Salmat’s Targeted Media Solutions division – which includes the company’s distribution operations – posted a 2.1% boost in sales to $230.6m for the year ending 30 June 2010.
Earnings before significant items (EBITA) were also up 44.3% to $40.3m, as the company pointed to “new business wins” in the division. Salmat picked up the Coles catalogue distribution contract in December last year from rival PMP.
The wins led to an 11% boost in letterbox volumes from 4.5 billion catalogues in the 2008/09 financial year to 5 billion in 2009/10.
The company’s Business Process Outsourcing division sustained a 7.4% drop in sales to $343.4m. The company attributed this to “lower mail volumes, the closure of an underperforming direct marketing business and unfavourable foreign exchange movements”.
EBITA for the division was up 7.1% to $44.2m.
“Bulk mail volumes were down across the industry during the past financial year, as clients deferred discretionary mail spending and reduced the frequency of essential mail or transitioned this communication to electronic,” the company said.
Mail packs figures dropped 5%, from 1.27bn in 2008/09 to 1.21bn in 2009/10. Salmat chief executive Grant Harrod (pictured) told investors last week that the company does not expect the same rate of decrease in the current year, and that the division already has a “solid line up of new work”.
Salmat recorded overall revenues of $880.2m, which represented a year-on-year drop of 1.3%.
However, overall EBITA stood $91.2m, up 17.3% from 2008/09 levels, while net profit was up 42.5% to $49.1m.
The company also reduced its net debt from $167.5m to $134.3m.
“With our strong cash flow and solid new business pipeline, we are in a prime position to capitalise on opportunities within our existing client base, extend into new markets such as the small to medium enterprise (SME) space, and pursue strategic acquisition targets,” Harrod said.
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