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Annual Financial Results for the year ended 30 June 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”)
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 30 JUNE 2021
SALIENT FEATURES
REVENUE INCREASED BY 3% TO R933 MILLION
OPERATING PROFIT INCREASED 11% TO R241 MILLION
GROUP HEPS INCREASED 28% TO 31.8C
NET DEBT IMPROVED BY 17% TO R434 MILLION
FREE CASH FLOW INCREASED BY 42% TO R184 MILLION
FINANCIAL REVIEW
REVENUE
Revenue increased by 3% to R933 million (FY2020: R903 million). Secure storage contributed 62% to Group
revenue and was marginally down 2% year-on-year mainly as a result of a reduction in service-related revenue
such as handling fees and transport costs. This was partially offset by an improvement in core storage
related revenue, as an improved price mix was achieved during the period. New box volume intake increased
8%, from new and existing customers and was offset by destructions and withdrawals, with closing box volumes
remaining at 11.1 million at 30 June 2021. Geographic performance in terms of box volume growth resulted in
a marginal decline in net box volumes in South Africa of 1%, however we achieved improved net box growth in
Rest of Africa of 4% and the Middle East of 46%. Digital services contributed 16% to Group revenue and was
up 23% year-on-year mainly as a result of an increase in digital work flow solutions and the number of
images processed. The increase was primarily driven by additional digital work performed in the Middle East
as well as a positive contribution from the newly launched Metrofile Vysion. Metrofile Vysion provides
digital work flow solutions and has enhanced our core capabilities in providing value to our customers.
Products and solutions and business support services contributed 16% and 6% respectively to Group revenue.
These revenue streams recorded increased revenues of 10% and 1% respectively as an overall improvement in
volumes was realised, despite the impact of the challenging economic conditions.
OPERATING PROFIT AND EBITDA
Operating profit increased by 11% to R241 million (FY2020: R217 million) mainly as a result of the
improved revenue and cost reduction measures. EBITDA rose by 7% to R323 million (FY2020: R302 million) due
to improved operational performance.
CASH AND DEBT
Free cash flow increased by 42% to R184 million (FY2020: R130 million) due to improvements in working
capital and a reduction in capital expenditure following enhanced focus on capital allocation. Net finance
costs decreased significantly by 24% to R49 million (FY2020: R65 million) following the reduction in net
debt of 17% to R434 million (FY2020: R523 million).
REVIEW OF OPERATIONS
MRM SOUTH AFRICA
Operating profit increased by 3% to R214 million (FY2020: R207 million) as a result of a reduction in cost as
well as revenue increasing by 1% to R549 million (FY2020: R543 million). The rise in revenue was as a result
of a 3% growth in core storage, digital work flow solutions and scanning revenue, which was partially offset
by a reduction in box service related revenue. New box volume intake is expected to increase, whilst we seek
to improve efficiencies in our warehouses. Key focus areas centre around the operationalisation of the
digital services pipeline and key projects.
MRM REST OF AFRICA
MRM Rest of Africa consists of operations in Kenya, Botswana and Mozambique. Improved trading conditions
positively impacted operating profit which increased by 15% to R35 million (FY2020: R30 million), despite
a decrease in revenue of 6% to R100 million (FY2020: R106 million) due to the disposal of the Zambian
business and closure of the Nigerian business in the prior year. Net box volume growth is expected to
continue going forward, particularly in the greater East African region.
MRM MIDDLE EAST
MRM Middle East consists of operations in the United Arab Emirates and Oman. Trading conditions have been
positive in the Middle East, with a focus on materialising key digital projects as well as securing a long
term pipeline of projects. Revenue improved by 42% to R77 million (FY2020: R55 million) and operating
profit rose by 553% to R13 million (FY2020: R2 million) following the improved pipeline,
operationalisation of key projects as well as higher box volumes.
