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AMBERTECH LIMITED — Interim / Quarterly Report 2012
Aug 28, 2012
64378_rns_2012-08-28_fb61eef5-16fa-4898-8179-95c8af74de0a.pdf
Interim / Quarterly Report
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Ambertech Limited and Controlled Entities
ACN 079 080 158
Appendix 4E – Preliminary Final Report Year Ended 30 June 2012
For Immediate Release 29 August 2012
Results for Announcement to the Market Further Explanation of the Results
Outlook for the business
Ambertech Limited ACN 079 080 158. Corporate Media Contact: Robert Glasson (02) 9998 7600 email: [email protected] web: www.ambertech.com.au
Results for Announcement to the Market
For the year ended 30 June 2012
Key Information
The following information is provided to the ASX under listing rule 4.3A.
| 2012 | 2011 | Movement | Up/(Down) | |
|---|---|---|---|---|
| $’000 | $’000 | $’000 | % | |
| Revenuefrom ordinary activities | 51,407 | 66,703 | (15,296) | (22.9) |
| Profit after income tax for the period attributable to members | (4,693) | 126 | (4,819) | (3,824.6) |
Dividends
The Board has announced that no final dividend will be paid in respect of the year ended 30 June 2012.
Dividend History
There were no dividends paid or declared during the year ended 30 June 2012.
| 2012 | 2011 | |
|---|---|---|
| Net Tangible Assetsper security | 49.9c | 55.4c |
Further Explanation of the results follows in the attached commentary.
Ambertech Limited ACN 079 080 158. Corporate Media Contact: Robert Glasson (02) 9998 7600 email: [email protected] web: www.ambertech.com.au
Consolidated Statement of Comprehensive Income
| 2012 | 2011 | |
|---|---|---|
| $'000 | $'000 | |
| Revenue | 51,407 | 66,703 |
| Cost of sales | (36,196) | (47,541) |
| Gross profit | 15,211 | 19,162 |
| Other income | 19 | - |
| Employee benefits expense | (9,363) | (11,206) |
| Distribution costs | (1,314) | (1,483) |
| Marketing costs | (1,704) | (1,551) |
| Premises costs | (1,954) | (2,162) |
| Depreciation and amortisation expenses | (245) | (272) |
| Finance costs | (438) | (461) |
| Travel costs | (552) | (648) |
| Restructure costs | (555) | - |
| Impairment of goodwill | (2,970) | - |
| Relocation expenses | (274) | - |
| Other expenses | (1,108) | (1,221) |
| (Loss) / Profit before income tax expense | (5,247) | 158 |
| Income tax benefit / (expense) | 554 | (32) |
| (Loss) / Profit for the year | (4,693) | 126 |
| Other comprehensive income | ||
| Exchange differences on translation of foreign operations | 12 | (52) |
| Total comprehensive income for the year | (4,681) | 74 |
| Earnings per share | ||
| Basic earnings per share (cents) | (15.4) | 0.4 |
| Diluted earnings per share (cents) | (15.4) | 0.4 |
The consolidated statement of comprehensive income is to be read in conjunction with the attached notes.
