Filing away returns
TYPICALLY IN the stockmarket, investors look for exciting but boring quality businesses that can deliver top returns, and Metrofile is one of those. Recent results for the year ending June 2013 showed revenue up 13% and HEPS +17%, with the full-year dividend up 47%.
The Metrofile business model is simple – it stores documents for companies that are required by legislation to keep various documents for a number of years, in other words the business model is solid – its clients must store the documents and Metrofile has the majority market share in this space. Further, a company is not going to just let anyone store its important documents, and Metrofile has already built a reputation in this sector.
The company is also expanding into Africa as it follows existing clients that have asked it to provide its services in other countries.
With low levels of debt, strong moats to protect the business and a cautious African expansion strategy they are unlikely to shoot the lights out but they will deliver consistent profits.