AMBERTECH LIMITED — Interim / Quarterly Report 2013

Feb 11, 2013

12 February 2013

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Company Announcements Office Australian Stock Exchange 4[th] Floor, 20 Bridge Street Sydney NSW

Dear Sir/Madam

Please find following the Appendix 4D and Half‐Year Financial Report of Ambertech Limited for the period ended 31 December 2012.

Kind regards

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Robert Glasson Company Secretary

Ambertech Limited ACN 079 080 158 Unit 1, 2 Daydream Street, Warriewood NSW 2102 Tel: 02 9998 7600 Fax: 02 9999 0770 email: rglasson@ambertech.com.au Web: www.ambertech.com.au

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Ambertech Limited and Controlled Entities

ACN 079 080 158

Appendix 4D and Half Year Report Period Ended 31 December 2012

For Immediate Release 12 February 2013

Results for Announcement to the market Further Explanation of the Results Outlook for the business Financial Data Half Year Financial Report

Ambertech Limited ACN 079 080 158 Unit 1, 2 Daydream Street, Warriewood NSW 2102 Tel: 02 9998 7600 Fax: 02 9999 0770 email: rglasson@ambertech.com.au Web: www.ambertech.com.au

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Results for Announcement to the Market

For the period ended 31 December 2012

Key Information

The following information is provided to the ASX under listing rule 4.2A.

	31 Dec 12	31 Dec 11	Movement	Movement
	$’000	$’000	$’000	%
Revenuefrom ordinary activities	27,993	26,882	1,111	4.1
Profit/(loss) after income tax for the period attributable to
members	288	(262)	550	209.9
Dividend History

The Board has advised that there will be no interim dividend in respect of the period ended 31 December 2012.

respect of the period ended 31 December 2012.
Interim dividends
In respect of the half‐year ended 31 December 2012	Nil		100%
In respect of the half‐year ended 31 December 2011	Nil		100%
Final Dividends
In respect of the year ended 30 June 2012	Nil		100%
In respect of the year ended 30 June 2011	Nil		100%
Key Ratios	31 Dec 12	31 Dec 11
Net tangible assets per security	51.0c	54.5c

Further Explanation of the results follows in the attached commentary and Half Year Financial Report

Ambertech Limited ACN 079 080 158 Unit 1, 2 Daydream Street, Warriewood NSW 2102 Tel: 02 9998 7600 Fax: 02 9999 0770 email: rglasson@ambertech.com.au Web: www.ambertech.com.au

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Further Explanation of the Results

For the period ended 31 December 2012

Segment Results

Lifestyle Entertainment Segment

Sales revenue down 11.7% to $14,526,000 (Dec 11: $16,452,000). EBIT up 203.6% to $171,000 (Dec 11: $(165,000)).

Ambertech’s lifestyle entertainment segment distributes leading brands through a variety of channels. During the period under review we continued our ongoing evaluation of agencies to ensure we are focused on core and growing brands. Whilst we are reporting lower revenues compared to the previous corresponding half year period, the impact of prior period restructures has allowed us to return this business unit to a positive EBIT result for the period ended 31 December 2012.

Professional Segment

Sales revenue up 30.1% to $11,874,000 (Dec 11: $9,129,000). EBIT up 602.2% to $457,000 (Dec 11: $(91,000)).

Ambertech’s professional segment continues to enhance its reputation as a preferred supplier of high technology equipment in Australia. During the period under review this business unit has won a number of large broadcast contracts, and the sales and EBIT results for the period reflect those successes.

New Zealand Segment

Sales revenue up 18.5% to $1,669,000 (Dec 11: $1,409,000). EBIT down 93.8% to $11,000 (Dec 11: $177,000).

Ambertech’s has focused on expanding our product offerings in New Zealand and leveraging more off our Australian operations in order to restore profitability to this segment. During the period under review we have had success in adding some key agencies, and invested in this business to drive growth in sales and EBIT in future periods.

Outlook for the business

The Board and management of Ambertech continue to focus on returning the business to more consistent revenue and profit results. During the period under review we have returned the business to profits. During the second half of the financial year we will continue to fine‐tune aspects of the business to facilitate growth in existing and new markets.

