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JSE-listed Metrofile Holdings has reported positive growth results for the six months ended 31 December, 2016. In its first set of non-normalised results in three years, Metrofile, a market leader in records and information management, has posted increased revenue, earnings per share and positive cash generation from operations.
Pfungwa Serima, Chief Executive Officer of Metrofile Holdings Limited, says that despite the adverse impact of weak economic conditions, Metrofile is growing steadily while expanding its base, refocusing businesses and implementing several growth initiatives: “We have reported positively in South Africa and recorded double-digit revenue contributions to the Group from operations in the rest of Africa and the Middle East. We will continue to seek growth opportunities and pursue strategic acquisitions in targeted geographies.”
Revenue increased by 1,6% to R380,7 million, headline earnings increased by 3,3% to R70,8 million. Both headline earnings per share (“HEPS”) and basic earnings per share (“EPS”) increased by 3,7% to 16,7 cents. Cash generated by operations increased by 21,9%.
R41,3 million in capital expenditure was incurred of which R39,6 million was utilised primarily for the expansion and upgrading of existing infrastructure. The group’s net interest bearing debt amounted to R230,7 million at the period end, which equates to an annualised Debt: EBITDA ratio of approximately 0,9 times.
Supporting its focus on Africa, Metrofile has appointed an executive to oversee the operations outside of South Africa: “This appointment will assist us to continue our expansion and growth into the rest of Africa, as well as other emerging markets,” says Serima.
Metrofile’s organic growth will come from widening its customer base in South Africa. This will be supported by a broader offering of products and services: “We are particularly excited about digitisation and will be launching digitally-focused products and solutions. Metrofile is at the forefront of an industry that is evolving as opposed to shrinking.” He says that as the value of transforming raw data into usable information is recognised and becomes widespread, the wealth of data that Metrofile stores or digitises is increasingly becoming a sought after resource.
The growth strategy will be further underpinned by rolling out best practices across the group; re-inventing and enhancing services based on shifting customer needs; and bringing in new or outsource partners in complementary niches.
Serima is confident in the Group’s growth and expansion plans: “Metrofile is well positioned to grow its existing businesses and to expand into African and Middle East markets. We have a strong foothold and together with our positive interim results, Metrofile will continue to enhance its standing as a market leader.”