By Ross Kelly
SYDNEY--Recall Ltd. (REC.AU), the document management company
spun out of Brambles Ltd. (BXB.AU) in December, posted a small fall
in annual profit because of foreign exchange losses and lower
earnings at a document destruction unit.
Recall's net profit for the year through June fell 3% to 42
million Australian dollars (US$39 million). Pro-forma underlying
earnings, which assumes the company was in existence for a full
reporting period, fell 1.7% to US$133.1 million after accounting
for currency swings. On a constant currency basis, those earnings
rose 3.7%.
A 6.7% increase in revenue was underpinned by strong
performances at the company's document management and data
protection units, and aided by acquisitions including Recall
Singapore. The rise was offset by a poorer performance from the
destruction services business, which was the subject of a strategic
review. Recall said it plans to sell its German document
destruction business.
The earnings result was broadly in line with the company's
guidance provided in February that revenue growth would approach
the mid single-digits, while underlying earnings growth on a
constant currency basis would be lower than revenue growth.
The company forecast revenue growth in the current financial
year "approaching the high single digits", with the rate of
operating earnings growth again to be lower than for revenue.
Write to Ross Kelly at ross.kelly@wsj.com
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