner by 31 March 2020.

Shareholders are advised to continue to exercise caution when dealing in the Company’s securities until a
further announcement is made in this regard.

OUTLOOK

The positive effects of the strategic review and restructuring concluded in the 2019 financial year continued to
yield benefits in the first half of the 2020 financial year. Despite the tough macro-economic conditions, the
Group remains cautiously optimistic that the improved performance will continue in the second half of the
financial year. Secure storage remains core to the business and will continue to be a key focus area along with
enhancing the Group’s digital services.

DIVIDEND DECLARATION

Notice is hereby given that an interim gross cash dividend of 6 cents per share in respect of the period
ended 31 December 2019 has been declared payable, from income reserves, to the holders of ordinary shares
recorded in the books of the Company on Friday, 3 April 2020. The last day to trade cum-dividend will
therefore be Tuesday, 31 March 2020 and Metrofile shares will trade ex-dividend from Wednesday, 1 April
2020. Payment of the dividend will be on Monday, 6 April 2020. Share certificates may not be dematerialised
or rematerialised from Wednesday, 1 April 2020 (which is ex-date) to Friday, 3 April 2020, 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 4.8 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: http://www.metrofilegroup.com and is also accessible via the JSE link:
https://senspdf.jse.co.za/documents/2020/jse/isse/mfl/MFLH1FY20.pdf. Any investment decisions by
investors and/or shareholders should be based on consideration of the full announcement. The full
announcement is also available at our registered offices for inspection, at no charge, during
office hours. Electronic copies of the full announcement may be requested by contacting Paige
Atkins: mailto:paige@rspconsulting.co.za

9 March 2020



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
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

Date: 09-03-2020 01:45:00
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