Metrofile revenue falls 7% as operational challenges hit profits

Metrofile Holdings Limited reported a 7% decrease in revenue to R1,066 million for the year ended June 30, 2025, primarily due to the exit of Tidy Files' manufacturing operations. Operating profit also saw a 12% decline to R176 million, and headline earnings per share fell by 20% to 13.3 cents. The company noted continued strong growth in secure storage and cloud services, with cloud services now contributing 34% of digital services revenue.

Despite headwinds in the Rest of Africa and the Middle East, the company's MRM South Africa segment showed improved financial performance, with operating profit increasing by 11% to R198 million. However, MRM Rest of Africa experienced a significant 73% drop in operating profit to R11 million, partly due to a prior-year once-off gain and increased setup costs for Cloud Services in Kenya. The Middle East segment incurred an operating loss of R5 million.

Net debt was reduced by 11% to R479 million, attributed to robust cash generation. The board has resolved not to declare a final dividend, resulting in a 71% decrease in the full-year dividend per share. Discussions regarding a potential acquisition of the company by Main Street 2093 (RF) Proprietary Limited are ongoing.