Earnings were down 12.7 per4 cent to $48m, compared with $55m the year before, while sales were down 5.7 per cent to $422.3m (from $447.6m) and was at $253.5m.

Harrod says, “I’m pleased to report our traditional businesses have continued to post resilient underlying results and that our journey to a stronger digital presence is well underway.”

Salmat’s Targeted Media Solutions division reported a strong result with revenue up 17 per cent to $142.5m compared with 121.8m the year before, which the company attributed to the contribution of its new digital business.

The company reports that catalogue volumes remained solid at the top end of the market, while tier two and three retailers reduced activity. The SME market continued to perform well, with volume, revenue and earnings growth.

A key focus during the period in digital has been the consolidation of recently acquired businesses, investments and existing Salmat digital services into one integrated digital service centre, with a common product platforms and scalability.

Harrod continues, “We have made positive progress with our strategy to build an integrated digital offer, expanding our capability and investing in key initiatives and growing digital revenue on the prior period.

“While work to build the leadership and team structure and deploy scalable systems has pushed out the timing of the acquisition synergies, we are otherwise on track with our digital strategy and achieving continued growth from this fast-expanding market.”

In light of a deterioration in sentiment, Salmat has adjusted its forecast for full year earnings in the range of $78-83m

Harrod adds, “We are ready to face the challenging conditions with sound financials, acceptable gearing, strong cash flows and a clear strategy to deliver sustainable earnings.”

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