ANNUAL REPORT
30 JUNE 2017
Mission Statement
Ambertech Limited is an acknowledged leader in the
identification, supply and distribution of advanced technologies
for the Professional and Consumer audio/visual markets within
the Oceania region.
Our purpose is to add significant operational value by
developing and strengthening customer relationships,
expanding horizons of opportunity and delivering strong and
continuous financial growth to stake holders through our
proven ability to integrate, implement and commercialise
existing and emerging technologies.
Contents
1.
Shareholders Letter
2. Our Business and Brands
3. Media Systems and Professional
4. Lifestyle Entertainment
5. New Zealand
6. Financial Report
7. Shareholder Information
8. Corporate Directory
Shareholders Letter
Dear Shareholders
On behalf of your Board and executive management we would like to present you with your 2017 Annual Report.
In recent reporting periods, we have been working hard to return the business to sustainable profits.
Unfortunately, the 2017 financial year saw us report a loss as a result of some mixed results across our various
business units. Despite this, the Board and management of Ambertech believe the strategies in place are
continuing to strengthen our presence in the markets in which we operate, and that the long-term goals of the
business will be achieved.
Our Lifestyle Entertainment Segment reported a reduced EBIT result despite our ongoing successes with
products sold into the major retail market. Whilst revenue derived from sales to the major retailers remained
strong, our dealer channel in the residential installation market experienced difficult trading conditions. These
conditions would appear to be influenced by concerns over domestic housing prices, historically low household
disposable income and concerns over international politics.
Whilst the residential installation market was difficult, we are now seeing some gains from the introduction of
new brands into the commercial installation market and we are confident of further growth in this area in coming
reporting periods.
Results from our Professional Segment were impacted by reduced sales activity in our media systems group.
Projects expected to be completed with a major broadcaster were put on hold and this deferred any revenue
and profits from these projects into future reporting periods. Management continues to focus on growth areas
including law enforcement, defence and mining with communications systems. The professional products area
continues to be a consistent performer.
Our New Zealand group had a difficult period and returned a loss for the 2017 financial year. Our operations
continue to be refined to return this group to profits.
The Board of Ambertech are, collectively, substantial shareholders in Ambertech and their interests continue
to be aligned with the interests of all shareholders. The Board would like to thank their skilled and dedicated
management team and staff for their support, and believe they will be integral in achieving the strategic
objectives of Ambertech in the future.
Peter Wallace
Chairman
Peter Amos
Managing Director
Our Business
Media Systems
The Media Systems team works with traditional television and radio broadcast industry as
well as new media partners in diverse industries such as law enforcement and defence,
sport, large scale events and education. From content creation and acquisition, delivery,
processing and asset management, Amber Technology can offer turnkey packages for
creating, delivering and managing all types of media content.
Professional Products
Amber’s Professional Products group has a strong reputation as a preferred supplier of
high technology equipment for live sound in many different industry segments, including
touring artists, live stage shows, film and television productions, broadcast news and
sports, through to smaller sound installations in education facilities, houses of worship
and smaller venues.
Integrated Solutions
The Integrated Solutions team offers cohesive systems for the custom installation
and professional installation markets, with a portfolio of high end audio visual and
infrastructure brands for residential and commercial installation projects. Customers
typically engage the services of a professional installer for a full turnkey solution.
Major Retail
The Major Retail division works with home electronics retailers nationally, mass markets
retail chains and independent specialist outlets to supply home entertainment solutions
for consumers in the residential market. Our focus is on offering a comprehensive
selection of high end audio visual and accessory brands for end users.
Our Brands
AC Infinity
EMC Dell
Niveo Professional
Telestream
Accent Audio
Emotion Systems
NTi Audio
T Bone
Accent Visual
EVS
NuVo
T-Rex Effects
Accent Acoustics
Energizer
Nugen Audio
TrickleStar
Advanced Network
Telemetry
Ambertec
Apart Audio
Ateme
AudioQuest
Avid
Aviwest
BATS Wireless
BeeWi
Blue Lucy
Blue Microphones
Canare
Contacta
CP Cases
Cioks
Contacta
Cordial
Digital Projection
DPA Microphones
Dynaudio Professional
David Horn
Communications
Framus Guitars
One For All
Troll Systems
GB Labs
Gefen
Haivision
Hercules
iPort
Integra
Optoma
Onkyo
Panasonic
Plura
Van Damme
Videssence
Vinten
Vinten Ramadec
Primacoustic
Warwick Basses
Proel
Well Av
Jet City Amplification
Quantum
JTS Microphones
Rean
Knoll
Radial Engineering
Launchport
Solid State Logic
Lenco
Leon Speakers
Sonance
Sonarray
Liberty
Lumens
LunaStone
Litepanels
Middle Atlantic
MP Antennas
Nexidia
Neutrik
Newtek
NHT
Silvus Technology
Simply Live
SAM Snell Advanced
Media
Spectra Logic
Tannoy
Tecxus
Teradek
TC Electronic
TC Helicon
Media Systems and
Professional
The 2017 financial year was highlighted in the
broadcast sector by a high degree of uncertainty
and instability in the major broadcasters. Revenues
for the major broadcasters was affected by the
significant uptake in online streaming services for
delivery of consumer content (Netflix, Amazon,
Stan, Fetch TV), coupled with the ongoing diversion
of advertising spend to internet-based outlets as
opposed to broadcast television.
The net result for Amber in these markets was that
several million dollars of projected projects were put
on hold, with a direct impact on the performance of
our Media Systems group.
To the best of our knowledge this loss of revenue
appears to be temporary – a postponement
rather than a loss. Moving forward into the 2018
financial year we are optimistic that at least some
of these projects will still come to fruit, enhancing
performance in the coming year, and a number are
already signed.
Despite the above, highlights of the year were
significant for our media systems team:
– Amber undertook a joint development with
Selex ES Australia – a major Australian Defence
Prime – to develop a high powered Silvus data
radio for Naval use. This has now been accepted
as the standard inter-vessel communications
platform by the Royal Australian Navy and will
initially be deployed on the Navy’s fleet of Anzac
Frigates, and on all qualifying Naval Vessels
going forward.
This nominally includes fuel support vessels,
the new fleet of Offshore Patrol Vessels (OPVs)
and the Future Frigates in the SEA5000 program.
We are hopeful that the establishment of the
Silvus radio in the fleet will spin off significant
other deployments in both Marine and
Terrestrial applications.
