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Salmat revenue down, figures into loss

Wednesday, 29 August 2018
By Wayne Robinson

Marketing services provider Salmat saw its revenue slip by 3.2 per cent, as the company dipped into the red with a $5.2m loss for the 2017/18 tax year.

Revenue was $250.2m compared with $258.5m the prior year, with CEO Rebecca Lowde attributing the decrease to the company selling off some parts of its business.

Salmat’s figures were also impacted by $16.6m significant items charge. Some $15.3m of this related to an impairment on loss of goodwill in the Marketing Solutions operating segment. The remainder was due to restructuring costs following business sales.

Underlying EBITDA was up marginally to $20.3m from $20.2m. Underlying profit before income tax

​from continuing operations of $13.7m was up $3.5m on FY17.

The company says revenue was impacted by volume declines in the catalogue business and reduced activity in the digital business. Continued pressure on clients in a weak retail environment also impacted revenue as discretionary spend reduced.

Lowde says, “We are now more clearly focused on driving results from the remaining Marketing Solutions and Managed Services businesses.

Driving results: Rebecca Lowde, CEO Salmat

“While FY18 saw some significant change to the Group, FY19 represents a fresh opportunity to revitalise Salmat’s Marketing Solutions business and drive further growth in Managed Services.

“We have a well-defined path to innovate our existing capabilities and extend Salmat’s reach and market share. We look forward to sharing our progress during the year ahead.”

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