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Ambertech Shares Crash 23% After Aquisition Of Toy, Pro AV + Connected Businesses

Ambertech shares have crashed over 23% this week after the Company issued a profit guidance, the fall follows a major acquisition program spanning toys, sound gear, pro communication and connected home products.

In a statement to the ASX directors said that they anticipate the following results:

– Revenue in the range of $38m-$40m (Dec 20: $38.9m).
– EBIT in the range of $3.2m-$3.4m (Dec 20: $3.8m); and
– Net Profit Before Tax (NPBT) in the range of $2.7m-$2.9m (Dec 20: $3.2m)

Executives claimed that expectations are based on unaudited results for the period to date despite first quarter results being “patchy” due to COVID-19 restrictions.

Included in the, expected NPBT for the period is Job Saver of $0.7m (Dec 20: JobKeeper $1.1m)

The Company said that they are confident that in 2022 strategic acquisitions will provide growth and that their Noise Toys business is now fully integrated along with their Connected Media integration.

The business is hoping to expand their reach to achieve more system sales where the take the role of a complete supplier for the Pro AV and custom install market.

They are also focused on growing their recurring services model where multiyear support contracts are entered into.

They are also looking to expand their video conferencing and streaming business, following their acquisition of Australian Monitor.

In the consumer market the business is looking to expand their range of low-cost LED based projectors, as well as grow their personalised headphone brand Nura.

Ambertech recently completed the acquisition of the MI business Noise Toys Imports, which they are describing as a strategic addition to grow their reach and reputation in the MI market. The Noise Toys acquisition adds $1.2-1.5m in annual revenue and circa $0.4m-$0.5m in Gross Profit to the business.

The business is also hoping that their recently completed acquisition of Connected Media Australia will help them grow in the residential and commercial control market. They claim that Connected Media adds $2.5m-$3.0m in annual revenue and circa $0.8m-$1.0m in Gross Profit.



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