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

Salmat, 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.