On behalf of the Board

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Robert Glasson Company Secretary

Ambertech Limited ACN 079 080 158 Unit 1, 2 Daydream Street, Warriewood NSW 2102 Tel: 02 9998 7600 Fax: 02 9999 0770 email: rglasson@ambertech.com.au Web: www.ambertech.com.au

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Financial Data

Financial Data
	31 Dec 12	31 Dec 11	Movement
Sales Revenue	$’000	$’000	$’000	%
Lifestyle Entertainment	14,526	16,452
Professional	11,874	9,129
New Zealand	1,669	1,409
Inter‐segment	(93)	(136)
Total Sales Revenue	27,976	26,854	1,111	4.1
Segment Result
Lifestyle Entertainment	171	(165)
Professional	457	(91)
New Zealand	11	177
Unallocated/Corporate	(143)	(120)
Earnings before interest and tax (EBIT)	496	(199)	695	349.2
Net interest	(206)	(186)
Net profit/(loss) before tax	290	(385)	675	170.1
Income tax expense	(2)	123
Netprofit for theperiod	288	(262)	550	209.9
Key Ratios
EBIT/Sales	1.8%	(0.7)%
Inventory/Sales	26.2%	28.9%
Receivables/Sales	16.7%	17.7%
Basic earningsper share	0.9c	(0.9)c

For further information, please contact our Company Secretary, Mr Robert Glasson.

Ambertech Limited ACN 079 080 158 Unit 1, 2 Daydream Street, Warriewood NSW 2102 Tel: 02 9998 7600 Fax: 02 9999 0770 email: rglasson@ambertech.com.au Web: www.ambertech.com.au

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AMBERTECH LIMITED AND CONTROLLED ENTITIES ACN 079 080 158

HALF‐YEAR FINANCIAL REPORT PERIOD ENDED 31 DECEMBER 2012

AMBERTECH LIMITED AND CONTROLLED ENTITIES ACN 079 080 158

DIRECTORS' REPORT FOR THE HALF‐YEAR ENDED 31 DECEMBER 2012

Your directors submit the financial report of the consolidated entity comprising Ambertech Limited and the entities it controlled for the half‐year ended 31 December 2012.

Directors

The names of the directors who held office during or since the end of the half‐year:

Peter Francis Wallace Peter Andrew Amos Edwin Francis Goodwin Thomas Robert Amos David Rostil Swift

Review of Operations

A review of the operations of the consolidated entity during the half‐year and the results of these operations are set out in the attached Appendix 4D.

Results of Operations

The consolidated result after providing for income tax for the period ended 31 December 2012 was $288,000, up 209.9% on the previous corresponding period. Revenue for the period was $27,993,000, up 4.1% on the previous corresponding period. Further information on the operating results are included in the attached Appendix 4D.

Dividend

There were no dividends paid or declared during the half‐year ended 31 December 2012.

Rounding of Amounts

The company is an entity to which Class Order 98/100 applies and, in accordance with this class order, amounts in this report and the financial report have been rounded off to the nearest thousand dollars unless otherwise indicated.

Auditor's Independence Declaration

The auditor's independence declaration under section 307C of the Corporations Act 2001 is set out on page 2.

Signed in accordance with a resolution of directors.

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P F Wallace Chairman of Directors

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P A Amos Managing Director

Dated this 12th day of February 2013 Sydney

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AMBERTECH LIMITED AND CONTROLLED ENTITIES

ACN 079 080 158

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE HALF‐YEAR ENDED 31 DECEMBER 2012

	31‐Dec‐12	31‐Dec‐11
	$'000	$'000
Revenues	27,993	26,882
Cost of sales	(19,929)	(18,576)
Gross Profit	8,064	8,306
Other Income	81	‐
Employee benefits expense	(4,423)	(4,833)
Distribution costs	(657)	(717)
Marketing costs	(708)	(923)
Premises costs	(920)	(949)
Travel costs	(271)	(301)
Depreciation and amortisation expenses	(179)	(105)
Finance costs	(224)	(214)
Other expenses	(473)	(649)
Profit/(Loss) before income tax	290	(385)
Income tax benefit/(expense)	(2)	123
Profit/(Loss) after income tax expense for the half‐year	288	(262)
Other comprehensive income
Exchange differences on translation of foreign operations	12	(16)
Total comprehensive income for the half‐year	300	(278)
Earnings per share
Basic earnings per share (cents)	0.9	(0.9)
Diluted earnings per share (cents)	0.9	(0.9)

The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes.

