Direct marketing group Salmat has posted lower half-year profit, but remains confident of meeting full-year earnings guidance provided the market continues to be stable.
Salmat reported half year net profit of $22.7 million for the first half of 2010/11, down 6.5% on the prior first half. Revenue was down 1.2% at $447.6 million.
In late December, Salmat acquired four digital and interactive businesses from Photon Group, including C4 Communications, Be Interactive, Returnity and MessageNet for $75.3 million. These purchases helped bring Salmat's net debt to $160.2 million, up from $152.2 in the period to 31 December 2009.
Salmat has declared an interim dividend of 11.5c per share, fully franked, a 4.5% increase on the previous interim dividend.
"This has been a busy and exciting first half for Salmat, with major activities relating to new service launches, business restructuring, site relocations, and new business acquisitions," said chief executive Grant Harrod.
"It's extremely pleasing that we have been able to continue to increase underlying earnings while making investments for future growth."
Together with the purchase of the digital businesses, Harrod highlighted a strong performance by the Lassoo business, the launch of a new strategy for the small to medium enterprise market, and the relocation of some of the victorian business to a new falicity, as standout events.
"Assuming trading conditions remain stable and comparable to the fist half, we anticipate remaining on track to meet our underlying EBITA guidance of $92-97 million," Harrod said.
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