alert!! stock to watch - slm

Sydney - Monday - July 14: (RWE)
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INVESTORS KEEPING A WARY EYE ON
SALMAT DOING WAY WITH OUTSOURCING


Overview:
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Ferret has had its beady eyes on Salmat for about a month and in
that time the shares have shot up 50c to a recodr $2.25 today.
Salmat has jumped on the bandwaggon of outsourcing and business
stretches from Australia across Asia and even to the US.
This is why the company found support on Friday in announcing a
deal over the Philippines business with new joint venture partner.
The new partner is a leading US call centre operator, Service
Zone Inc, which will acquire 51 per cent of its Salmat Philippines
based joint venture Contact World.
Contact World began operations in 2001 and is one of the
significant call centre providers in the Philippines servicing the
United States market.
Service Zone bought its 51 per cent holding in Contact World
from Salmats former joint venture partner ePLDT.
The EBIT rose to $26.4 million on revenue of $275.5 milion for
2003 compared with 2002 on a EBIT was $15.7 million on reveune of $269.6
million.

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Shares price: $2.25
High/low: $2.25/$1.65
Dividend: 3c
Div yield: 1.36
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Background:
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The company believes the customer base is another key to SLM's
future success.
Some of its long customers including Coles Myer, CentreLink and
Bi-Lo.
Salmat Ltd operates as a customer communications company
employing 1,800 people with operational facilities in Australia, New
Zealand, Taiwan, the Philippines and Hong Kong.
The company delivers its customer communications services to its
clients through its Business Process Outsourcing (BPO) and Customer
Contact Solutions (CCS) divisions.
Business Process Outsourcing (BPO): The division provides
clients with data management services, usually in conjunction with the
client's utilisation of either Salmat's document processing or delivery
services.
Salmat focuses on processing its clients' database into a format
that can be manipulated and managed in accordance with client
requirements.
Customer Contact Solutions (CCS): CCS's primary focus is the
efficient and effective service and delivery of clients' messages,
marketing and advertising materials and promotions to their customers.
Customer targeting and delivery services within CCS involve the delivery
of unaddressed advertising materials to households across Australia and
New Zealand.
As part of voice services, CCS operates three outsourced contact
centres in Sydney and Melbourne specialising in developing inbound and
outbound teleservices, managing outsourced contact centre activities and
Customer Relationship Management (CRM) through help desks, loyalty
programs and database management.
ENDS