Metrofile earnings boosted by insurance proceeds - CNBC Africa

Metrofile earnings boosted by insurance proceeds

Earnings

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Metrofile is a physical and digital records management company. PHOTOS: Cleardata.co.za/Wikipedia

For the year ended 30 June 2014, revenue rose by 14.4 per cent to 675.3 million rand while earnings before interest, taxes, depreciation and amortization (EBITDA) grew by 34.9 per cent to 252.9 million rand.  

“The results are however exaggerated due the insurance proceeds in respect of the fire experienced, in October 2013, by the Metrofile Records Management business,” said the company in a statement.

(WATCH VIDEO: Arson suspected in Metrofile fire)

[DATA MFL:Metrofile Holdings Limited] is a physical and digital records management company with locations across Africa such as South Africa, Mozambique and Nigeria.

The group reported normalised revenue of 632.5 million rand, a 7.2 per cent increase while normalised EBITDA rose by 13 per cent to 212 million rand.

Diluted earnings per share (EPS) and headline earnings per share (HEPS) increased by 44 per cent and 34.9 per cent respectively to 36.3 cents and 34.4 cents.

(READ MORE: Metrofile posts strong FY results amid plans to expand)

A final gross cash dividend of eight cents per share was declared.

The company said that its Records Management division did not meet expectations for the period due to the completion of scanning projects and the lack of replacement thereof which gave rise to structural changes in its Johannesburg branches. The overall state of the South African econoy also impacted the division.

Cleardata, a Metrofile subsidiary that specialises in paper shredding and recycling, experienced strong growth due to an increase in demand for confidential destruction services while its Rainbow Paper Management business performed well with the introduction of exports.

All three divisions are set to grow due to the introduction of the Protection of Personal Information Act in South Africa at the end of 2013.

On the other hand, the group’s CSX Customer Services unit, a business solutions provider, reported weak earnings.  Metrofile is confident however that the business will perform well in 2015 due to recently secured contracts across Africa.

The group’s Mozambican business delivered a strong performance while its Nigerian division, now fully operational, reported losses for its first year.

(WATCH VIDEO: Metrofile expands into Nigeria)

Metrofile said that it will continue to embark on an expansion strategy, as demand from both existing and new customers for information management services continues to grow in Africa and the Middle East.

(WATCH VIDEO: Metrofile - Hot or Not )

“Several new offerings, the securing of contracts as well as the African and Middle East expansions have Metrofile well positioned for the year ahead. Taking into account the fact that the group has received an upfront payment for the next 27 months in respect of business interruption insurance proceeds it is expected that the group will see a continuation of its growth in Normalised revenue, Normalised EBITDA, Normalised earnings and dividends in year ahead,” concluded the statement.

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