Picture: ISTOCK
Picture: ISTOCK

Metrofile’s share price rose 5.7% to R3.70 on Wednesday as the market reacted to the document storage company’s interim results released at 5.45pm on Tuesday.

The group reported nearly 20% growth in interim revenue to R456m for the six months to end-December.

After-tax profit grew 6% to R78m, but the exclusion of a R12.5m gain from the sale of Rainbow Paper Management caused headline earnings per share (HEPS) to decline by 7% to 15.6c. Metrofile maintained its interim dividend at 13c despite the dip in HEPS.

The number of shares in issue was reduced by 1.6% to 416-million in a share buy-back programme.

Acquisitions during the reporting period included Kenyan company G4S Secure Data Solutions for R281m. Metrofile described its new subsidiary as East Africa’s largest records management company.

According to CEO Pfungwa Serima, document management is a growing business despite the world’s move to digital. "Metrofile remains well placed in the forefront of an industry that is evolving rather than shrinking. Metrofile anticipates a stronger second half earnings."