Sydney based audio and custom install distributor Ambertech has launched another restructure after a year in which revenues fell, the business slid to a loss and its shares crashed 58% during the past 12 months.

The ASX listed company reported a 3.4% fall in FY26 revenue to $97.8 million and a loss of $2.3 million, a result management has attributed to what it describes as a transitional year.

The result follows years of acquisition activity that has failed to deliver the earnings growth the company promised shareholders.

Executive Pay Untouched By The Slump

The downturn did not flow through to executive pay. Chief executive Peter Amos took home $478,000 for the year, while company secretary Robert Glasson was paid $341,303.

Another “Strategic Reset”

Management said FY26 was “a transitional year, with the Board and management completing a strategic reset to restore future profitability, improve capital efficiency, strengthen working capital discipline and simplify the operating model”.

It is a similar line to the one the company has used after previous poor results.

The reset carried $3.2 million in charges covering goodwill impairment, inventory provisions and restructuring costs.

Analysts said the numbers point to a clear struggle to convert revenue into profit. Profit after tax has fallen steadily, from $3.68 million in FY22 to just $840,000 in FY25, before the company slid into a statutory loss in FY26.

Acquisitions That Did Not Deliver

Ambertech has leaned heavily on acquisitions to prop up revenues and profits.

In January 2023 it bought the distribution business of Convoy International Pty Ltd for between $2.8 million and $3 million, a deal that delivered premium audio brands including NAD, Bluesound and JBL Home. The acquisition was expected to add $4 million to $5 million in annual revenue and strengthen the distributor’s position with specialist AV retailers and residential installers. On the FY26 numbers, that has not materialised.

The company also acquired the AV business of Hills Limited in 2019, another deal that failed to deliver meaningful growth.

Alongside acquisitions, Ambertech has been chasing new distribution rights. In 2022 it added Breedlove Guitars, Kasta Technologies and James Tyler Guitars, and it has more recently picked up ABB and Zenitel.

What Happens In FY27

The company said its priority for the coming year is to improve earnings quality through sharper portfolio focus, stronger margin management and further simplification of the operating model. It is also moving to cut inventory.

Capital will be directed to what management calls higher return opportunities aligned with its strategic priorities, naming Building Control and Smart Building Technologies, Critical Communications and Security solutions, selected emerging technology categories, and the continued development of house brand products.