ASX-listed marketing company Salmat has posted a $5.2 million loss for the last financial year in which it completed a major strategic review.
The loss was in stark contrast to the profit Salmat made in FY17, and the company put it down to $16.6 million in significant item costs, $15.3 million of which related to a loss of goodwill in its Marketing Solutions operating segment.
The remainder of the significant items figure was due to restructuring costs following business sales.
Salmat’s revenue from continuing operations fell 3.2 per cent in FY18 to $250.2 million, which was impacted by volume declines in the company’s catalogue business and reduced activity in its digital business.
The company said continued pressure on clients in a weak retail environment also impacted revenue as discretionary spend reduced.
Salmat’s underlying earnings before interest, taxes, depreciation and amortisation grew 0.5 per cent over the 12-month period to $20.3 million.
Rebecca Lowde, CEO of Salmat, said the results reflect the company’s new, smaller continuing operations following “a year of change”.
“The major contact centre business was sold following a comprehensive analysis of the entire Salmat group through the strategic review process,” she said.
“We also sold the MessageNet business and some smaller digital businesses as part of the same review.
“We are now more clearly focused on driving results from the remaining Marketing Solutions and Managed Services businesses.”