Ambertech Limited ACN 079 080 158. Corporate Media Contact: Robert Glasson (02) 9998 7600 email: [email protected] web: www.ambertech.com.au
Consolidated Statement of Financial Position
| Consolidated Statementof Financial Position | ||
|---|---|---|
| 2012 | 2011 | |
| $'000 | $'000 | |
| ASSETS | ||
| CURRENT ASSETS | ||
| Cash and cash equivalents | 2,495 | 3,134 |
| Trade and other receivables | 6,841 | 13,128 |
| Current tax assets | 133 | 326 |
| Inventories | 12,550 | 13,571 |
| TOTAL CURRENT ASSETS | 22,019 | 30,159 |
| NON-CURRENT ASSETS | ||
| Plant and equipment | 1,969 | 380 |
| Intangible assets | 45 | 3,054 |
| Deferred tax assets | 1,428 | 866 |
| TOTAL NON-CURRENT ASSETS | 3,442 | 4,300 |
| TOTAL ASSETS | 25,461 | 34,459 |
| LIABILITIES | ||
| CURRENT LIABILITIES | ||
| Trade and other payables | 4,839 | 9,493 |
| Other financial liabilities | 3,427 | 3,000 |
| Provisions | 910 | 1,128 |
| TOTAL CURRENT LIABILITIES | 9,176 | 13,621 |
| NON-CURRENT LIABILITIES | ||
| Provisions | 801 | 804 |
| Other financial liabilities | 121 | - |
| Deferred tax liabilities | 58 | 52 |
| TOTAL NON-CURRENT LIABILITIES | 980 | 856 |
| TOTAL LIABILITIES | 10,156 | 14,477 |
| NET ASSETS | 15,305 | 19,982 |
| EQUITY | ||
| Share capital | 11,138 | 11,138 |
| Reserves | (118) | (116) |
| Retained earnings | 4,285 | 8,960 |
| TOTAL EQUITY | 15,305 | 19,982 |
The consolidated statement of financial position is to be read in conjuntion with the attached notes.
Ambertech Limited ACN 079 080 158. Corporate Media Contact: Robert Glasson (02) 9998 7600 email: [email protected] web: www.ambertech.com.au
Consolidated Statement of Changes in Equity
| Foreign | |||||
|---|---|---|---|---|---|
| Currency | |||||
| Share | Option | Translation | Retained | ||
| Capital | Reserve | Reserve | Earnings | Total Equity | |
| $'000 | $'000 | $'000 | $'000 | $'000 | |
| Economic Entity | |||||
| Balance as at 30 June 2010 | 11,146 | 86 | (92) | 8,917 | 20,057 |
| Total comprehensive income for the year | - | - | (52) | 126 | 74 |
| Transactions with equity holders: | |||||
| Shares bought back during the year | (8) | - | - | - | (8) |
| Costs of share based payments | - | (58) | - | 70 | 12 |
| Dividends | - | - | - | (153) | (153) |
| Balance as at 30 June 2011 | 11,138 | 28 | (144) | 8,960 | 19,982 |
| Total comprehensive income for the year | - | - | 12 | (4,693) | (4,681) |
| Transactions with equity holders: | |||||
| Shares bought back during the year | - | - | - | - | - |
| Costs of share based payments | (14) | - | 18 | 4 | |
| Dividends | - | - | - | - | - |
| - | (14) | - | 18 | 4 | |
| Balance as at 30 June 2012 | 11,138 | 14 | (132) | 4,285 | 15,305 |
The consolidated statement of changes in equity is to be read in conjunction with the attached notes.
Ambertech Limited ACN 079 080 158. Corporate Media Contact: Robert Glasson (02) 9998 7600 email: [email protected] web: www.ambertech.com.au
Consolidated statement of Cash Flows
| Consolidated statementof Cash Flows | ||
|---|---|---|
| 2012 | 2011 | |
| $'000 | $'000 | |
| CASH FLOWS FROM OPERATING ACTIVITIES | ||
| Receipts from customers | 62,649 | 67,397 |
| Payments to suppliers and employees | (58,236) | (59,834) |
| Interest received | 52 | 20 |
| Interest and other costs of finance paid | (438) | (461) |
| Income taxes paid | (132) | (538) |
| Income taxes refunded | 325 | 361 |
| Goods and services tax remitted | (3,460) | (4,822) |
| Net cash provided by operating activities | 760 | 2,123 |
| CASH FLOWS FROM INVESTING ACTIVITIES | ||
| Payments for plant and equipment | (1,785) | (82) |
| Payments for intangible assets - website | (13) | (125) |
| Net cash (used in) investing activities | (1,798) | (207) |
| CASH FLOWS FROM FINANCING ACTIVITIES | ||
| Dividends paid to shareholders | - | (153) |
| Proceeds from borrowings | 400 | - |
| Payments for shares bought back | - | (8) |
| Repayment of borrowings | - | (1,700) |
| Net cash provided by / (used in) financing activities | 400 | (1,861) |
| Net (decrease)/increase in cash and cash equivalents held | (638) | 55 |
| Cash and cash equivalents at beginning of year | 3,134 | 3,090 |
| Effect of exchange rate changes on the balance of cash and cash equivalents held | ||
| in foreign currencies at the beginning of the financial year | (1) | (11) |
| Cash and cash equivalents at end of year | 2,495 | 3,134 |
The consolidated statement of cash flows is to be read in conjunction with the attached notes.
