AMBERTECH LIMITED — Annual Report 2009

Aug 30, 2009

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AMBERTECH LIMITED AND CONTROLLED ENTITIES

ACN 079 080 158

APPENDIX 4E ‐ PRELIMINARY FINAL REPORT

Year Ended 30 June 2009.

FULL YEAR RESULTS ANNOUNCEMENT

For immediate release 31 August 2009.

HIGHLIGHTS

Revenue up by 2.5% to $71.6M EBIT down by 43.5% to $2.8M NPAT down by 43.2% to $1.8M Final Dividend of 2 cents per share fully franked.

CONTENTS

Results for Announcement to the Market Preliminary Final Report Notes to the Preliminary Final Report Commentary on the Results Outlook

Ambertech Limited ACN 079 080 158 Unit B, 5 Skyline Place, Frenchs Forest NSW 2086 Tel: 02 9452 8600 Fax 02 9975 1368 email: rglasson@ambertech.com.au web: www.ambertech.com.au

Ambertech Limited ACN 079 080 158 Preliminary Final Report ‐ Year Ended 30 June 2009

Results For Announcement to the Market

Key Information Revenue from ordinary activities Profit after income tax for the period attributable to members Dividends Final dividend declared Record date for final dividend Payment date for final dividend	2009 2008 $'000 $'000 71,620 69,876 1,806 3,179 Amount per security 2 cents	$'000 % 1,744 2.5% (1,373) (43.2)% Movement Franking % 100%
		15September 2009
		30 September 2009

The Board has established a dividend reinvestment plan, whereby Shareholders may elect (subject to the rules of the plan) to reinvest dividends payable by Ambertech Limited to the shareholder. The Board has determined not to invoke the plan for the final dividend in respect of the 30 June 2009 financial year.

Dividend History Interim dividend paid 14 April 09 Final dividend payable 30 September 2009 Total Key Ratios Net tangible assets per security	1.5 cents 3.5cents 2.0 cents	100% 100%	100% 100%
		100%
		2009 ¢ 56.7	2008 ¢ 54.0

Further explanation of the results follows in the attached commentary.

Ambertech Limited ACN 079 080 158 Preliminary Final Report ‐ Year Ended 30 June 2009

Consolidated Income Statement Revenues Cost of sales Gross profit Other income Employee benefits expense Distribution costs Marketing costs Premises costs Depreciation and amortisation expenses Finance costs Travel costs Restructure costs Other expenses Profit before income tax Income tax expense Profit attributable to the members of the parent entity Earnings per share Basic earnings per share Diluted earnings per share	2009 2008 $'000 $'000 71,620 69,876 (48,815) (45,109) 22,805 24,767 ‐ 141 (11,366) (10,503) (1,387) (1,234) (2,445) (2,637) (1,614) (1,410) (370) (306) (392) (537) (637) (654) ‐ (1,721) (2,045) (1,169) 2,549 4,737 (743) (1,558) 1,806 3,179 2009 2008 ¢ ¢ 5.9 10.4 5.9 10.4 Economic Entity	2009 2008 $'000 $'000 71,620 69,876 (48,815) (45,109) 22,805 24,767 ‐ 141 (11,366) (10,503) (1,387) (1,234) (2,445) (2,637) (1,614) (1,410) (370) (306) (392) (537) (637) (654) ‐ (1,721) (2,045) (1,169) 2,549 4,737 (743) (1,558) 1,806 3,179 2009 2008 ¢ ¢ 5.9 10.4 5.9 10.4 Economic Entity
		24,767 141 (10,503) (1,234) (2,637) (1,410) (306) (537) (654) (1,721) (1,169)
		4,737 (1,558)
		3,179
		2008 ¢ 10.4
		10.4

Ambertech Limited ACN 079 080 158 Preliminary Final Report ‐ Year Ended 30 June 2009

