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Shareholder Review
    Contents
    Introduction
    About Salmat
    Chairmans Message
    Joint Managing Directors Report
    Review of Operations
    BusinessForce
    SalesForce
    MediaForce
    Corporate Responsibility Report
    Board of Directors
    Corporate Directory
Full Financial Report
    Financial Contents
    Corporate Governance
    Directors Report
    Auditors Independence Declaration
    Income Statements
    Balance Sheets
    Statements of Recognised Income and Expense
    Cash Flow Statements
    Notes to the Financial Statements
    Directors Declaration
    Independent Auditors Report
    Independent Auditors Report
    Shareholder Information

Directors' Report

Your directors present their report on the consolidated entity (referred
to hereafter as the Salmat Group) consisting of Salmat Limited and
the entities it controlled at the end of, or during, the year ended
30 June 2008.
Directors
The following persons were directors of Salmat Limited during
the whole of the financial year and up to the date of this report:
Richard Lee
Peter Mattick
Philip Salter
John Thorn
Ian Elliot
Principal activities
During the year, the principal continuing activities of the Salmat
Group consisted of:
(a) MediaForce delivers advertising catalogues to homes throughout
Australia and New Zealand. Detailed demographic analysis
enables us to target the consumers most likely to buy particular
products, helping our customers to maximise their sales.
MediaForce also includes Dialect (Australia’s leading provider
of hosted mobile and interactive voice response solutions)
and Dynamic Catalogue retail search engine (Lasoo.com.au).
(b) BusinessForce processes and mails bank and credit card
statements, accounts and other customised bulk mailings in
Australia, Hong Kong, Taiwan and the Philippines. We receive
customers’ electronic data, process it using smart technology,
and print and mail statements, providing significant cost savings.
(c) SalesForce handles inbound and outbound telephone, fax, email
and online communications on behalf of our customers, from
facilities in Australia, New Zealand and Malaysia. Inbound
services include technical support and customer care; while
outbound services include telemarketing, direct sales and
customer retention. We also facilitate business-to-business and
business-to-consumer conversations through a range of sales
support services.
Dividends – Salmat Limited
Dividends paid to members during the financial year were as follows:
2008 2007
$’000 $’000
Final ordinary dividend for
the year ended 30 June 2007
of 10.0 cents (2006: 9.5 cents)
per fully paid share fully franked,
paid on 28 September 2007 11,883 11,139
Interim ordinary dividend for
the year ended 30 June 2008
of 8.0 cents (2007: 8.0 cents)
per fully paid share fully franked,
paid on 8 April 2008 12,444 9,416
Special dividend for the year
ended 30 June 2007 of 10.0 cents
per share, fully franked, paid on
28 March 2007 – 11,769
24,327 32,324
Performance indicators
Management and the board monitor the Group’s overall performance,
from its implementation of the strategic plan through to the performance
of the Group against operating plans and financial budgets.
The board, together with management, have identified key performance
indicators (KPIs) that are used to monitor performance. Key
management monitor KPIs on a regular basis. Directors receive reporting
on the critical KPIs for review prior to each monthly board meeting
allowing all directors to actively monitor the Group’s performance.
Risk management
The Group takes a proactive approach to risk management.
The board has a number of mechanisms in place to ensure that
management’s objectives and activities are aligned with the risks
identified by the board. These are detailed in the corporate
governance statement, which accompanies this report.
Environmental issues
The Salmat Group’s operations are not regulated by any significant
environmental regulation under a law of the Commonwealth or of a
State or Territory.
Review of operations
A review of the Salmat Group’s operations and the results for the
year ended 30 June 2008 is set out in the Shareholder Review.
Significant changes in the
state of affairs
On 2 November 2007, Salmat completed the acquisition of 100%
of HPAL Limited (HPAL) under the scheme of arrangement between
HPAL and the holders of fully paid ordinary shares in HPAL.
Consideration paid for the acquisition consisted of $212,465,037
in cash and 18,703,865 ordinary shares at an issue price of
$4.63 per share pursuant to the scheme of arrangement.
Matters subsequent to the end
of the financial year
(a) Dividends
Since the end of the financial year the directors have recommended
the payment of a final ordinary dividend of $16,673,160 (10.5 cents
per fully paid share fully franked) to be paid on 15 October 2008 out
of retained profits at 30 June 2008.
(b) Borrowings
On 18 August 2008, Salmat refinanced the outstanding balance
on its $75 million 364 day syndicated facility (tranche B) with a
$50 million cash advance facility (tranche C). The tranche C facility is
for a term of two years, maturing on 18 August 2010 and is under the
same bank covenants and conditions as the syndicated loan facility.
Except for the matters discussed above, no other matter or
circumstance has arisen since 30 June 2008 that has significantly
affected, or may significantly affect:
(a) the Salmat Group’s operations in future financial years; or
(b) the results of those operations in future financial years; or
(c) the Salmat Group’s state of affairs in future financial years.
Likely developments and expected
results of operations
Additional comments on expected results of certain operations of
the Salmat Group are included in this Annual Report under the
review of operations.
Further information on likely developments in the operations of the
Salmat Group and the expected results of operations have not been
included in this report because the directors believe it would be likely
to result in unreasonable prejudice to the Salmat Group.