– In keeping with our program to adopt and
adapt to new technologies and the broadcast
marketplace, we signed a contract with an
important new supplier – Ateme. Based
in France, Ateme deliver Enterprise-grade
compression platforms for the delivery of
video content by internet and terrestrial-based
operations. Fully virtualised for deployment in
data centres, the Ateme product is perfectly
aligned with the developing internet streaming
market. They have rapidly established themselves
as the leader in this territory, with US Giants
such as Comcast and Direct TV amongst others
adopting Ateme for their delivery systems. This
is a major partnership for Amber, with excellent
prognosis for revenue return.
The 2017 financial year was again enhanced
with strong performance in the supply of cable
and connectors to the many large-scale projects
underway in Australia. Our suppliers, Neutrik and
Canare continue to offer innovation to their existing
product lines.
The education sector is again continuing to upgrade
teaching facilities for the media studies and music
technology courses they deliver. The Solid State
Logic model Duality mixing console was added to
JMC Academy Campuses in Melbourne and Brisbane
– this enables JMC to offer world class facilities to all
three of their locations. The Solid State Logic L500
Plus was added to two of Australia’s largest Concert
Touring companies inventory and will gain further
exposure to this market.
New product for the Musical Instrument (MI) and
professional resellers in our network continued a
strong performance in these sectors from last year.
Brands such as TC Electronic, DPA Microphones,
Radial Engineering, Solid State Logic and Dynaudio
Professional all released new models which keep
these brands in demand.
In addition to our current brand portfolio we have
added Danish Guitar effect pedal manufacturer
T-Rex Engineering and German musical instrument
manufacturer, Warwick GmbH & Co. Music
Equipment KG. Warwick, in particular offers Amber
Technology additional access to the MI market.
A significant number of forward orders were placed
for upgrades for Broadcast customers which should
ensure a strong start to the 2018 financial year.
Major professional projects completed during the
year included:
– SSL at JMC Melbourne and Brisbane
– SSL L500 Plus sales to Eight Day Sound and
JPJ Audio
– Supply of CP Cases to the Defence Department
Lifestyle Entertainment
During the 2017 financial year our Major Retail group
focused on three key objectives:
The Integrated Solutions group continued to pursue
a three-fold strategy during the 2017 financial year:
– Consolidating the brands represented into
– Maintain our position as a leading distributor to the
the retail environment;
residential custom installation industry;
– Maintaining a strong position in the supply of
– Continue to build momentum in the commercial
consumer electronics hardware to major retailers
through new projects; and
audio-visual market; and
– Strengthen our position with specialist residential
– Drive awareness of technology and benefits
audio-visual retailers.
through national training programs.
During the year, we implemented changes to the
methodology of representation to our customers.
This restructure altered our staffing requirements
and we brought new personnel into the business.
These new appointments brought in renewed energy
and ideas on how to best service our customers.
The retail environment had seen broad changes
due to challenging economic environment and
retailer consolidation in the categories we serve.
Throughout the financial year, our aim was to provide
continued merchandising support, deliver product at
competitive prices and re-skill field staff to be aware
of new technological changes taking place in the
AV industry.
The Major Retail group continuously reviews
the brand portfolio in order to strengthen the
relationships with our retail partners. Our brands
have benefited from these renewed strategies:
– Continuing development with brand partners
of Onkyo/Dolby Atmos fixtures for live
demonstration and education of consumers in
selected retail outlets, highlighting the benefits
of quality audio in the home environment. These
fixtures will continue rolling out in the new
financial year;
– Adding Chromecast Built-In awareness to all
our retail partners and its benefits to audio
streaming; and
– Enhance and simplify the merchandising of One
For All products on floor through merchandising
agreements with retailers.
During the year, the residential custom installation
market was challenged as high property prices
(and consequently high mortgage payments) in key
markets reduced some end users’ discretionary
spending. In addition, we experienced slow sales
in some categories as we waited for manufacturers
to introduce the 4K display products required in the
market.
Nevertheless, we were gratified to once again be
voted by the residential custom installation industry
(in a poll conducted by Connected home+business
magazine) as ‘Most Popular Residential Distributor’.
Our presence in the commercial AV market gathered
momentum across the financial year. We welcomed
three new brands to the portfolio (Apart: products
for small to medium-sized commercial installation
projects; Contacta: hearing augmentation systems;
JTS: wired and wireless microphones), each one
contributing to our ability to meet all the needs
of a commercial AV project. With utilisation of AV
technologies growing in government, business,
education and house-of-worship applications, we
see this segment as an exciting growth opportunity.
We worked hard to build (and re-build) relationships
with a number of important specialist retailers,
seeking to take advantage of opportunities as this
part of the industry continues to change and evolve.
Our approach in the coming year will see us
continuing to focus on the above mentioned
strategic objectives as we seek to build on long-term
strengths and grow sales into market opportunities
that leverage our existing brands and relationships.
Digitally Fit.
New Zealand
The 2017 financial year saw us introduce a number
of changes to the New Zealand organisation, that are
designed to provide greater consistency of results
in future periods. Results for the year were impacted
by inconsistent performance from some of our
traditional brands. Further, issues with continuity of
staffing have now been addressed and we hope to
recoup lost ground in those areas.
Highlights for the year were as follows:
– The key additions of new brands Apart, Contacta,
Sonance and JTS Professional has allowed us to
broaden our customer base and add a focused
resource to provide a foundation and structure
capable of supporting future growth.
– Growth in the One For All brand, which is now
available in five major retailers (up from just one
a few years ago). Our focus has been to spread
the brand across more stores and focus on three
categories, Antennas, Remotes and Wall Mounts.
The strategy along with investing in store point of
sale support is now paying off; and
– Neutrik and Canare continue to be strong brands
in the Professional group with excellent sales in
some large commercial installs.
We believe there remains further opportunity for
growth of the New Zealand operation. We continue
to streamline our operations:
– We are focusing on synergies with the Australian
operation to allow us to improve working capital
management;
– Our broadcast sales are now being boosted by
regular support from sales staff based out of our
Australian operation to support the local
NZ market; and
– Potential to add additional resource into the
pro/commercial install market as new brands
gain acceptance in the NZ market.
Strategies developed during the year are being
implemented by the NZ operation and we look
forward to these positively impacting results for
the 2018 financial year.
AMBERTECH LIMITED
AND CONTROLLED ENTITIES
ACN 079 080 158
FINANCIAL STATEMENTS FOR THE YEAR ENDED
30 JUNE 2017
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
DIRECTORS' REPORT
The directors present their report together with the financial statements of the consolidated entity consisting of Ambertech
Limited and its controlled entites, ("company" or "economic entity") for the year ended 30 June 2017 and the auditor's report
thereon.