PRODUCTS AND SERVICES SOUTH AFRICA
Products and Services South Africa consists of Tidy Files, Cleardata and Global Continuity. Operating
profit increased by 120% to R17 million (FY2020: R8 million), due to significant cost reduction
initiatives implemented as a result of the current environment. Trading conditions in South Africa have
been tough during the COVID-19 lockdown restrictions and the operating market has seen a slow improvement
out of lockdown with revenue increasing by 4% to R207 million (FY2020: R200 million).
REPORT OF THE INDEPENDENT AUDITORS
The summarised consolidated financial statements for the year ended 30 June 2021 have been audited by
Deloitte & Touche, who expressed an unmodified opinion thereon. The auditor also expressed an unmodified
opinion on the annual consolidated financial statements from which the summarised consolidated financial
statements were derived. The annual consolidated financial statements and auditor’s report, including key
audit matters, are available on the Company’s website
https://www.metrofilegroup.com/investor-relations/.
FINAL DIVIDEND
The Board has resolved to declare a final cash dividend of 8 cents per share.
Notice is hereby given that an interim gross cash dividend of 8 cents per share in respect of the year ended
30 June 2021 has been declared payable, from income reserves, to the holders of ordinary shares recorded in
the books of the Company on Friday, 1 October 2021. The last day to trade cum-dividend will therefore be
Tuesday, 28 September 2021 and Metrofile shares will trade ex-dividend from Wednesday, 29 September 2021.
Payment of the dividend will be on Monday, 4 October 2021. Share certificates may not be dematerialised or
rematerialised from Wednesday, 29 September 2021 (which is ex-date) to Friday, 1 October 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 6.4 cents per share. The
Company’s issued share capital at the period end is 433 699 958 shares and the Company’s tax number is
9375/066/71/0.
CHANGES TO THE BOARD OF DIRECTORS
Mr DL Storom was appointed alternate to Mr MZ Abdulla, effective 26 March 2021. There were no other
changes to the Board for the year ended 30 June 2021 or up to the date of this report. Shareholders are
advised of the changes to the Board and board committees effective after the date of this report being 30
September 2021, as published on SENS on 14 July 2021.
UPDATE RELATING TO PREVIOUS EXPRESSION OF INTEREST (EOI) TO BID FOR METROFILE
Shareholders were advised in December 2019 that Housatonic had submitted an EOI to potentially offer
330 cents per share to Metrofile shareholders and delist Metrofile. The process was stalled due to the
COVID-19 lockdowns in March 2020, and placed completely on hold on 16 October 2020 when Metrofile withdrew
its cautionary announcement. There have been no further substantive interactions with Housatonic or with
other potential bidders and the Board regards the process as terminated at the present time.
OUTLOOK
Going forward, 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 target gearing levels now achieved and cost reduction initiatives ensuring
a more efficient structure, appropriate levels of capital allocation will now shift in support of
consolidating our market position in information storage and accelerating growth in information management.
We began delivering valuable solutions in these areas over the past year and we strongly believe we have a
solid foundation to fuel growth in the digital space. Predictable annuity based revenue will continue to be
the key characteristic in both information storage and information management service offerings.
Any reference to future financial performance included in this announcement has not been reviewed or
reported on by the Company’s auditors.
Metrofile will host a webcast and conference call on the financial results at 10:30 on Wednesday
15 September 2021.
Registration for the webcast: https://78449.themediaframe.com/links/metrofile210915.html
Registration for the conference call:
https://services.choruscall.za.com/DiamondPassRegistration/register?confirmationNumber=5401762&linkSecurit
yString=9168e54b4
The presentation will also be available on the Group’s website: www.metrofilegroup.com
This shortform announcement is the responsibility of the directors and is only a summary of the
information in the full audited announcement and does not contain full or complete details. The full
audited announcement is published on:
– The JSE website at https://senspdf.jse.co.za/documents/2021/jse/isse/mfl/MFLFY21.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 audited
announcement. Electronic copies may be requested from Paige Atkins: paige@rspconsulting.co.za.
13 September 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)^*,
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.metrofilegroup.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
anne@anedunn.co.za
Date: 13-09-2021 08:00:00
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