Metrofile’s annual headline earnings are expected to slump as much as 52%, but the document and storage management specialist says prospects for a recovery in earnings in the 2025 financial year are good.
The group expects to report headline earnings per share for the year ended June of 15.5c-19c, 41%-52% lower than a year ago.
Ebitda is expected to be 12%-17% lower at between R285,000-R305,000.
The group’s net debt is expected to be between R530,000 and R550,000, a reduction of 6%-10%.
The weaker results for the year were a result of lower-than-expected volumes in the group’s physical storage and filing operations in SA, specific challenges in its local scanning centres, delays in the implementation of contested tender wins, margin pressure in the Middle East operations and high interest rates.
“Prospects for a recovery in earnings in the coming financial year are good with improved customer and service strategies and cost reduction programmes already showing results, and further debt reduction expected,” it said.
Subject to board approval, Metrofile anticipates a total dividend for the year of 14c compared with 18c in the previous year.
Business Day reported in July that Justice Tootla had resigned as MD of Metrofile’s SA unit.
The company said Tootla had stepped down from his role with effect from July 31. Shivan Mansingh, the group’s CFO, will caretake the role, overseeing the day-to-day operations of MRM SA on an interim basis until a suitable replacement has been identified.
Valued at just more than R1bn on the JSE, the group operates from 70 facilities and provides records and information management services in SA, Kenya, Botswana, Mozambique and the Middle East, with SA accounting for more than half of its revenue.
In early trade on the JSE, the company’s share price was down almost 3% at R2.30.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.