Metrofile posts strong FY results amid plans to expand - CNBC Africa

Metrofile posts strong FY results amid plans to expand

Southern Africa

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“Generally it was a reasonable year. Obviously the economy was not the best but our records management division, which is the biggest part of Metrofile, had double digit growth in all of its sectors so that’s been great. We had one or two divisions that didn’t perform,” Metrofile CEO Graham Wackrill told CNBC Africa on Tuesday.

“CSX, the one division, had some issues with government tenders, which were delayed. From a Rainbow Paper point of view, the world pulp paper price had decreased. Their volumes have increased over the past five years but the pulp price has decreased.”

Metrofile reported a 17 per cent increase in full year headline earnings per share to 25.5 cents as well as an increase in revenue by 13 per cent to 590.2 million rand. The company’s financial year dividend was also up 47 per cent to 11 cents.

Metrofile’s divisions include Metrofile Records Management, CSX Customer Services, Rainbow Paper Management and Cleardata.  

Despite a tough global economic climate, the records management division’s revenue increased to 476.6 million rand from the previous year’s 416.2 million rand.

“Everybody has to store records, and I think records and management thereof is becoming more important in terms of compliance and things around that. But the other divisions, where people have discretionary spend in the CSX division, when you are buying capital equipment you’re impacted by the exchange rate, by people not getting their orders and tenders through,” Wackrill explained.

“From a Rainbow Paper point of view, the market has been saturated with paper, with pulp, and those things impacted the business. But the records management, everybody has to store records, have to manage them for compliancy.”

Metrofile also offers paper shedding services for confidential documents, which was one of the services that were not vulnerable to the difficult global economic climate.

Metrofile’s other services include active records management, image processing, vault and online data backup and archive storage management. The company operates from 26 facilities and currently manages 21 billion client records.

The company has also expanded its African footprint into Nigeria, which Wackrill explained still had an underdeveloped records management industry, therefore providing big growth potential for their business.

 “We’ve targeted South African companies that have gone into Africa, from the banking groups, from the retail groups. They understand Metrofile, and it is a lot easier for them to put forward Metrofile in Lagos or somewhere else because they are using us here in South Africa,” he said. 

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