Ambertech Limited ACN 079 080 158. Corporate Media Contact: Robert Glasson (02) 9998 7600 email: [email protected] web: www.ambertech.com.au
Notes to the Consolidated Financial Statements
2012 2011 $'000 $'000
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.
These consolidated preliminary financial statements should be read in conjunction with the 2011 Annual Report, the December 2011 half year report and any announcement by Ambertech Limited in accordance with the continuous disclosure obligations arising under the Corporations Act 2001.
| 2. Revenue | ||
|---|---|---|
| Sale of goods and services | 51,355 | 66,683 |
| Interest received | 52 | 20 |
| Total | 51,407 | 66,703 |
| Other income | ||
| - Net foreign exchange gains |
19 | - |
| 3. Expenses | ||
| Additional information on the nature of expenses | ||
| Inventories | ||
| Cost of sales | 36,196 | 47,541 |
| Movement in provision for inventory obsolescence | 191 | 18 |
| Employee benefits expense | ||
| Salaries and wages | 8,907 | 10,704 |
| Employee termination expense | 456 | 502 |
| 9,363 | 11,206 | |
| Depreciation | ||
| Plant and equipment | 123 | 139 |
| Furniture and fittings | 29 | 26 |
| Leasehold improvements | 34 | 66 |
| Leased plant and equipment | 7 | - |
| 193 | 231 | |
| Amortisation | ||
| Website costs | 52 | 41 |
| Bad and doubtful debts | 16 | 163 |
| Rental expense on operating leases | ||
| Minimum lease payments | 1,193 | 1,315 |
| Net foreign exchange losses | - | 57 |
| Net loss on disposal of plant and equipment | 3 | 1 |
| Net fair value (loss) / gain on derivative financial instruments - forward | ||
| exchange contracts | (18) | 45 |
Ambertech Limited ACN 079 080 158. Corporate Media Contact: Robert Glasson (02) 9998 7600 email: [email protected] web: www.ambertech.com.au
Notes to the Consolidated Financial Statements
| Notes to the Consolidated Financial Statements | ||
|---|---|---|
| 2012 | 2011 | |
| $'000 | $'000 | |
| 4. Cash Flow Information | ||
| (i) Cash and cash equivalents | ||
| Cash and cash equivalents included in the statement of cash flows comprise of the | ||
| following amounts: | ||
| Cash on hand | 3 | 3 |
| At call deposits with financial institutions | 2,492 | 3,131 |
| 2,495 | 3,134 | |
| (ii) Reconciliation of net cash provided by / (used in) operating activities to profit | ||
| or loss after income tax | ||
| (Loss) / Profit for the year | (4,693) | 126 |
| Depreciation and amortisation | 245 | 272 |
| Impairment of goodwill | 2,970 | - |
| Net loss on disposal of plant and equipment | 3 | 1 |
| Foreign exchange (gains) / losses | (19) | 57 |
| Non-cash share based payments | 4 | 12 |
| Changes in operating assets and liabilities | ||
| Decrease/(Increase) in trade and other receivables | 6,291 | (5,344) |
| Decrease in inventories | 1,032 | 2,480 |
| Decrease in tax receivable | 311 | 368 |
| (Decrease)/Increase in payables | (4,758) | 4,173 |
| Increase in lease liabilities | 149 | - |
| (Decrease)/Increase in provisions | (221) | 160 |
| (Increase) in deferred taxes | (554) | (182) |
| Net cash provided by operating activities | 760 | 2,123 |
| (iii) Non Cash Financing and Investing Activities |
There were no non-cash financing or investing activities during the financial year.
