Metrofile increases dividend after resilient performance


Metrofile increases dividend after resilient performance


Published Date: 2020-09-15 | Source: Stephen Gunnion | Author: Stephen Gunnion

Metrofile increases dividend after resilient performance

The documents storage business, which is the target of a proposed takeover, says it has benefitted from annuity income streams.

Metrofile says its subscription-based business helped it weather the challenges posed by Covid-19 in the final quarter of its financial year. However, other part of its business that don't earn annuity income, like Tidy Files and projects-based assignments such as image processing, came under pressure.

The records management and document storage company, which is the target of a proposed takeover, said it made progress over the year to end-June in addressing key operational areas of its business that would support predictable growth in the future, irrespective of the current impact of the pandemic.

Revenue for the year to end-June decreased by 1% to R903 million due to the impact of the lockdown on its digital services and products and solutions operations. Operating profit from continuing operations fell 3% to R217 million. Finance costs fell 18% to R59 million as it cut net debt by 11% to R524 million. It reported a loss per share of 3.4c due to a R118 million goodwill impairment but a 21% jump in headline earnings per share (HEPS) to 24.8c. Normalised HEPS came in 2% down at 26.8c. It has declared a final dividend of 7c per share, taking its total payout for the year 30% higher to 13c per share.

Earlier this month, the company said the Housatonic Consortium, which made a non-binding R1.5 billion offer for Metrofile in December, would travel to SA to refresh and complete a due diligence investigation and engage the Metrofile board on the proposed deal. However, its executives were waiting for international travel restrictions to be lifted before they could visit.

The company's shares rose 4.8% to R2.40 yesterday.


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