In Metrofile Holdings’ annual 2023 report, its management team celebrated achieving a significant milestone, with turnover in excess of R1 billion for the first time, and has grown its digital footprint to include in Australia, New Zealand and Ireland.
Metrofile provides records and information management services in South Africa (its main market), Kenya, Botswana, Mozambique and the Middle East.
Phumzile Langeni, Metrofile’s chairman, said increasingly many organisations had devoted more resources to expand their digital and technological capabilities and had invested in the digitising of their data to ensure economic viability and to remain sustainably competitive.
“Metrofile is well positioned as a leader in the provision of digital solutions for data preservation, cloud services, disaster recovery and cybersecurity to its growing customer base,” she said.
The introduction of cloud services, as well as content services over the past two years, had enhanced its digital services offering.
Langeni said the global environment for the 2023 financial year continued to be characterised by economic volatility due to rising inflation, higher interest rates, currency fluctuations and continued geopolitical tensions and upheavals, which had impacted businesses and markets around the world.
In South Africa, the deteriorating micro-economic environment, which had been exacerbated by continued load shedding, widening bond spreads and the adverse impact that poor rail and port operations have had on mining, continued to depress the economy.
Despite this Metrofile’s revenue for financial year 2023 increased by 16% to R1.1bn, while the business also recorded improved Ebitda and operating profit performance by 6% compared to the prior year; with headline earnings per share increasing by 5%.
CEO Pfungwa Serima said the group had performed well against the five key priorities for 2023 to ensure a robust and sustainable platform from which to capture opportunities to grow the business.
Firstly, it had met its objective to expand digital content and cloud services, with 44% revenue growth in this area.
Secondly, the group was expanding geographically, leading with its digital services, and had recent success in Australia, New Zealand and Ireland.
Thirdly, adding being a cloud ready provider to its business offerings as well as expanding its services such as digitisation of historical records, data mining, cloud services, software solutions and cybersecurity.
The group has also appointed industry experts.
“Our investment in our go-to-market industry team has led to growth in secure storage, image processing and products and solutions,” Serima said.
Fifth, it aimed to enhance its end-to-end integrated solutions and services.
“We have achieved this by leveraging off our trusted record management solutions. At the same time, we have a heightened focus on our ESG positioning as we promote a paperless environment, recycling and digital services,” he said.
Serima said Metrofile was pleased to announce the successful award of two significant contracts.
The first, valued at R417 million over three years, was in the South African public sector and was currently being contested by one of the unsuccessful bidders. The other was in the United Arab Emirates, to the value of R180m over two years.
“These contracts were subject to the finalisation of various service level agreements and the successful on-boarding of our relevant services, which we anticipate to be the key focus area for the 2024 financial year,” he said.
Looking ahead, Shivan Mansingh, Metrofile’s chief financial officer, said, “Our focus will be on achieving double digit topline organic growth as we change our revenue mix and introduce more digital services.
“We have two large contracts to be on-boarded, and our go-to-market team will work hard to augment our healthy pipeline. Our capital allocation will continue to facilitate growth and transformation. We will consider and evaluate appropriate opportunities in the digital arena to enhance our customer proposition and shareholder value.”
As regards remuneration, both Mansingh and Serima were paid less in 2023 than in 2022. Serima got R10 million from R12.8m in 2022, while Mansingh was paid R5.6m from R6.8m the prior year.
BUSINESS REPORT