Salmat FY11 profit falls 26.8%

Salmat Limited (ASX:SLM) saw declines in profit and revenue in FY11, despite gains in its digital businesses

Salmat Limited (ASX:SLM) revealed its net profit fell 26.8% in FY11 to $36 million, on investments growing the company's digital marketing business.

Revenue fell 1.8 per cent to $863 million, while underlying profit before investment costs fell 10.6 per cent to $42.4 million.

Salmat made a number of digital business acquisitions over the year, adding new digital services including self-service SMS and email, web development and e-commerce services.

The company said it was on track to meet its targeted acquisition synergies in FY12.

Its Lasoo pre-shop deals portal saw customer visits grow 43% in FY11 to more than 20 million. Salmat is now targeting break-even for the venture by the end of the current financial year.

To support its online growth ambitions, Salmat has appointed a new Digital CEO, Nick Spooner, who will assume his role in late August.

Regarding the company's prospects for FY12, CEO Grant Harrod noted that “many of Salmat's businesses have proven to be relatively resilient to economic softness.

“While we expect ongoing volatility in global markets will continue to dampen local trading conditions, we anticipate stable volumes in traditional services and continued high growth in digital volumes in the coming year,” he said.

SLM shares fell 1.87% in Tuesday's trading to $3.140.

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