DIRECTORS
The qualifications, experience and special responsibilities of each person who has been a director of the Company at any time
during or since the end of the financial year are listed below, together with the details of the company secretary as at the end
of the financial year. All directors were in office during the whole of the financial year and up to the date of this report unless
otherwise stated.
Information on directors
Peter Francis Wallace
Chairman ‐ Non Executive Director
Member of the Audit and Risk Management Committee and Chairman of the Remuneration and Nomination Committee.
Peter Wallace is the founder and Managing Director of Endeavour Capital Pty Limited, an independent corporate advisory
firm. Prior to establishing Endeavour Capital Pty Limited in 1998, he was an Investment Director with private equity company
Hambro‐Grantham. Mr Wallace has been a non‐executive director of over 20 groups of companies and is currently a non‐
executive director of the listed entity The Hydroponics Company Limited.
Mr Wallace has a Bachelor of Commerce degree from the University of New South Wales and a Master of Business
Administration degree from Macquarie University. He is a member of Chartered Accountants Australia and New Zealand, and
a fellow of the Australian Institute of Company Directors.
Mr Wallace has been a director of Ambertech’s Group companies since February 2000 and Chairman of Ambertech Limited
since October 2002.
Peter Andrew Amos
Managing Director
Peter Amos graduated from Sydney Technical College (now University of Technology, Sydney) with a Radio Trade Certificate
and from North Sydney Technical College with an Electronics Engineering Certificate. He joined Rank Electronics, the Company
from which Ambertech was formed via a management buyout, as a technician in the mid 1970s, rising from Senior Technician
to Service Manager. Upon the formation of Ambertech Limited, Mr Amos became Technical Director of the Ambertech Group.
He also served in a senior role as Marketing Director of Quantum Pacific Pty Ltd, another company owned by Ambertech
Limited, until it was sold in the mid 1990s.
Mr Amos has served as Managing Director of Ambertech Limited since 1995 and presided over the growth of the Company
since that date. Mr Amos has been a director of Ambertech’s Group companies since 1987.
Thomas Robert Amos
Non‐Executive Director
Tom Amos founded telecommunications consultancy Amos Aked Pty Limited in the early 1980s. His career in
telecommunications and media spans over 30 years, during which time he has been involved in all facets of the industry. An
engineer by profession, Mr Amos holds a B.E. (Electrical Engineering) degree from Sydney University.
Mr Amos has also been prominent in the telecommunication deregulation debate over a period of 15 years as a (former)
director and Vice Chairman of Australian Telecommunications Users Group Limited (“ATUG”) and as an industry
commentator. He is a director of Wave Link Systems Pty Limited and a non executive director of listed entity Big Tin Can
Holdings Limited.
Mr Amos has been a director of Ambertech’s Group companies since June 1997.
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
DIRECTORS' REPORT
Edwin Francis Goodwin
Non‐Executive Director
Chairman of the Audit and Risk Management Committee
Ed Goodwin holds a BSc in economics from London University and an MBA from Sydney University. In recent years he has
been working in new venture finance, following 25 years in senior finance and business development roles primarily in the
telecommunications industry.
Mr Goodwin has been a director of Ambertech’s Group companies since June 1997.
David Rostil Swift
Non‐Executive Director
Member of the Remuneration and Nomination Committee.
David Swift, who holds a B.E. (Electrical Engineering) degree from the University of NSW, has extensive experience in both the
telecommunications and professional electronics industries. Mr Swift, a co‐founder of Amos Aked Swift Pty Ltd and the
founder of AAS Consulting Pty Ltd, is currently an independent telecommunications management and technology consultant
operating in the Australasian Pacific region.
Mr Swift was a Director and the Chairman of the Australian Telecommunications Users Group Limited (ATUG) and a Director
of Amos Aked Swift (NZ) Limited. In addition to his consulting experience he has had significant management experience
through senior positions with both Westpac Banking Corporation and Telecom Australia. Mr Swift has been a director of
Ambertech's Group companies since June 1997.
Company Secretary and Chief Operating Officer
The following person held the position of Company Secretary at the end of the financial year: Robert John Glasson
Robert Glasson joined Ambertech Limited on 1 July 2002 and also holds the position of Chief Operating Officer. He previously
held the position of Chief Financial Officer up until 30 June 2015. He has a Bachelor of Business degree from the University of
Technology, Sydney, and is a member of Chartered Accountants Australia and New Zealand. He was appointed to the role of
Company Secretary on 1 November 2004.
CORPORATE INFORMATION
Nature of operations and principal activities
The principal activities of the economic entity during the financial year were the import and distribution of high technology
equipment to the professional broadcast, film, recording and sound reinforcement industries; the import and 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.
There have been no significant changes in the nature of these activities since the end of the financial year.
Employees
The economic entity employed 84 employees as at 30 June 2017 (2016: 94 employees).
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
DIRECTORS' REPORT
REVIEW AND RESULTS OF OPERATIONS
The consolidated loss of the economic entity after providing for income tax for the financial year was $634,000. This was
down from a profit after tax of $237,000 in the previous period. Total revenues for the financial year decreased by 11.9%
to $48,176,000 (2016: $54,681,000). Further information on the operations is included in the Chairman's and Managing
Director's Report section of the Annual Report, and in the ASX Appendix 4E.
FINANCIAL POSITION
The directors believe the economic entity is in a reasonably strong and stable financial position with the potential to
expand and grow its current operations. Whilst borrowings were increased by $859,000 during the financial year, the
economic entity maintained a healthy working capital ratio.
The economic entity's working capital, being current assets less current liabilities, has decreased by $546,000 to
$8,180,000 as at 30 June 2017 (2016: $8,726,000). The net assets of the economic entity have also decreased by
$632,000 to $10,208,000 as at 30 June 2017 (2016: $10,840,000).
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
There were no significant changes in the state of affairs of the economic entity during the financial year.
EVENTS SUBSEQUENT TO REPORTING DATE
There were no matters that have arisen since the end of the financial year that have significantly affected, or may
significantly affect the operations or state of affairs of the economic entity in future financial years.
FUTURE DEVELOPMENTS, PROSPECTS AND BUSINESS STRATEGIES
The 2017‐18 financial year has begun well, and as a result the Board of Ambertech Limited ("the Board") is cautiously
optimistic that it can deliver on business strategies, which continue to focus on returning positive results for investors in
the short term. At this early stage the Board is unable to provide guidance on potential results with any certainty;
however expects to be able to update investors by the time of holding the company's AGM.
The board and management remain focused on utilising 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. We are continuing to progress these initiatives which are the key drivers of future revenue and profit
growth.