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AMBERTECH LIMITED AND CONTROLLED ENTITIES

ACN 079 080 158

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

FOR THE HALF‐YEAR ENDED 31 DECEMBER 2012

	31‐Dec‐12	30‐Jun‐12
	$'000	$'000
ASSETS
CURRENT ASSETS
Cash and cash equivalents	1,370	2,495
Trade and other receivables	9,340	6,841
Current tax assets	133	133
Inventories	14,664	12,550
TOTAL CURRENT ASSETS	25,507	22,019
NON‐CURRENT ASSETS
Plant and equipment	1,916	1,969
Intangible assets	26	45
Deferred tax assets	1,425	1,428
TOTAL NON‐CURRENT ASSETS	3,367	3,442
TOTAL ASSETS	28,874	25,461
LIABILITIES
CURRENT LIABILITIES
Trade and other payables	7,538	4,839
Other financial liabilities	3,934	3,427
Provisions	817	910
TOTAL CURRENT LIABILITIES	12,289	9,176
NON‐CURRENT LIABILITIES
Provisions	818	801
Other financial liabilities	106	121
Deferred tax liabilities	56	58
TOTAL NON‐CURRENT LIABILITIES	980	980
TOTAL LIABILITIES	13,269	10,156
NET ASSETS	15,605	15,305
EQUITY
Share capital	11,138	11,138
Reserves	(106)	(118)
Retained earnings	4,573	4,285
TOTAL EQUITY	15,605	15,305

The above consolidated statement of financial position should be read in conjunction with the accompanying notes.

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AMBERTECH LIMITED AND CONTROLLED ENTITIES

ACN 079 080 158

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE HALF‐YEAR ENDED 31 DECEMBER 2012

			Foreign
			Currency
	Share	Option	Translation	Retained	Total
	Capital	Reserve	Reserve	Earnings	Equity
	$'000	$'000	$'000	$'000	$'000
Balance as at 1 July 2012	11,138	‐	(118)	4,285	15,305
Profit for the half‐year	‐	‐	‐	288	288
Exchange differences on translation of foreign operations	‐	‐	12	‐	12
Total comprehensive income for the half‐year	‐	‐	12	288	300
Transactions with equity holders:
Costs of share basedpayments	‐	‐	‐	‐	‐
Balance as at 31 December 2012	11,138	‐	(106)	4,573	15,605
Balance as at 1 July 2011	11,138	28	(144)	8,960	19,982
Loss for the half‐year	‐	‐	‐	(262)	(262)
Exchange differences on translation of foreign operations	‐	‐	(16)	‐	(16)
Total comprehensive income for the half‐year	‐	‐	(16)	(262)	(278)
Transactions with equity holders:
Costs of share basedpayments	‐	‐	‐	‐	‐
Balance as at 31 December 2011	11,138	28	(160)	8,698	19,704

The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

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AMBERTECH LIMITED AND CONTROLLED ENTITIES ACN 079 080 158

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE HALF‐YEAR ENDED 31 DECEMBER 2012

	31‐Dec‐12	31‐Dec‐11
	$'000	$'000
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers	28,201	33,342
Payments to suppliers and employees	(27,532)	(32,878)
Interest received	18	27
Interest and other costs of finance paid	(224)	(214)
Income taxes paid	‐	(132)
Goods and services tax remitted	(1,984)	(1,799)
Net cash (used in) operating activities	(1,521)	(1,654)
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for purchase of plant and equipment	(107)	(508)
Payments for intangible assets ‐ web site costs	‐	(13)
Net cash (used in) investing activities	(107)	(521)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings	503	850
Repayment of borrowings	‐	‐
Net cash provided by financing activities	503	850
Net (decrease) in cash and cash equivalents held	(1,125)	(1,325)
Cash and cash equivalents at beginning of period	2,495	3,134
Effect of exchange rate changes on cash and cash equivalents	‐	(3)
Cash and cash equivalents at end of period	1,370	1,806

The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.

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AMBERTECH LIMITED AND CONTROLLED ENTITIES

ACN 079 080 158

NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE HALF‐YEAR ENDED 31 DECEMBER 2012

NOTE 1: STATEMENT OF COMPLIANCE

This general purpose interim financial report for the half‐year ended 31 December 2012 has been prepared in accordance with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Act 2001.

This interim financial report does not include all the notes of a type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the most recent annual financial report for the year ended 30 June 2012 and any public announcements made by Ambertech Limited during the interim financial reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.

NOTE 2: SIGNIFICANT ACCOUNTING POLICIES

The accounting policies applied in preparing this financial report for the half‐year ended 31 December 2012 are consistent with those applied in the annual financial report for the year ended 30 June 2012, except as set out below:

Accounting Standards not Previously Applied

The consolidated entity has adopted all of the new, revised or amending Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period.

Any new, revised or amending Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.

Any significant impact on the accounting policies of the consolidated entity from the adoption of these Accounting Standards and Interpretations are disclosed in the relevant accounting policy. The adoption of these Accounting Standards and Interpretations did not have any significant impact on the financial performance or position of the consolidated entity.

The following Accounting Standards and Interpretations are most relevant to the consolidated entity:

• (i) AASB 2011‐9 Amendments to Australia Accounting Standards – Presentation of Items of Other Comprehensive Income

The consolidated entity has applied AASB 2011‐9 amendments from 1 July 2012.

