After a year of acquisitions Sydney based distributor Ambertech has struggled to lift profits, despite adding a multitude of new revenue streams to the business since 20129.
Total revenues for the financial year increased by 9.4% to $84,226,000 (2022: $76,997,000).
Current liabilities for the business have risen from $14.4M in 2022 to $23.2M in 2023 an increase of $8.8M.
EBITDA fell to $4.9M in 2023 from $7.5M in 2022.
In their latest financials Ambertech also revealed that the purchase price for struggling audio distributor Convoy International was $2.8M with a $500,000 goodwill payment thrown in, the Sydney based business was generating $5M in revenues when purchased.
It also been revealed that Ambertech paid $1.3M for Connected Media Australia which had $3M in revenues and $600,000 for Noise Toys that was delivering $2M in revenues.
The acquisition of the Hills AV business which was delivering $25M in revenues was $4.6M with an $800.000 Goodwill payment also paid.
Despite the added revenues from acquisitions profits was only marginally up to $28.7M from $27M in FY 22.
Margins at the Sydney based distributor also fell.
The consolidated profit after providing for income tax for the financial year was $1,930,000 (2022: $3,681,000). The reduction in profit from the prior year was credited as being result of increased spend on marketing, employment costs and travel.
In the Home Entertainment market Ambertech generated revenues of $11.4M or with their key Philips projectors delivering the bulk of the revenue. Key customers are Harvey Norman, Big W, The Warehouse, Noel Leeming and Electus Distribution.
In the Professional Products, Musical Instruments market Ambertech delivered $29.2M in revenue.
In the Specialist Hi Fi market the business generated revenues of $43.6M key brands were described as Australian Monitor. Sonance, Williams AV, RTI, Bluesound, NAD, Aver, Grandview, and Newline.
Management said that the recent Convoy acquisition “Additional scale and allows for the creation of a new dedicated Specialist HiFi sales team”.
Managing Director, Peter Amos, said: “This financial year we have seen further growth across our dealer-based business units, and this demonstrates that our underlying business remains very strong. Contract delays have now receded, with some project work commencing during the second half of the financial year, and we now expect to see many project milestones during the first half of the 2024 financial year.”
Chief Operating Officer, Robert Glasson added: “during the 2023 financial year we saw a rise in business activity associated with increased dealer and supplier interaction. As a result, our performance for the current year was affected. We remain confident that investment in activities such as travel, marketing and training will bring about positive outcomes in the future. These steps align with our strategy for growth in the coming periods.”
Key accounts were One Diversified, Fredon Technology, Programmed Electrical, Vizcom Technologies, Electronic Living, AV Australia, Concept AV, Pro AV Solutions, Melbourne HiFi and Harvey Norman Commercial.
During the year operational executives and CEO Peter Amos got small pay rises.