ENVIRONMENTAL REGULATION
The company is subject to regulation by the relevant Commonwealth and State legislation. The nature of the company's
business does not give rise to any significant environmental issues.
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
DIRECTORS' REPORT
REMUNERATION REPORT (AUDITED)
The information provided below includes remuneration disclosures that are required under the Corporations Act 2001 and its
regulations. The disclosures contained within the remuneration report have been audited.
In recent years the remuneration policy of the company has had to take into account competing interests. On one hand,
shareholder returns are inadequate, while Directors, faced with their responsibilities to the Company, need to retain an
experienced, expert Board and executive management team. Directors are aware that these staff may have opportunities to
pursue their careers in less challenging environments with prospects of greater remuneration.
Consistent with this view, there have been no significant changes to the remuneration strategy employed by the Board for the
2017 financial year. There has been no change in the remuneration of non‐executive directors since 1 January 2010.
Remuneration Strategy
Non‐Executive Director Remuneration
Remuneration of non‐executive directors is determined by the Remuneration and Nomination Committee. In determining
payments to non‐executive directors, consideration is given to market rates for comparable companies for time, commitment
and responsibilities. The Remuneration and Nomination Committee reviews the remuneration of non‐executive directors
annually, based on market practice, duties and accountability.
Remuneration of non‐executive directors comprises fees determined having regard to industry practice and the need to obtain
appropriately qualified independent persons. Fees do not contain any non‐monetary elements. In response to the financial
performance of the company the remuneration of non‐executive directors has remained unchanged since 1 January 2010.
Executive Remuneration
Managing Director and Chief Operating Officer
Remuneration of the Managing Director and the Chief Operating Officer (COO) is determined by the Remuneration and
Nomination Committee. In this respect, consideration is given to normal commercial rates of remuneration for similar levels of
responsibility. Remuneration comprises salaries, bonuses, contributions to superannuation funds and options.
The Managing Director and COO receive an incentive element of their salary which is based on achievement of Key Performance
Indicators (KPIs) relevant to their responsibilities. This includes a component that is based on the company's profit targets. The
total incentive amounts payable are capped at a fixed rate rather than as a percentage of total remuneration, however if paid on
target these incentives would have represented approximately 20% of total salary for the Managing Director and 15% of total
salary for the COO.
KPIs are set annually by the Remuneration and Nomination Committee and based on company performance targets, and vary
according to the roles and responsibilities of the executive. At the same time, these KPIs are aligned to reflect the common
corporate goals such as growth in earnings and shareholders' wealth, and achievement of working capital targets. Performance
against the KPIs is assessed annually by the Remuneration and Nomination Committee and recommendations for payments
determined following the end of the financial year.
As a result of the financial performance of the company, the Managing Director and COO have foregone the entirety of their
short term incentive and KPI salary components for the past seven financial years.
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
DIRECTORS' REPORT
REMUNERATION REPORT (continued)
Other Executives
Remuneration of other key executives is set by the Managing Director and Chief Operating Officer, with reference to
guidelines set by the Remuneration and Nomination Committee. In this respect, consideration is given to normal
commercial rates of remuneration for similar levels of responsibility. Remuneration comprises salaries, bonuses,
contributions to superannuation funds and options.
Approximately 5% of the aggregate remuneration of the senior sales executives comprises an incentive element which
is related to the KPIs of those parts of the company's operations which are relevant to the executive's responsibilities.
The senior sales executives may also receive a sales commission component, which will vary with the sales
performance of those parts of the sales business for which they are responsible.
KPIs are set annually by the Remuneration and Nomination Committee, with a degree of consultation with executives
to ensure their commitment. The measures are tailored to the areas of each executive's involvement and over which
they have control. They are based on company performance targets, and at the same time, these KPIs are aligned to
reflect the common corporate goals such as growth in earnings and shareholders' wealth, and achievement of working
capital targets. Performance against the KPIs is assessed annually by the Remuneration and Nomination Committee
and recommendations for payments determined following the end of the financial year.
The table below sets out the economic entity's key shareholder indicators for the past 5 financial
years:
Dividends paid (cents per share)
Closing share price at 30 June ($)
Net profit/(loss) after tax ($'000)
Details of Remuneration
2017
‐
$0.15
(633)
2016
‐
2015
‐
$0.125
$0.135
2014
‐
$0.20
2013
‐
$0.23
237
(1,654)
(1,000)
(2,212)
Details of the remuneration of the directors and the key management personnel (as defined in AASB 124 Related Party
Disclosures) of the economic entity are set out in the following tables.
The key management personnel of the economic entity includes the following:
Name
Position
Name
Position
P Wallace
Non‐Executive Chairman
R Glasson
Group COO, Company Secretary
P Amos
T Amos
Group Managing Director
R Neale
General Manager, Lifestyle Entertainment
Non‐Executive Director
R Caston
General Manager, Broadcast & Professional
E Goodwin
Non‐Executive Director
N Lee
General Manager, Amber New Zealand
D Swift
Non‐Executive Director
Key management personnel are those directly accountable to the Managing Director and the Board and responsible for
the operational management and strategic direction of the Company.
The nature and amount of each major element of the remuneration of each director of the economic entity and each
of the key management personnel of the parent and the economic entity for the financial year are set out in the
following tables.
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
DIRECTORS' REPORT
REMUNERATION REPORT (continued)
Elements of Remuneration
2017
Directors
P Amos
P Wallace
T Amos
E Goodwin
D Swift
Executives
R Glasson
R Caston
R Neale
N Lee
Short‐term employment
benefits
Post employment
benefits
Salary fees
and leave
Cash Bonus
Superannuation
Long‐term
employment
benefits
LSL accrued/
(taken)
$
$
$
$
Share based
payments
Options
$
Total
$
%
Performance
Related
% Relating
to Options
340,316
55,046
32,111
32,111
90
459,674
189,238
172,340
245,027
99,061
705,666
‐
‐
‐
‐
‐
‐
‐
4,600
19,500
‐
24,100
33,991
5,229
3,051
3,051
34,990
80,312
18,303
34,992
34,992
6,051
94,338
6,902
1,434
382,643
‐
‐
‐
‐
‐
‐
‐
‐
60,275
35,162
35,162
35,080
6,902
1,434
548,322
3,723
2,147
590
‐
6,460
‐
‐
‐
‐
‐
211,264
214,079
300,109
105,112
830,564
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
2.1%
6.5%
0.0%
2.9%
0.4%
0.0%
0.0%
0.0%
0.0%
0.3%
0.0%
0.0%
0.0%
0.0%
0.0%
(1) On 15 February 2017, a cash bonus of $4,600 was paid to Mr Caston relating to performance against KPI's. The bonus is 100% of the total available to Mr Caston under his KPI scheme.
