Document storage and data protection company, Recall Holdings, lifted interim dividend, despite interim earnings halving because of costs associated with Iron Mountain’s proposed takeover of the company.
Net interim profit fell 49% to $US16.7 million ($A23.4 million) in the six months ended December 31, compared with $US32.5 million in the six months to December 31, 2014.
This included $US16.2 million of costs associated with the Iron Mountain takeover.
Despite that, Recall said it would pay a 9.5 cents a share interim dividend, up from the year-earlier payout of 9 cents.
Recall said it would defer a shareholder vote on the deal from March 17 to April 19.
Revenue fell 7% to $US397.6 million from the year-earlier $427 million as some customers deserted the company for other providers.
CEO Doug Pertz said the Iron Mountain transaction was “causing some short-term revenue headwinds”, but was confident the company would deliver a 2% rise in full year organic sales growth.
"Acquisitions already completed with add approximately 5 per cent to constant currency revenue growth in FY16," he said.
Mr Pertz said the stronger US dollar had also weighed on Recall’s financial results, but based on the exchange rates as of December 31, “the impact will be less pronounced” in the second half of the 2016 financial year.
Recall shares rose 0.9% to $6.895.