Consolidated Balance Sheet ASSETS CURRENT ASSETS Cash and cash equivalents Trade and other receivables Tax receivable Inventories TOTAL CURRENT ASSETS NON‐CURRENT ASSETS Plant and equipment Intangible assets Deferred tax assets TOTAL NON‐CURRENT ASSETS TOTAL ASSETS LIABILITIES CURRENT LIABILITIES Trade and other payables Other financial liabilities Income tax payable Provisions TOTAL CURRENT LIABILITIES NON‐CURRENT LIABILITIES Provisions TOTAL NON‐CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Share Capital Reserves Retained earnings TOTAL EQUITY	2009 2008 $'000 $'000 2,793 4,634 11,338 12,334 9 283 14,273 11,512 28,413 28,763 583 770 2,970 2,970 687 471 4,240 4,211 32,653 32,974 6,523 7,036 4,200 4,502 ‐ 435 918 827 11,641 12,800 700 620 700 620 12,341 13,420 20,312 19,554 11,146 11,190 168 102 8,998 8,262 20,312 19,554 Economic Entity	2009 2008 $'000 $'000 2,793 4,634 11,338 12,334 9 283 14,273 11,512 28,413 28,763 583 770 2,970 2,970 687 471 4,240 4,211 32,653 32,974 6,523 7,036 4,200 4,502 ‐ 435 918 827 11,641 12,800 700 620 700 620 12,341 13,420 20,312 19,554 11,146 11,190 168 102 8,998 8,262 20,312 19,554 Economic Entity
		28,763
		770 2,970 471
		4,211
		32,974
		7,036 4,502 435 827
		12,800
		620
		620
		13,420
		19,554
		11,190 102 8,262
		19,554

Ambertech Limited ACN 079 080 158 Preliminary Final Report ‐ Year Ended 30 June 2009

Consolidated Statement of Cash Flows CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers Payments to suppliers and employees Interest received Interest and other costs of finance paid Income taxes paid Income taxes refunded Goods and services tax remitted Net cash (used in)/provided by operating activities CASH FLOWS FROM INVESTING ACTIVITIES Payments for plant and equipment Net cash (used in) investing activities CASH FLOWS FROM FINANCING ACTIVITIES Dividends paid to shareholders Proceeds from borrowings Payments for shares bought back Repayment of borrowings Net cash (used in) financing activities Net increase in cash and cash equivalents held Cash and cash equivalents at beginning of year Effect of exchange rate changes on the balance of cash and cash equivalents held in foreign currencies at the beginning of the financial year. Cash and cash equivalents at end of year	2009 2008 $'000 $'000 78,863 71,243 (72,580) (61,761) 94 234 (392) (537) (1,406) (1,291) 287 937 (5,119) (5,217) (253) 3,608 (185) (351) (185) (351) (1,074) (2,150) 11 1,500 (43) ‐ (302) (4) (1,408) (654) (1,846) 2,603 4,634 2,058 5 (27) 2,793 4,634 Economic Entity	2009 2008 $'000 $'000 78,863 71,243 (72,580) (61,761) 94 234 (392) (537) (1,406) (1,291) 287 937 (5,119) (5,217) (253) 3,608 (185) (351) (185) (351) (1,074) (2,150) 11 1,500 (43) ‐ (302) (4) (1,408) (654) (1,846) 2,603 4,634 2,058 5 (27) 2,793 4,634 Economic Entity
		3,608
		(351)
		(351)
		(2,150) 1,500 ‐ (4)
		(654)
		2,603 2,058 (27)
		4,634

Ambertech Limited ACN 079 080 158 Preliminary Final Report ‐ Year Ended 30 June 2009

Consolidated Notes to the Statement of Cash Flows Cash and cash equivalents Cash and cash equivalents included in the Cash Flow Statement comprise the following amounts: Cash on hand At call deposits with financial institutions Reconciliation of net cash provided by/(used in) operating activities to profit or loss after income tax Profit for the year Depreciation and amortisation Net loss on disposal of plant and equipment Borrowing expenses Net exchange differences Non‐cash share based payments Changes in operating assets and liabilities Decrease/(Increase) in trade and other receivables (Increase)/Decrease in inventories Decrease in tax receivable (Decrease)/Increase in payables Increase/(Decrease) in provisions (Increase) in deferred taxes Net cash (used in)/provided by operating activities	2009 2008 $'000 $'000 3 3 2,790 4,631 2,793 4,634 1,806 3,179 370 306 2 ‐ ‐ 1 550 (140) 66 66 1,014 (4,274) (2,749) 2,428 264 1,213 (1,530) 862 169 (24) (215) (9) (253) 3,608 Economic Entity	2009 2008 $'000 $'000 3 3 2,790 4,631 2,793 4,634 1,806 3,179 370 306 2 ‐ ‐ 1 550 (140) 66 66 1,014 (4,274) (2,749) 2,428 264 1,213 (1,530) 862 169 (24) (215) (9) (253) 3,608 Economic Entity
		4,634
		3,179 306 ‐ 1 (140) 66 (4,274) 2,428 1,213 862 (24) (9)
		3,608