(2) Quarterly cash bonuses totalling $19,500 were paid to Mr Neale relating to performance against KPI's. The bonuses are 100% of the total available to Mr Neale under his KPI scheme.
2016
Directors
P Amos
P Wallace
T Amos
E Goodwin
D Swift
Executives
R Glasson
R Caston
P Simmons ‐ Resigned 13/11/15
R Neale ‐ Commenced 23/11/15
R McCleery ‐ Resigned 31/3/16
N Lee ‐ Commenced 1/4/16
Short‐term employment
benefits
Post employment
benefits
Salary fees
and leave
Cash Bonus
Superannuation
$
$
$
345,155
55,046
32,111
32,111
105
464,528
191,833
152,653
108,857
126,704
107,869
25,789
713,705
‐
‐
‐
‐
‐
‐
‐
‐
1,250
4,566
‐
‐
5,816
34,015
5,233
3,053
3,053
35,000
80,354
18,315
31,923
10,393
21,509
‐
1,467
83,607
Long‐term
employment
benefits
LSL accrued/
(taken)
$
6,925
‐
‐
‐
‐
6,925
3,729
(13,247)
‐
149
‐
‐
(9,369)
Share based
payments
Options
$
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
Total
$
386,095
60,279
35,164
35,164
35,105
551,807
213,877
171,329
120,500
152,928
107,869
27,256
793,759
%
Performance
Related
% Relating
to Options
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
1.0%
3.0%
0.0%
0.0%
0.7%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
(1) On 13 November 2015, a cash bonus of $1,250 was paid to Mr Simmons relating to performance against KPI's. The bonus is 100% of the total available to Mr Simmons under his KPI scheme.
(2) On 14 April 2016, a cash bonus of $4,566 was paid to Mr Neale relating to performance against KPI's. The bonus is 100% of the total available to Mr Neale under his KPI scheme.
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
DIRECTORS' REPORT
REMUNERATION REPORT (continued)
Service agreements
An executive agreement exists between Peter Amos, the Managing Director, and Amber Technology Limited. This agreement provides that
Mr Amos, for a period of 12 months from the date of termination, will not engage in activities in competition with the Amber Group. There is
a notice period by either party of 12 months.
The agreement commenced on 31 May 1999 and continues indefinitely. In the event that the company was to exercise its right to terminate
the contract, the current payout value would be $380,000 (2016: $380,000).
Share based compensation
The company has adopted an Employee Share Option Plan (ESOP). The Board of Directors may determine the executives and eligible
employees who are entitled to participate in the ESOP.
The options issued under the ESOP will expire 5 years after the issue date, or earlier on any of the following events:
a
b
c
d
e
the eligible employee is dismissed with cause or has breached a restriction contained in his/her employment contract;
the eligible employee dies while in the employ of the Company;
the eligible employee is made redundant by the Company;
the eligible employee’s employment with the Company is voluntarily terminated by the eligible employee; or
the eligible employee’s employment terminates by reason of normal retirement.
The total number of shares reserved for issuance under the ESOP, together with shares reserved for issuance under any other Option Plan,
shall not exceed 5% of the diluted ordinary share capital in the Company (comprising all Shares, all Options issued under the ESOP and under
any other Option Plan, and all other convertible issued securities).
The ESOP provides the Board with the ability to determine the exercise price of the options, the periods within which the options may be
exercised, and the conditions to be satisfied before the option can be exercised.
The ESOP provides for adjustments in accordance with ASX Listing Rules if there is a capital reconstruction, a rights issue or a bonus issue.
Options granted as remuneration during the year are set out below.
Balance at beginning
of year
Grant Date
No.
Value $
No.
Value $
No.
Balance at
end of year
Grant Details
Exercised
Lapsed
P Amos
‐
24/11/16
500,000
22,980
‐
‐
‐ 500,000
During the financial year, 166,666 options vested with key management personnel (2016: Nil). None of these options were exercisable (2016:
Nil).
The fair value of options granted as remuneration as shown in the above table has been determined in accordance with Australian
Accounting Standards and will be recognised as an expense over the relevant vesting period to the extent that conditions necessary for
vesting are satisfied.
The options have been granted subject to the individual meeting predetermined performance criteria as determined by the Board. The
options vest as follows:
(i) One third of the options have vested
(ii) One third vest on the first anniversary of the date of issue; and
(iii) The remaining one third will vest on the second anniversary of the date of issue.
Should the performance criteria not be met for a particular year then any unvested options may be carried forward for one more year. In the
event that performance criteria for the following year us not met, then the portion of the options which were available for vesting for that
year shall be considered forfeited.
Details of the options granted as remuneration to those KMP listed in the previous table are as follows:
Grant Date
Issuer
Entitlement on
Exercise
Dates
Exercisable
Exercise
Price
Value per
Option at
Grant Date
Amount
Paid/Payable by
Recipient
24/11/16
Amertech
Limited
1:1 Ordinary Shares in
Ambertech Limited
From vesting
date to
30/11/2021
$0.15
$0.05
Nil
Option values at grant date were determined using the Black‐Scholes method.
There have been no shares issued during or since the end of the financial year as a result of exercise of options.
In relation to bonus issues, each outstanding option confers on the option holder the right to receive, on exercise of those outstanding
options, not only one share for each of the outstanding options exercised but also the additional shares the option holder would have
received had the option holder participated in that bonus issue as a holder of ordinary shares.
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
DIRECTORS' REPORT
Interests of Directors
At the date of this report the following interests were held by directors:
Director
Ordinary Shares
P Wallace
P Amos
T Amos
E Goodwin
D Swift
DIVIDENDS
2017
2016
486,528
4,313,843
5,484,625
2,883,556
2,995,826
236,528
4,313,843
5,484,625
2,883,556
2,995,826
There were no dividends paid or declared by the Company to members since the end of the previous financial year.
