Salmat moves back to profit despite declining revenues

Salmat has turned last year’s $6m loss into a profit of $4.3m despite revenues continuing to fall, the company reported today.

Rebecca Lowde replaced Craig Dower as CEO in May

Full year revenue for the marketing services company was down by $15.5m to $435.3m as new business growth failed to keep pace with expired contracts.

The company said underlying earnings before interest, tax, depreciation and amortisation was up 16.3%, to $22.8m.

The results are the first for newly minted CEO Rebecca Lowde, Salmat’s chief financial officer who was elevated to the role in May following Craig Dower leaving the business by mutual agreement.

Lowde said the return to profit sent an important signal to the market: “The return to full year profit is a signifcant milestone for Salmat.”

“While revenue was down this year, we have been able to do more with that revenue, growing both earnings and net profit. We are also generating more cash from operations.”

In February Salmat announced a strategic review of its operations, including the potential sale of its call centres.

Reports last week suggested a deal on the call centres was imminent, forcing Salmat to make a statement to the market that it has decided against such a sale – although the review process remains ongoing.

Lowde said the transformation was having a positive impact despite continued challenges.

“These full year results are a testament to the work we’ve done to transform Salmat’s business operations, but we remain mindful of the ongoing challenges of the current economic landscape,” she said.

“We are setting plans in place to address these market challenges, innovate Salmat’s service capabilities and grow new business.”

The company did not declare a dividend but will look to recommence dividends in the 2018 financial year subject to business conditions.


Get the latest media and marketing industry news (and views) direct to your inbox.

Sign up to the free Mumbrella newsletter now.



Sign up to our free daily update to get the latest in media and marketing.