22 Business Reviews
Recall achieved revenue growth of 10% for the year, the
majority of which was through organic growth. This was
a significant achievement, as the 18 acquisitions made
during the year created a larger base from which to grow.
Importantly, growth in profitability continued to exceed
Recall’s global business foundation customer cartons improving significantly in the A very efficient, modern storage facility in
comprises a standard service menu, second half of the year. an existing market was added with the
standard operating procedures and a purchase of Atlanta Records Management,
Document Management Services
standard, global IT platform. From that a very strong player in the legal and financial
Document Management Services (DMS),
basis, Recall has been able to clearly define Recall’s major business segment, continued services segments in the south-east of the
acceptable service delivery through its to achieve improved revenue growth, United States.
statistically-based service improvement particularly in the second half.
The March acquisition of the UK-based
program, Perfect Order.
Acquisitions were undertaken during the Sentinel brought a ‘best practice’ facility in
A Perfect Order is one which is not only on year to broaden the business ‘footprint’ into Greenwich, London – a market in which
time and complete but one that has been new and strategically important markets, Recall’s existing capacity had become
delivered completely consistent with Recall’s and also to add efficient storage capacity to constrained. The ‘mega-centre’ provides
standard operating procedures. support future growth. substantial additional capacity to service
A goal for the year was to expand into two growth in this market.
This program has been a mobilising force
new, significant North American markets.
behind business improvement for Recall in the During the year, Recall became the leading
This was achieved through the purchase of
past year. Early evidence shows that it is document management provider in
Professional Records Storage, providing
driving increased customer satisfaction and, in Scandinavia with entry into two new markets
entry into the Washington, DC market, and
turn, revenue growth. Perfect Order continues the acquisition of All-Data in Minnesota, – Sweden and Finland. It also completed the
to have a positive effect on reducing customer with centres in the Twin Cities of purchase of the leading data management
turnover, with the ratio of new to discontinued Minneapolis-St Paul. services business in Oslo, Norway –
Auckland, New Zealand
Year ended Year ended
A$ millions 30 June 2003 30 June 2002 Change %
Sales 698 634 10
Comparable operating profit1 130 111 17
1 Comparable operating profit is defined on page 81.
Arkivrommet Recall – in which Recall has held Revenue segmentation Revenue segmentation
an equity stake since 2001, and increased its by region by product
stake in Arkivrommet in Denmark.
Elsewhere, extra capacity has been A$516 A$634 A$698 A$516 A$634 A$698
million million million million million million
developed. Recently, a new mega-centre
was opened in Boston, USA and a highly 3% 3%
efficient, one million carton mega-centre was
opened in Sao Paulo, Brazil.
Through its joint venture in Singapore, Recall
4% 5% 28%
operates the tallest information centre in the
world. The 45-metre storage tower 19% 23% 18% 27%
was matched during the year with the
construction of a second tower. Both feature 25% 19% Integrated
a sophisticated crane system. Solutions
Secure Destruction Services Protection
58% 52% Australia/ 54% 56% Services
Secure Destruction Services (SDS) is New Zealand 58%
Recall’s fastest growing business, with a Destruction
leading position in North America.
A focus for SDS during the year was the Services
consolidation of acquisitions made in the past 2001 2002 2003 2001 2002 2003
three years, which included a number of the Years to 30 June Years to 30 June
leading secure destruction companies in
North America. Those acquisitions formed a
national network of secure destruction facilities
which have been re-branded and brought
under a single management team.
Another aim in SDS was to fill the
geographic ‘holes’. That was achieved to a
great extent by acquisitions in key markets
Atlanta, USA Sydney, Australia
24 Business Reviews
“Through Recall’s global quality initiative – Perfect Order – we have been able to
define in very objective terms how we measure quality service, allowing us to
understand whether we are delivering on our promise to customers. Through
our efforts in Recall this year, we now have the ability to show our customers
exactly how we performed … by service centre, by order, by day, by shift, by
type of item, by any way they want to slice it.”
President & Chief Executive Officer, Recall
including in the United States, major centres Data Protection Services
in Indiana, Kentucky, Mississippi, Ohio, During the year, this business achieved
Rhode Island and a number of locations in consistent, profitable growth in its
Texas, and Vancouver in Canada. established markets, benefiting from the
heightened awareness of the need for
A number of important, national contracts
adequate disaster recovery systems in the
were also gained in the United States,
current global security environment.
including a contract with Wal-Mart to service
3,000 pharmacies across the country. A significant accomplishment was the
conversion of systems to a common
In Thailand, where Recall had already
operating platform, allowing Recall to
forged a presence in DMS and Data
provide consistent, secure data tape storage
Protection Services, a Secure Destruction
and business continuity services in its
Centre was opened in the industrial province
key markets of North America, the
of Samutprakarn, outside Bangkok.
United Kingdom and Asia-Pacific. There
External factors continue to fuel growth in are plans for expansion of these services
demand for secure destruction, as new in South America.
regulations and heightened concerns about
The provision of software escrow services
identity theft and corporate governance
continued to expand globally with the North
have increased attention on these issues.
American business growing by 26% due to
In the US, a raft of new State privacy laws
a strong sales program.
require the secure destruction or shredding
of certain documents. Integrated Document Solutions
Recall’s smallest business stream, Integrated
Document Solutions (IDS), has been
strategically refocused in the past year. The
number of digital images stored on-line was
increased significantly and the business
offering moved to a more integrated
solution, including not simply the hosting of
images, but also the conversion of
documents from paper to digital form.
Atlanta, USA Singapore
To support this strategic shift, additional
scanning capacity was added in each of
IDS’ major markets.
This year, Recall made its first IDS
acquisition, ISI in Atlanta, Georgia,
complementing the existing business and
bringing specialised imaging and data
Recall Secure Destruction Services unrecognisable and / or unusable,
ensures dependable, confidential then recycled whenever possible.
Recall’s four complementary business
destruction of all types of material for
streams provide customers with a full suite Through its reliable and secure
clients in industries such as financial
of services. services, Recall is capable of
services, health care and information
The sales organisation is being transformed destroying a wide range of sensitive
from a product-oriented to a solution-based materials. In addition to confidential
organisation, structured to serve particular Recall’s global network of Secure paper documents, disks, tapes and
industries. Where, previously, Recall might Destruction Centres is specifically films, Recall can handle items with
have had two or three people calling on a engineered, staffed and monitored high intrinsic value such as excess,
customer, it now has one national, major to provide the highest standards of superseded or sub-standard branded
account manager for each customer – with efficiency and confidentiality in dealing products that need to be removed
product specialists brought in as needed for with items including records of financial from channels of commerce.
a specific solution. transactions, consumer information, A Certificate of Destruction is available
medical patient records and uniforms. for each service.
Growth for Recall will continue to come
from selected acquisitions and from the Materials are collected by Recall’s With integrity and discretion, Recall
large segment of the market for outsourcing trained Security Service ensures the proper disposal of all types
of information management that is, Representatives, transported in of confidential information and the
as yet, untapped. secured trucks, and delivered to medium on which it is held, removing
a Recall Destruction Centre. the risks associated with accidental or
The materials are then shredded intentional breaches of privacy.
or pulverized to render them