DIRECTORS' MEETINGS
The number of directors' meetings (including meetings of committees of directors) and the number of meetings attended by
each of the directors of the Company during the financial year are:
Director
P Wallace
P Amos
T Amos
E Goodwin
D Swift
Board Meetings
Audit and Risk Management
Committee Meetings
Nomination and Remuneration
Committee
Attended
Held
Attended
Held
Attended
Held
9
9
9
8
8
9
9
9
9
9
2
2
‐
‐
‐
2
2
‐
‐
‐
‐
‐
‐
2
2
‐
‐
‐
2
2
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
DIRECTORS' REPORT
NON‐AUDIT SERVICES
It is the economic entity's policy to employ BDO East Coast Partnership (BDO) for assignments additional to their annual
audit duties, when BDO's expertise and experience with the economic entity are important. During the year these
assignments comprised primarily tax compliance assignments. The Board of Directors is satisfied that the auditors'
independence is not compromised as a result of providing these services because:
‐
‐
All non‐audit services have been reviewed by the Audit and Risk Management Committee to ensure they do not
impact the impartiality and objectivity of the auditor, and
None of the services undermines the general principles relating to the auditor independence as set out in APES 110
Code of Ethics for Professional Accountants, including reviewing or auditing the auditors' own work, acting in a
management or decision making capacity for the company, acting as an advocate for the company or jointly sharing
economic risks and rewards.
During the year fees that were paid or payable for services provided by the auditor of the parent entity and
its related practices are disclosed at note 26.
The directors are satisfied that the provision of non‐audit services during the year by the auditor is compatible with the
general standard of independence for auditors imposed by the Corporations Act 2001.
PROCEEDINGS ON BEHALF OF THE COMPANY
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on
behalf of the company, or to intervene in any proceedings to which the company is a party, for the purpose of taking
responsibility on behalf of the company for all or part of those proceedings.
No proceedings have been brought or intervened in on behalf of the company with leave of the Court under section 237
of the Corporations Act 2001.
AUDITORS' INDEPENDENCE DECLARATION
A copy of the auditors' independence declaration as required under section 307C of the Corporations Act 2001 is set out
on page 11.
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
DIRECTORS' REPORT
INDEMNIFICATION OF OFFICERS
The company has indemnified the directors and executives of the company for costs incurred, in their capacity as a
director or executive, for which they may be held personally liable, except where there is a lack of good faith.
During the financial year, the company paid a premium in respect of a contract to insure the directors and executives of
the company against a liability to the extent permitted by the Corporations Act 2001. The contract of insurance prohibits
disclosure of the nature of liability and the amount of the premium.
ROUNDING
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 statements have been rounded off to the nearest thousand dollars unless otherwise indicated.
Signed in accordance with a resolution of directors.
Director:
P F Wallace
P A Amos
Dated this 29th day of September 2017.
Sydney
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2017
Revenue
Cost of sales
Gross profit
Other income
Employee benefits expense
Distribution costs
Marketing costs
Premises costs
Depreciation and amortisation expenses
Finance costs
Travel costs
Other expenses
(Loss)/profit before income tax
Income tax benefit
(Loss)/profit for the year
Other comprehensive income
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations
Other comprehensive income for the year, net of tax
Total comprehensive income for the year
Earnings per share
Basic earnings per share (cents)
Diluted earnings per share (cents)
Economic Entity
Note
2017
$'000
2016
$'000
3
4
3
4
4
4
5
24
24
48,176
(32,721)
15,455
94
(9,111)
(1,558)
(1,306)
(1,984)
(259)
(686)
(465)
(844)
(664)
30
(634)
1
1
(633)
(2.1)
(2.1)
54,681
(38,337)
16,344
87
(8,910)
(1,298)
(1,481)
(1,992)
(266)
(865)
(486)
(897)
236
1
237
64
64
301
0.8
0.8
The consolidated statement of profit or loss and other comprehensive income is to be read in conjunction with the attached notes.
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2017
ASSETS
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
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
Provisions
TOTAL CURRENT LIABILITIES
NON‐CURRENT LIABILITIES
Provisions
Deferred tax liabilities
TOTAL NON‐CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Share capital
Reserves
Accumulated losses
TOTAL EQUITY
Economic Entity
Note
2017
$'000
2016
$'000
22
6
7
9
10
5
11
12
13
13
5
14
15
1,014
7,728
12,045
20,787
987
‐
1,202
2,189
948
8,084
12,942
21,974
1,153
7
1,174
2,334
22,976
24,308
6,600
4,393
1,614
8,134
3,534
1,580
12,607
13,248
143
18
161
12,768
10,208
200
20
220
13,468
10,840
11,138
11,138
33
(963)
31
(329)
10,208
10,840
The consolidated statement of financial position is to be read in conjuntion with the attached notes.
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2017
Foreign
Currency
Translation
Reserve
$'000
Share Based
Payments
Reserve
$'000
Share Capital
$'000
Retained
Earnings
$'000
Total Equity
$'000
Economic Entity
Balance as at 30 June 2015
Profit for the year
Other comprehensive income for the year
Total comprehensive income for the year
Balance as at 30 June 2016
Profit for the year
Costs of share based payments
Other comprehensive income for the year
Total comprehensive income for the year
11,138
‐
‐
‐
11,138
‐
‐
‐
‐
Balance as at 30 June 2017
11,138
(33)
‐
64
64
31
‐
‐
1
1
32
‐
‐
‐
‐
‐
‐
‐
1
1
1
(566)
237
‐
237
(329)
(634)
‐
‐
(634)
(963)
10,539
237
64
301
10,840
(634)
1
1
(632)
10,208
The consolidated statement of changes in equity is to be read in conjunction with the attached notes.
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2017
Economic Entity
Note
2017
$'000
2016
$'000
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers
Payments to suppliers and employees
Interest received
Interest and other costs of finance paid
Income taxes refunded
Goods and services tax remitted
Net cash (used in)/provided by operating activities
22
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for plant and equipment
Net cash (used in) investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings
Repayment of borrowings
Net cash provided by/(used in) financing activities
Net increase/(decrease) 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
52,979
(49,350)
18
(686)
‐
(3,669)
(708)
(85)
(85)
893
(34)
859
66
948
‐
Cash and cash equivalents at end of year
22
1,014
The consolidated statement of cash flows is to be read in conjunction with the attached notes.
58,891
(53,177)
17
(865)
1
(4,148)
719
(45)
(45)
368
(1,600)
(1,232)
(558)
1,521
(15)
948
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1: INTRODUCTION
The financial statements cover the economic entity consisting of Ambertech Limited and its controlled entities.
Ambertech Limited is a company limited by shares, incorporated and domiciled in Australia.
Operations and principal activities
Ambertech Limited is a distributor of high technology equipment to the professional broadcast, film, recording and sound
reinforcement industries and of consumer audio and video products in Australia and New Zealand.
Currency
The financial statements are presented in Australian dollars and rounded to the nearest one thousand dollars.
Registered office
Unit 1, 2 Daydream Street, Warriewood NSW 2102.
Authorisation of financial statements
The financial statements were authorised for issue on 29 September 2017 by the Directors. The company has the power
to amend the financial statements.
