Salmat Limited (ASX:SLM) is today providing a trading update and earnings guidance for the year ending 30 June 2017.

Tuesday, 9th May 2017

Salmat Limited market update Salmat Limited (ASX:SLM) is today providing a trading update and earnings guidance for the year ending 30 June 2017.

Following a good result for the first half of FY17, Salmat's retail client base continues to face strong market pressures which have led to a drop in discretionary spending on marketing services during the second half of FY17. Catalogue and digital volumes have decreased and yield for top tier clients has softened.

"We have been pleased with our progress across four successive halves and the business transformation we commenced in January 2015 has successfully reduced costs, streamlined our operations and established Salmat's market leadership in key segments. However, results this year will be impacted by the external environment.

"As stated at half year, Salmat is considering a number of strategic options to help drive profitable growth and maximise shareholder value and will announce plans along with the financial year results," said CEO, Craig Dower.

"Based on the current market and with a clearer view of our year to date financial performance, we are currently anticipating full year EBITDA in the range of $20 - $22 million," said Mr Dower.

-ENDS-

ABOUT SALMAT

Salmat is a leading Australian marketing services business. We partner with our clients to help them with the constant pressure of acquiring and servicing their customers, week-in, week-out. With media, digital and contact capabilities, we have the right solutions for our clients, enabling them to Reach, Convert and Serve more customers.

Founded in 1979, Salmat has evolved from a small letterbox distribution business to an ASX-listed company. With a talented team across four countries, we work with some of Australia's most recognised and trusted brands to manage billions of customer interactions every year.

Reach: We offer the broadest reach media (online & offline), with the ability to target individuals and up to 17 million people.

Convert: We deliver conversion across multiple channels, creating more opportunities for our clients' customers to buy.

Serve: We make every one of our clients' interactions count online and offline.

For further information, please contact:

Craig Dower Chief Executive Officer [phone]

Peter Mattick Chairman [phone]