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

Blog Posts

Why efficiency and effectiveness are opposing forces in a marketing tug of war

I’ve been a long-time fan of renowned effectiveness experts, Peter Field and Les Binet, and their work. But while their approach is clearly important, the marketing leader’s challenge to deliver effectiveness more often lies in organisational structure. I see the bigger question being whether a marketing chief has a seat at the executive table, and the ear and respect of the CEO and company board.

Nickie Scriven

CEO, Zenith

Augmented Reality: What’s behind the marketing industry’s failure of imagination?

Every flagship smartphone in Australia includes hardware and software purpose-built for AR. A huge audience is ready and waiting. We have an opportunity to craft extraordinary, innovative work. But to get there, we need to push our creative thinking a little harder, writes Gil Fewster.

Gil Fewster

Creative technologist, The Royals

Does your brand need a personality review?

There are five tell-tale signs your brand needs to take a long hard look at itself.

Charlie Rose

Senior Strategy Consultant, Principals

Why it's important for me to know that? I don't get it, sorry.

James Fogle

7 things you need to know about Facebook's mood experiment

Read more

Info graphic have proven to be very useful to create brand awareness and drive traffic. Thanks for sharing these Information.Graphic Desi...

Govind Dadhich

Image intelligence:10 must-see infographics for marketers

Read more

Best web hosting packages Vancouver WA understands that only technical support and domain associated email address can bring huge leads ...

Radiata Solutions

6 Ways to ramp up Social Media to Your Web Design

Read more

I had the same vision about change from CX terminology to HX. Even with almost the same title: 'Forget customer experience...' https://ww...

Ekaterina Khramkova

Forget customer experience, human experience is marketing's next frontier

Read more

Thank you, so do I.

David Freeman

Sustainability of message: H2coco founder's commitment to consumers

Read more

Latest Podcast

More podcasts

Sign in