Sydney based distributor Ambertech has reported a shock downturn with revenues falling 11% overall during the past six months, their professional services revenue fell over 42%, profits also slumped 69% shares in the Company fell 12.2 % at 12 noon following the release of their latest data.
Overall revenues fell from $50.9M in H1 2024, to $45.4M in 2025, EBITDA fell 69% from $3.6M in H1 2024 to $1.1M while NPAT fell 119% to $300,000 from $!.6M in H1 2024.
In their latest ASX filing the Company that has constantly struggled despite several acquisitions is blaming “softer trading conditions” with insiders telling ChannelNews that the business is struggling to grow.
Despite the Company soliciting involvement in a Webcast to discuss their results media organisations were blocked from being able to ask questions.
One bright note for the business was their growth in retail sales with the division delivering a 32% increase in revenues.
The Company attributed their strong retail sales to an increase in demand for AV accessories and low-cost personal projectors.
The results for the six month period ending 31 December 2024 appear to show that several acquisitions made by the Company are failing to deliver the growth anticipated by management.
Managing Director, Peter Amos, said: “The first half result for the business was mixed. Whilst we saw growth from our Integrated Solutions and Retail segments, softer trading conditions weighed on our Professional segment”.
He added “External headwinds continued to impact the business, mainly in the form of ongoing inflationary and pricing pressures which reduced demand as consumer priorities responded to the current cost environment. This was evident in our musical instrument and professional products categories (such as studio and broadcast equipment)”.
The Company also admitted that several professional services clients had delayed or cancelled projects that the Company initially anticipated being able to deliver in the last half of 2024 with $3.5M in potential revenue now subject to being approved.
It also appears that discounting paid off in the retail market with Amos claiming that “lower price product prices resonated with customers. Overall, the diversified nature of the business showed resilience, and we are already observing green shoots in early 2H FY25 which we are optimistic will lead to a materially improved financial performance compared to 1H FY25.”
Chief Operating Officer, Robert Glasson claimed that both EBITDA and NPAT were affected by approximately $337,000 in restructuring costs.
The efficiencies of this activity have already started to be realised and as we head into the new half provides us with the flexibility to execute on our growth strategy.”
Also highlighted in their latest filings was a $3.4 increase in inventory of $3.4M as well as an increase in trade finance funding.