The amendments have been released to align the presentation of items of other comprehensive income (OCI) in IFRS with US GAAP. These include various name changes to the statement of comprehensive income, and the requirement to classify items of OCI into two groups, (i) items that can be reclassified to profit or loss in subsequent periods; and (ii) items that can never be reclassified to profit or loss in subsequent periods.

NOTE 3: EVENTS SUBSEQUENT TO REPORTING DATE

Since the end of the financial year, no matters have arisen which significantly affected or may significantly affect the operations of the economic entity, the results of those operations or the state of affairs of the economic entity in future financial years.

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AMBERTECH LIMITED AND CONTROLLED ENTITIES

ACN 079 080 158

NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE HALF‐YEAR ENDED 31 DECEMBER 2012

NOTE 4: DIVIDENDS

	31‐Dec‐12	31‐Dec‐11
	$'000	$'000
Recognised as distributions to equity holders
There was no fully franked final dividend paid during the half‐year ended
31 December 2012.	‐	‐

Declared before the interim report is authorised for issue but not recognised as distributions to equity holders at the end of the period

‐ ‐ Fully franked interim dividend

NOTE 5: SEGMENT REPORTING

Total segment revenue Inter‐segment revenue	Professional Lifestyle Entertainment New Zealand Eliminations Total 31‐Dec‐12 31‐Dec‐12 31‐Dec‐12 31‐Dec‐12 31‐Dec‐12 $'000 $'000 $'000 $'000 $'000 11,849 14,504 1,623 ‐ 27,976 25 22 46 (93) ‐	Professional Lifestyle Entertainment New Zealand Eliminations Total 31‐Dec‐12 31‐Dec‐12 31‐Dec‐12 31‐Dec‐12 31‐Dec‐12 $'000 $'000 $'000 $'000 $'000 11,849 14,504 1,623 ‐ 27,976 25 22 46 (93) ‐
Revenue from external customers	11,874 14,526 1,669 (93) 27,976
Result EBIT Net interest and finance costs Segment EBIT Unallocated/corporate result	457 171 11 ‐	639
		(143)
		496 (206)
Loss before income tax Income tax Expense		290 (2)
Profit for the half‐year		288

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AMBERTECH LIMITED AND CONTROLLED ENTITIES

ACN 079 080 158

NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE HALF‐YEAR ENDED 31 DECEMBER 2012

NOTE 5: SEGMENT REPORTING (continued)

Total segment revenue Inter‐segment revenue	Professional Lifestyle Entertainment New Zealand Eliminations Total 31‐Dec‐11 31‐Dec‐11 31‐Dec‐11 31‐Dec‐11 31‐Dec‐11 $'000 $'000 $'000 $'000 $'000 8,993 16,452 1,409 ‐ 26,854 136 ‐ ‐ (136) ‐	Professional Lifestyle Entertainment New Zealand Eliminations Total 31‐Dec‐11 31‐Dec‐11 31‐Dec‐11 31‐Dec‐11 31‐Dec‐11 $'000 $'000 $'000 $'000 $'000 8,993 16,452 1,409 ‐ 26,854 136 ‐ ‐ (136) ‐
Revenue from external customers	9,129 16,452 1,409 (136) 26,854
Result EBIT Segment EBIT Net interest and finance costs Unallocated/corporate result	(91) (165) 177 ‐	(79)
		(120)
		(199) (186)
Income tax expense Loss before income tax		(385) 123
Loss for the half‐year		(262)

		Lifestyle		Unallocated/
	Professional	Entertainment	New Zealand	Corporate	Total
	$'000	$'000	$'000	$'000	$'000
Total Segment Assets
31 December 2012	9,160	14,989	1,679	3,046	28,874
30 June 2012	6,407	13,835	1,295	3,924	25,461

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AMBERTECH LIMITED AND CONTROLLED ENTITIES

ACN 079 080 158

DIRECTORS' DECLARATION

In the directors' opinion:

• the attached financial statements and notes thereto comply with the Corporations Act 2001 , Australian Accounting Standard AASB 134 ' Interim Financial Reporting ', the Corporate Regulations 2001 and other mandatory professional reporting requirements;

• the attached financial statements and notes thereto give a true and fair view of the consolidated entity's financial position as at 31 December 2012 and of its performance for the financial half‐year ended on that date; and

• there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.

Signed in accordance with a resolution of the directors made pursuant to section 303(5) of the Corporations Act 2001

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P F Wallace P A Amos Chairman of Directors Managing Director

Dated this 12th day of February 2013 Sydney

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