Salmat blames loss of goodwill in the marketing solutions operating segment for financial year loss

Salmat ​sold its contact centre business in April​ for $53 million

Salmat has announced a $5.2 million loss for the last financial year, despite selling its contact centre business for $53 million. 

The ASX-listed marketing services provider (ASX: SLM) sold its contact centre business in April to funds advised by Five V Capital in combination with the Probe Group, in order to free up capital and resources to invest in its marketing and micro-sourcing businesses.

In its full-year result to 30 June, Salmat reported revenue of $250.2 million, down by $8.3 million year-on-year. The group also attributed the bulk of $16.6 million in costs to an impairment on loss of goodwill in the Marketing Solutions operating segment.

Underlying EBITDA from continuing operations of $20.3 million was in line with the prior year, increasing $by $100,000. Underlying profit before income tax from continuing operations was $13.7 million and up $3.5 million on FY17.

“These results reflect Salmat’s new, smaller continuing operations following a year of change,” said Salmat CEO, Rebecca Lowde.

“The major contact centre business was sold following a comprehensive analysis of the entire Salmat Group through the strategic review process. We also sold the MessageNet business and some smaller digital businesses as part of the same review."

Lowde said the emphasis now is on driving results from the remaining marketing solutions and managed services businesses.

“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," she said. “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."

Key strategic pillars for FY19 relate to marketing solutions evolution, sales excellence and operational sustainability, underpinned by people. Specific programs planned include the salmathub catalogue distribution app; Lasoo; data insights; automated collation technology; client engagement and retention; service standards; and culture.

Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, join us on Facebook: https://www.facebook.com/CMOAustralia, or check us out on Google+:google.com/+CmoAu   

 

 

 

 

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Latest Videos

More Videos

Invest and earn with Coinbloc .us. Guaranteed Weekly ROI, early signals, fast withdrawals among others. I recommend Coinbloc .us as on...

Hans Jensen

Explainer: What marketers need to know about cryptocurrency

Read more

Investment decisions are a big deal, so why not get some guidance? You can day-trade cryptos, BUY and HOLD and evaluate the assets with f...

Dave Sigurd

Gartner: Digital isn't enough of a superpower for CMOs anymore

Read more

I normally don’t feel comfortable investing online but because the company I worked for downsized due to the pandemic and I was one of th...

Dave Sigurd

CMO's top 8 martech stories for the week - 9 June 2022

Read more

Investment decisions are a big deal, so why not get some guidance? You can day-trade cryptos, BUY and HOLD and evaluate the assets with f...

Dave Sigurd

Creating a marketplace for wellness

Read more

A solution for an retail industry data extraction. https://e-scraper.com/usefu...

"e-Scraper" Data Extracting

​Catchoftheday launches fee-based online shopping club

Read more

Blog Posts

2 hidden ingredients for leadership success CMOs need to know

Your success as a senior marketing professional has much in common with your success as a leader. Both marketing, and leadership activities, depend on building trust, encouraging action, and reliably fulfilling promises that have been made.

Gerard Penna

Leadership advisor, coach

How shifting economic trends are impacting digital media

Between further interest rate rises, inflation​, empty shelves, extortionate lettuce prices, supply chain issues and the barely believable events in Eastern Europe, the past six months there’s been a cacophony of environmental factors.

Kieran Reed

Senior digital manager, Alpha Digital

5 ways to turn imposter syndrome into confidence and conviction

Imposter syndrome. That feeling others will discover you are actually not as good as they expect, and at any point you will be exposed and ridiculed as a fraud. If you can relate to this, then you are not alone.

Rowena Millward

Author, consultant

Sign in