| Metrofile Holdings Limited: Annual Financial Results year ended June 2024 |
| RESULTS OVERVIEW: |
- Revenue increased by 1% to R1 141 million as growth in secure storage was offset by a reduction in product sales
- Operating profit decreased by 22% to R200 million and EBITDA decreased by 17% to R287 million – Cash generated from operations increased by 12% to R309 million
- EPS decreased by 88% to 3.9c, HEPS decreased by 49% to 16.5c and NHEPS decreased by 38% to 20.0c
- Dividend per share decreased by 22% to 14c for the year, with a final dividend of 7c declared
- Net debt reduced by 9% to R537 million
- Concluded the final settlement of the remaining 30% of Irontree Internet Services (Pty) Ltd for R70 million
- 1 479 985 shares (R4.4 million) under the share buy-back programme
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| RESULTS REVIEW: |
| Results for the 12 months ended 30 June 2024 were negatively impacted by low volume growth across the business and a challenging trading environment, with revenue marginally increasing by 1% and EBITDA declining by 17% year on year. Pleasingly, cash generation from operations for the year increased by 12% to R309m contributing to a 9% reduction in net debt, excluding lease liabilities. |
| FINANCIAL REVIEW |
| REVENUE |
| Revenue increased by 1% to R1 141 million (2023: R1 134 million), due to price increases offset by lower volume growth. General market conditions were weak. Demand for cloud services remained strong and now contributes 32% (2023: 26%) of our digital services revenue. Confidential destruction gained further traction due to the continued adoption of POPIA legislative requirements and positive results from our customer acquisition strategy. |
| Furthermore, we noted increased office activity as our paper services improved however box volumes remained flat. Gross box volume intake increased by 6% from new and existing clients and was offset by destructions and withdrawals of 6%, with the majority of destructions occurring in the first and fourth quarters of the financial year. |
| Furthermore, we noted increased office activity as our paper services improved however box volumes remained flat. Gross box volume intake increased by 6% from new and existing clients and was offset by destructions and withdrawals of 6%, with the majority of destructions occurring in the first and fourth quarters of the financial year. |
| OPERATING PROFIT: |
| Operating profit, before impairments, retrenchment, and closure costs, reduced by 22% to R200 million (2023: R255 million). This was mainly due to low growth in revenue, inflationary cost pressures, as well as a significant reduction in profit margins in the Middle East. We anticipate an improvement in margin going forward, following cost reduction interventions, particularly in South Africa. |
| CASH AND DEBT: |
| Improvements in working capital resulted in a 12% improvement in cash generated from operations. Net finance costs were 17% higher at R68 million (2023: R58 million) due to net debt and an increase in interest rates. Net debt, including acquisition-related liabilities, reduced by 9% to R537 million (2023: R587 million). During the period, we concluded the payment of the final tranche of R70 million for the IronTree acquisition as a result of significant growth in the business since the acquisition. Interest-bearing liabilities were refinanced during the period following a revised debt facilities agreement, with the new term facilities effective on 31 August 2023. This process has resulted in total debt facilities of R852 million comprising R752 million committed and R100 million uncommitted as of 30 June 2024. |
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Metrofile Holdings Limited |