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Overall Policy
The principal accounting policies adopted in the preparation of these consolidated financial statements are stated in
order to assist in a general understanding of the financial statements. These general purpose financial statements
have been prepared in accordance with Australian Accounting Standards and Interpretations issued by the Australian
Accounting Standards Board (AASB) and the Corporations Act 2001, as appropriate for profit oriented entities. The
financial statements have been prepared under the historic cost convention.
Statement of Compliance
The financial statements comply with Australian Accounting Standards which include Australian equivalents to
International Financial Reporting Standards (AIFRS). Compliance with AIFRS ensures that the financial statements
and notes of the economic entity comply with International Financial Reporting Standards (IFRS).
Going Concern
The consolidated financial statements have been prepared on a going concern basis.
For the year ended 30 June 2017, the consolidated entity incurred a loss after income tax of $633,000
(2016: profit of $237,000). In the same period the consolidated entity had operating cash outflows of $708,000
(2016: cash inflow of $719,000)
A cash flow forecast for the next 12 months prepared by management has indicated that the consolidated entity will
have sufficient cash assets to be able to meet its debts as and when they are due. The directors have therefore
concluded that there are reasonable grounds to believe that the basis for the preparation of the financial statements
on a going concern basis is appropriate.
New, revised or amending Accounting Standards and Interpretations adopted
The economic 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.
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(a) Overall Policy (continued)
New Accounting Standards issued but not yet effective
The following standards, amendments to standards and interpretations have been identified as those which may impact the economic entity in
the period of initial application. They are available for early adoption at 30 June 2016, but have not been applied in preparing these financial
statements.
(i)
AASB 9: Financial Instruments and associated Amending Standards (applicable to annual reporting periods beginning on or after 1 July
2018).
The Standard will be applicable retrospectively (subject to the provisions on hedge accounting outlined below) and includes revised
requirements for the classification and measurement of financial instruments, revised recognition and derecognition requirements for
financial instruments and simplified requirements for hedge accounting.
The key changes that may affect the Group on initial application include certain simplifications to the classification of financial assets,
simplifications to the accounting of embedded derivatives, upfront accounting for expected credit loss, and the irrevocable election to
recognise gains and losses on investments in equity instruments that are not held for trading in other comprehensive income. AASB 9 also
introduces a new model for hedge accounting that will allow greater flexibility in the ability to hedge risk, particularly with respect to hedges
of non‐financial items. Should the entity elect to change its hedge policies in line with the new hedge accounting requirements of the
Standard, the application of such accounting would be largely prospective.
Management has commenced assessing the impact to the financial statements of adopting AASB 9. Whilst it is impractical to provide a
reasonable estimate of such impact at this stage, it is not expected to be significant.
(ii)
AASB 15: Revenue from Contracts with Customers (applicable to annual reporting periods beginning on or after 1 July 2018, as deferred by
AASB 2015‐8: Amendments to Australian Accounting Standards – Effective Date of AASB 15).
When effective, this Standard will replace the current accounting requirements applicable to revenue with a single, principles‐based model.
Apart from a limited number of exceptions, including leases, the new revenue model in AASB 15 will apply to all contracts with customers as
well as non‐monetary exchanges between entities in the same line of business to facilitate sales to customers and potential customers.
The core principle of the Standard is that an entity will recognise revenue to depict the transfer of promised goods or services to customers
in an amount that reflects the consideration to which the entity expects to be entitled in exchange for the goods or services. To achieve this
objective, AASB 15 provides the following five‐step process:
‐
‐
identify the contract(s) with a customer;
identify the performance obligations in the contract(s);
‐
‐
determine the transaction price;
allocate the transaction price to the performance obligations in the contract(s); and
recognise revenue when (or as) the performance obligations are satisfied.
‐
The transitional provisions of this Standard permit an entity to either: restate the contracts that existed in each prior period presented per
AASB 108: Accounting Policies, Changes in Accounting Estimates and Errors (subject to certain practical expedients in AASB 15); or
recognise the cumulative effect of retrospective application to incomplete contracts on the date of initial application. There are also
enhanced disclosure requirements regarding revenue.
Management has commenced assessing the implications of adopting AASB 15 and have identified some areas for which further analysis will
be required to determine the impact on the financial statements. However, at this stage, it is impractical to provide a reasonable estimate
of such impact.
(iii)
AASB 16: Leases (applicable to annual reporting periods beginning on or after 1 July 2019).
When effective, this Standard will replace the current accounting requirements applicable to leases in AASB 117: Leases and related
Interpretations. AASB 16 introduces a single lessee accounting model that eliminates the requirement for leases to be classified as
operating or finance leases.
The main changes introduced by the new Standard are as follows:
‐
‐
‐
‐
recognition of a right‐of‐use asset and liability for all leases (excluding short‐term leases with less than 12 months of tenure and leases
relating to low‐value assets);
depreciation of right‐of‐use assets in line with AASB 116: Property, Plant and Equipment in profit or loss and unwinding of the liability
in principal and interest components;
inclusion of variable lease payments that depend on an index or a rate in the initial measurement of the lease liability using the index
or rate at the commencement date;
application of a practical expedient to permit a leasee to elect not to separate non‐lease components and instead account for all
components as a lease; and
inclusion of additional disclosure requirements.
‐
The transitional provisions of AASB 16 allow a lessee to either retrospectively apply the Standard to comparatives in line with AASB 108 or
recognise the cumulative effect of retrospective application as an adjustment to opening equity on the date of initial application.
Management has commenced assessing the implications of adopting AASB 16 and have identified some areas for which further analysis will
be required to determine the impact on the financial statements. However, at this stage, it is impractical to provide a reasonable estimate
of such impact.
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(b) Significant Judgements and Key Assumptions
Judgements made in applying accounting policies that have the most significant effect on the amounts recognised in the financial
statements are discussed below.
Provision for impairment of receivables
The provision for impairment of receivables assessment requires a degree of estimation and judgement. The level of provision is
assessed by taking into account the ageing of receivables, historical collection rates, and specific knowledge of the individual
debtor's financial position.
Recovery of deferred tax assets
Deferred tax assets are recognised for deductible temporary differences and tax losses only if the economic entity considers it is
probable that future taxable amounts will be available to utilise those temporary differences and losses.
Estimated useful life of assets
The economic entity determines the estimated useful life and related depreciation and amortisation charges for plant and
equipment and definite life of intangible assets. This is in accordance with the accounting policy stated in note 2(h).
Provision for impairment of inventories
The provision for impairment of inventories assessment requires a degree of estimation and judgement. The level of the provision
is assessed by taking into account the recent sales experience, the ageing of inventories and other factors that affect inventory
obsolescence.