Non Cash Financing and Investing Activities

There were no non‐cash financing or investing activities during the financial year.

Ambertech Limited ACN 079 080 158 Preliminary Final Report ‐ Year Ended 30 June 2009

Notes to the Preliminary Final Report

Economic	Entity
2009	2008
$'000	$'000

NOTE 1: Basis of Preparation

The Preliminary Final Report has been prepared in accordance with ASX Listing Rule 4.3A and is based on accounts which are in the process of being audited.

NOTE 2: Revenue

Revenue ‐ Sale of goods and services ‐ Interest received Other income ‐ Net foreign currency gains	71,526 94 71,620 ‐ ‐	69,642 234
		69,876
		141
		141

NOTE 3: Items Included in Profit

Additional information on the nature of expenses Inventories Cost of sales Write down of inventories to net realisable value Employee benefits expense Salaries and wages Employee termination expense Depreciation Plant and equipment Furniture and fittings Leasehold improvements Amortisation Leased plant and equipment Bad and doubtful debts Rental expense on operating leases: Minimum lease payments Net foreign currency losses	48,815 202 11,288 78 11,366 141 34 193 368 2 303 1,070 550	45,109
		517
		10,288 215
		10,503
		164 33 106
		303
		3
		21
		972
		‐

Ambertech Limited ACN 079 080 158 Preliminary Final Report ‐ Year Ended 30 June 2009

Notes to the Financial Statements (continued) NOTE 4: Earnings Per Share Basic earnings per share (cents) Weighted average number of ordinary shares (number) Earnings used to calculate basic earnings per share ($) Diluted earnings per share (cents) Weighted average number of ordinary shares (number) Earnings used to calculate diluted earnings per share ($)	2009 2008 $'000 $'000 5.9 10.4 30,678,062 30,708,305 1,806,000 3,179,000 5.9 10.4 30,678,062 30,708,305 1,806,000 3,179,000 Economic Entity	2009 2008 $'000 $'000 5.9 10.4 30,678,062 30,708,305 1,806,000 3,179,000 5.9 10.4 30,678,062 30,708,305 1,806,000 3,179,000 Economic Entity
		30,708,305
		3,179,000
		10.4
		30,708,305
		3,179,000

(a) The effect of the Executive Share Option Plan options on issue is not considered dilutionary because based on conditions at the date of this report, it is considered unlikely that these options would be converted into ordinary shares

NOTE 5: Retained Earnings Retained profits at the beginning of the year Net profit for the year Dividends paid Retained profits at the end of the year	8,266 1,806 (1,074) 8,998	7,237 3,179 (2,150)
		8,266

Ambertech Limited ACN 079 080 158 Preliminary Final Report ‐ Year Ended 30 June 2009

Commentary on the Results

The Directors of Ambertech Limited today announced the results for the financial year ended 30 June 2009. Revenue from ordinary activities was a record for the business of $71.6 million, up 2.5% on the previous financial year.

Growth was driven by strong sales in a number of areas across the Ambertech business. Our professional and broadcast products recorded excellent sales for the year, whilst we continued to make market share gains with our projection, display and accessories brands.

Chairman of Ambertech, Mr Peter Wallace, said the record sales result continued the trend from the first half of the year, and represented an excellent achievement in difficult trading conditions. Mr Wallace said the result was a testament to the quality of the brands that Ambertech represents in Australia and New Zealand.

Offsetting the revenue growth for the year were a number of factors, including lower margins from more difficult market conditions, and the impact of fluctuations in the Australian dollar. As a result, net profit after tax for the year fell to $1.8 million, down 43.2% on the previous financial year, and in line with advice given to the market on 27 July 2009.

