Metrofile H1 HEPS up 22% to 10c
Information and records storage management company Metrofile (MFL) said it increased its interim diluted earnings per share and headline earnings per share by 21.7% to 10 cents from 8.3 cents in 2010.
Revenue increased 14.8% to R252.6 million and EBITDA rose by 19.6% to R81.6 million. Net finance costs reduced by 10.5% in line with the further reduction in debt, despite a higher taxation rate relating to costs on the payment of dividends.
The group announced a 50% increase in its interim dividend to shareholders of 3.0 cents per share from 2.0 cents in the same period last year.
An increase in capex was in line with expectations, largely as a result of the group’s expansion and racking costs of R12.5 million required to service the new CIPC contract which began in January 2011. Metrofile plans capex costs of R58.4 million for the 2012 financial year, of which R49.9 million has been earmarked for new capacity, including additional premises.
Metrofile said its expansion into Africa had been frustrating with numerous factors delaying the commencement of operations in Nigeria. Management, however, says it remains committed to this expansion while managing the risk so as not to negate the continued growth in SA.
Mozambique continues to contribute positively but remains a relatively small market place. Several other African countries remain on the Metrofile radar.
According to Metrofile CEO, Graham Wackrill, improvements in the group’s financial structure and continued strong cash flows of the group enabled it to improve the dividend cover from 4.15 times in the comparative period to 3.33 times, in line with its previously announced strategy.
“We are very pleased to be in a position to increase the payment significantly for the current period, following the payment of our maiden dividend a year ago. Metrofile has enjoyed very strong growth during the last six months and we are confident that we will see this continue.”
“We expect to continue to grow revenue, EBITDA and HEPS in the period ahead, anticipating similar growth to the first half for the year as a whole, with a continued recovery in the economy and further cross-selling opportunities providing a strong platform for growth for the group,” he concluded.
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