Recall to close more facilities

Data management firm is making more cuts to its operations in order to realise $US6.5 million in annual savings.

Data management firm Recall is closing facilities in Australia and four other countries as it continues to trim costs.

The second change to its operations in a year will include the closure of 16 facilities in Australia, Brazil, France, Denmark and the United Kingdom and development of four new sites.

There was no mention of job cuts in the announcement by Recall on Monday.

The changes will incur about $US16 million in costs, which will be included in Recall's results for 2014/15 and are largely related to early exits from leases and charges from relocation.

Annual savings of more than $US6.5 million are expected to be delivered by the changes, from 2017/18.

US logistics giant Iron Mountain recently struck a $A3.4 billion deal to take control of Recall, and the two companies are currently working to complete the necessary regulatory paperwork.

Recall still expects to achieve earnings growth up to 12 per cent this financial year, excluding the impact of currency movements, to between $US215 million and $US220 million.

However, a stronger US dollar is expected to have a negative impact on earnings.

Recall's shares closed 11 cents, or 1.52 per cent, lower at $7.12.


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Source: AAP


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