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

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.

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