Mr Wallace also announced that Ambertech would continue to maintain a full year dividend payout of greater than 50% of earnings to shareholders. A final dividend of 2.0 cents per share, fully franked will be paid to shareholders on 30 September 2009, bringing total dividend payout in respect of the financial year to 3.5 cents per share.

A summary of the results by business segment is as follows:

Sales to external customers Segment EBIT Unallocated expense EBIT Interest Net profit before tax Income tax expense Net profit after tax	$'000 41,448 2,276 Lifestyle	Professional $'000 26,994 1,799	New Zealand $'000 3,084 116	Total $'000 71,526
				4,191 (1,344)
				2,847 (298)
				2,549 (743)
				1,806

Ambertech Limited ACN 079 080 158 Preliminary Final Report ‐ Year Ended 30 June 2009

Commentary on the Results (continued) Lifestyle Entertainment Segment Sales to external customers Segment EBIT	2009 $'000 41,448 2,276	2008 $'000 38,780 4,872	$'000 % 2,668 6.9% (2,596) (53.3)% Movement	$'000 % 2,668 6.9% (2,596) (53.3)% Movement
				(53.3)%

Ambertech’s lifestyle entertainment business segment is a leader in the distribution of home theatre products to dealers, distribution and supply of custom installation components for home theatre and commercial installations to dealers and consumers, and the distribution of projection and display products with business and domestic applications.

Revenue growth for the year is a reflection of the strong performance of our newer initiatives. In particular, we had strong growth in our accessories and display product areas. The diversity of Ambertech’s business and our ability to add new agencies to complement our other brands will continue to be a major strength of the business.

Managing Director of Ambertech, Mr Peter Amos, said that lower margins in the lifestyle entertainment segment of the business were a reflection of both the state of the economy during the year, and the impact of fluctuations in the Australian Dollar. “There are pressures on margins at both the wholesale and retail levels for lifestyle products, especially in consumer electronics,” said Mr Amos.

Professional Segment Sales to external customers Segment EBIT	26,994 1,799	26,333 1,828	661 (29)	2.5%
				(1.6)%

Ambertech’s professional business segment supplies product and services to television stations, radio stations, cinemas, post‐ production facilities, as well as military and education establishments. Being entirely business‐to‐business in nature, these divisions are unaffected by the potential volatility of consumer sentiment or retail sales trends.

The result for the year ended 30 June 2009 was underpinned by ongoing project work, both in our traditional markets and newer markets for our products. The restructure of this segment of the business has it well placed to take advantage of opportunities that may arise, and to improve our capacity to service current and future customers.

New Zealand Segment Sales to external customers Segment EBIT	3,084 116	4,529 551	(1,445) (435)	(31.9)%
				(78.9)%

Ambertech’s New Zealand business segment distributes of a wide range of quality products for both professional and consumer markets in New Zealand. The result for the year ended 30 June 2009 reflects a softening of project work during the financial year. We continue to invest in growing the range of consumer product offerings to complement our strong track records of sales in the broadcast and post production markets.

Ambertech Limited ACN 079 080 158 Preliminary Final Report ‐ Year Ended 30 June 2009

Outlook

Early trading results for the 2010 financial year have been encouraging. Our lifestlye entertainment segment continues to evaluate ways of improving market share and margins. Our professional and broadcast markets have good clarity of project work over the coming 12 months and remain positive about our strong product offering. In New Zealand we are continuing to invest in broadening our areas of expertise.

Our forecasts for the year ending 30 June 2010 are for continued growth in revenue and improvement in margins and profits. The capital nature of our professional segment and the uncertainty of timing of these major projects creates difficulty in accurately forecasting the results for any accounting period. However, Ambertech’s management believes the company is well positioned to achieve medium term growth targets of 5%‐10% per annum, noting that there may be period‐to‐period fluctuation in results due to the level of sales in the professional segment.

To assist in achieving our goals we are constantly evaluating potential new agencies and or acquisitions.

On behalf of the Board of Ambertech Limited

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Peter Wallace Chairman Sydney 31 August 2009.