Salmat narrowly misses profit and revenues drop amid continuing restructure and review

Salmat_logoSalmat, the marketing services company which began as a catalogue specialist in the 1970s has seen revenues drop by 7% in the first half of the 2016 financial year (compared with 2015) to $235.6m as a result of products being discontinued after a strategic review.

The review resulted in the company clawing back its first half loss to $69.7m in 2015 to just $500,000 in the first half, with earnings before income tax, depreciation and amortisation (EBITDA) rising 80% from $5.1m to $9.2m.

Salmat said it will conclude its three-year strategy of streamlining the business this year and will continue its two-year transformation strategy.

“The need for transformation became apparent as although solid progress had been made with the three-year strategy in terms of establishing strong technology platforms, Salmat had retained a lot of the cost and complexity of a much larger organisation and was operating with unsustainable structures and processes that were eroding margins,” said the company in a statement.

“Salmat’s senior management team is currently finalising the next phase growth strategy that will follow on from the transformation strategy.”

The company also warned that the current economic trading environment, in particular the retail sector and the competitive trading environment remained “significant business risks”.

Last year saw the death of co-founder Phil Salter who set up the business with Peter Mattick.

Simon Canning


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