Ambertech Profits Crash As Consumer Business Struggles
Sydney based distributor Ambertech has reported a 31% fall in profits despite a 19% lift in revenues.
As a result, the board has announced that no dividend will be paid. The Company whose business spans both consumer and professional categories said that revenues went from $27.9M to $32.4M as at December 30th, 2018.
Profits nosedived from $448,000 to $335,000 driven by a fall in their consumers business where the Company has faced new competition as brands such as Denon and Marantz get ranged at key customer JB Hi Fi.
Sales of consumer products were down 5% to $14.4M. EBIT was down 118% to just $213,000 from a high of $1.16M as at December 2017. The Company said that sales in the custom install channel were stable however sales via mass retailers tumbled.
The biggest growth for the Company was in their Professional Segment where sales climbed 57% to $16.6M from $10.56 at December 2017. Among the contributors was a significant growth in demand for new broadcast equipment by media Companies.
Total current liabilities have risen from $15.5M at 30th June 2018 to $19.1M at December 30th, 2018.
Company Secretary Robert Glasson said, “The second half of the year has been more difficult for the business in recent years, however we continue to hold a strong forward order book at present and continue to seek and add new agencies to complement our portfolio”.
He added “Our pipeline for completing capital equipment sales in our media systems area continues to be encouraging, across both our traditional media market and new growth area markets”.
There was no mention of the future for the Companies consumer business.