Ambertech Limited ACN 079 080 158. Corporate Media Contact: Robert Glasson (02) 9998 7600 email: [email protected] web: www.ambertech.com.au
Notes to the Consolidated Financial Statements
| Notes to the Consolidated Financial Statements | ||
|---|---|---|
| 2012 | 2011 | |
| 5. Earnings Per Share | ||
| Basic earnings per share (cents) | (15.4) | 0.4 |
| Weighted average number of ordinary shares (number) | 30,573,181 | 30,590,832 |
| Earnings used to calculate basic earnings per share ($) | (4,693,000) | 126,000 |
| Diluted earnings per share (cents) | (15.4) | 0.4 |
| Weighted average number of ordinary shares (number) | 30,573,181 | 30,590,832 |
| Earnings used to calculate diluted earnings per share ($) | (4,693,000) | 126,000 |
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.
Ambertech Limited ACN 079 080 158. Corporate Media Contact: Robert Glasson (02) 9998 7600 email: [email protected] web: www.ambertech.com.au
Further Explanation of the results
For the year ended 30 June 2012
Segment Results
| Lifestyle Entertainment | Lifestyle Entertainment | Lifestyle Entertainment | Professional | Professional | New Zealand | New Zealand | |||
|---|---|---|---|---|---|---|---|---|---|
| 2012 | 2011 | Change | 2012 | 2011 | Change | 2012 | 2011 | Change | |
| up/(down) | up/(down) | up/(down) | |||||||
| $’000 | $’000 | % | $’000 | $’000 | % | $’000 | $’000 | % | |
| Sales revenue | 29,342 | 38,385 | (23.6) | 19,516 | 26,328 | (25.6) | 2,497 | 2,060 | 21.2 |
| Underlying EBIT | (1,068) | 306 | (449.0) | 57 | 846 | (93.3) | 87 | (164) | 153.0 |
| Impairment charge | (1,963) | - | - | (963) | - | - | (44) | - | - |
| Segment EBIT | (3,031) | 306 | (1090.5) | (906) | 846 | (207.1) | 43 | (164) | 126.2 |
Significant change and multiple challenges were the overriding themes of the 2011-12 financial year for Ambertech, and this is certainly reflected in the results being reported. The major factors that impacted the sales revenue for the year were:
-
The compounding impact of issues relating to supply, quality control and feature set of a major product line during the year, outside of our control. These issues contributed to market share loss and margin erosion for our lifestyle segment. These issues have now been addressed;
-
Continued caution with discretionary spend of retail consumers; and
-
Deferral in capital equipment spending at major Australian broadcasters during the year.
The underlying results of the business included the following one off costs:
-
Costs associated with the move of Ambertech’s head office of $274,000.
-
Restructure costs for the financial year of $555,000, including $465,000 incurred in our lifestyle entertainment segment.
-
Bad debt incurred as a result of the receivership of the WOW Audio Visual Superstores of approximately $150,000.
Further to the underlying results, and on the basis of results provided by financial modeling a charge of $2.97M has been raised to reflect the Board’s view that goodwill previously recognised in the assets of Ambertech has been fully impaired.
Despite the difficult trading, Ambertech remained operating cash flow positive for the financial year.
Ambertech Limited ACN 079 080 158. Corporate Media Contact: Robert Glasson (02) 9998 7600 email: [email protected] web: www.ambertech.com.au
Outlook for the business
The 2012-13 financial year has begun with some pleasing results across our traditional market segments. As a result, we are cautiously optimistic that we can deliver on our business strategies, which are focused on returning positive results for our investors in the short term.
At this early stage we are unable to provide guidance on potential results with any certainty; however we expect to be able to update investors by the time of holding the company’s AGM.
The Board and management remain focused on utilizing the traditional strengths of the Ambertech business as a technical distributor to bring new products and brands to market and to redefine the methods and channels in which the business operates. These initiatives are underway and are the key drivers of future revenue and profit growth.
On behalf of the Board of Ambertech Limited
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Robert Glasson
CFO, Company Secretary Sydney, 29 August 2012
Ambertech Limited ACN 079 080 158. Corporate Media Contact: Robert Glasson (02) 9998 7600 email: [email protected] web: www.ambertech.com.au