Long service leave provision
The liability for long service leave is recognised and measured at the present value of the estimated future cash flows to be made in
respect of all employees at the reporting date. In determining the present value of the liability, estimates of attrition rates and pay
increases through promotion and inflation have been taken into account.
Warranty provision
In determining the level of provision required for warranties, the economic entity has made judgements in respect of the expected
performance of the product, expected customer claims and costs of fulfilling the conditions of warranty. The provision is based on
estimates made from historical warranty costs associated with similar products.
(c) Consolidation Policy
A controlled entity is any entity controlled by Ambertech Limited. Control exists where Ambertech Limited has the capacity to
dominate the decision‐making in relation to the financial and operating policies of another entity so that the other entity operates
with Ambertech Limited to achieve the objectives of Ambertech Limited. Details of the controlled entities are contained at note 8.
All inter‐company balances and transactions between entities in the economic entity, including any unrealised profits or losses, have
been eliminated on consolidation.
(d) Revenue Recognition
Sales revenue comprises revenue earned (net of returns, discounts and allowances) from the provision of goods and services to
entities outside the economic entity.
Sale of goods
Revenue from the sale of goods is recognised when all significant risks and rewards of ownership have been transferred to the
buyer. In most cases this coincides with the transfer of legal title, or the passing of possession to the buyer.
Rendering of services
Revenue from the rendering of a service is recognised upon the delivery of the service to the customers.
Interest revenue
Interest revenue is recognised as it accrues using the effective interest method.
Dividend revenue
Dividends are recognised as income as they are received, net of any franking credits.
(e) Cash and Cash Equivalents
For the purposes of the statement of cash flows, cash and cash equivalents includes cash on hand, deposits at call with banks or
financial institutions, investments in money market instruments maturing within three months, and bank overdrafts.
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(f)
Trade and other receivables
Trade and other receivables are recognised initially at fair value and subsequently measured at amortised cost using the
effective interest method, less provision for impairment. Trade receivables are generally due for settlement between 30
and 60 days.
Collectability of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectible are
written off by reducing the carrying amount directly. A provision for impairment of trade receivables is raised when
there is objective evidence that the economic entity will not be able to collect all amounts due according to the original
terms of the receivables.
(g)
Inventories
Inventories include finished goods and stock in transit and are measured at the lower of weighted average cost and net
realisable value. Costs are assigned on a first‐in first‐out basis and include direct materials, direct labour and an
appropriate proportion of variable and fixed overhead expenses.
(h) Plant and Equipment
Plant and equipment is stated at historical cost less depreciation and impairment. Historical cost includes expenditure
that is directly attributable to the acquisition of the items.
Plant and equipment is depreciated over its estimated useful life taking into account estimated residual values. The
straight line method is used.
Plant and equipment is depreciated from the date of acquisition or, in respect of leasehold improvements, from the
time the asset is completed and ready for use. The depreciation rates used for each class of plant and equipment
remain unchanged from the previous year and are as follows:
Class of Asset
Plant and equipment
Furniture and fittings
Leasehold improvements
Leased plant and equipment
Useful life
3‐8 years
3‐8 years
Term of the lease
Term of the lease
The carrying values of plant and equipment are reviewed for impairment when events or changes in circumstances
indicate the carrying value may not be recoverable. If any such indication exists and where the carrying values exceed
the estimated recoverable amount, the plant and equipment or cash generating units to which the plant and equipment
belong are written down to their recoverable amount.
(i)
Intangible Assets
Goodwill
All business combinations are accounted for by applying the acquisition method. Goodwill represents the difference
between the cost of the acquisition and the fair value of the net identifiable assets acquired.
Goodwill is stated at cost less any accumulated impairment. Goodwill is allocated to cash generating units and is not
subject to amortisation, but tested annually for impairment (refer to note 2(j)). Goodwill has been fully impaired (refer
to note 10).
Where the recoverable amount of the cash generating unit is less than the carrying amount, an impairment loss is
recognised.
Website Costs
Significant costs associated with website costs are deferred and amortised on a straight‐line basis over the period of
their expected benefit, being a finite life of 3 years. Website costs have been fully amortised (refer to note 10).
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(j)
Impairment of Assets
Goodwill and intangible assets that have an indefinite useful life are not subject to amortisation and are tested annually
for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. Other
assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may
not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its
recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For
the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable
cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash‐generating
units).
If there is evidence of impairment for any of the company’s financial assets carried at amortised cost, the loss is
measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows,
excluding future credit losses that have not been incurred. The cash flows are discounted at the economic entity's
weighted average cost of capital. The loss is recognised in the statement of profit or loss and other comprehensive
income.
(k) Trade and Other Payables
These amounts represent liabilities for goods and services provided to the economic entity prior to the end of financial
year which are unpaid. Due to their short term nature, they are measured at amortised cost and are not discounted.
The amounts are unsecured and are usually paid within 30 days of recognition.
(l) Borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured
at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is
recognised in the statement of profit or loss and other comprehensive income over the period of the borrowings using
the effective interest method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the
loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred
until the draw down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be
drawn down, the fee is capitalised as a prepayment for liquidity services and amortised over the period of the facility to
which it relates.
(m) Service Warranties
Provision is made for the estimated liability on all products still under warranty at balance date. The provision is based on
estimates made from historical warranty costs associated with similar products.
(n) Leases
(i) Operating leases
Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are
charged as expenses in the periods in which they are incurred. Lease incentives under operating leases are
recognised as a liability and amortised on a straight–line basis over the life of the lease term.
(ii) Finance leases
Lease payments, where substantially all the risks and benefits incidental to the ownership of the leased asset
transfer from the lessor to the lessee, are allocated between the principal component of the lease liability and the
finance costs. Leased assets acquired under a finance lease are depreciated over the term of the lease.
(o) Share Based Payments
Options issued over ordinary shares are valued using the Black‐Scholes pricing model which takes into account the option
exercise price, the current level and volatility of the underlying share price, the risk free interest rate, the expected
dividends on the underlying share, the current market price of the underlying share and the expected life of the option.
Information relating to these schemes is set out in note 20.
The value of the options is recognised in an option reserve until the options are exercised, forfeited or expire.
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(p) Employee Benefits
Short term employee benefits are employee benefits (other than termination benefits and equity compensation
benefits) which fall due wholly within 12 months after the end of the period in which employee services are rendered.
They comprise wages, salaries, commissions, social security obligations, short‐term compensation absences and
bonuses payable within 12 months and non‐mandatory benefits such as car allowances.
The undiscounted amount of short‐term employee benefits expected to be paid is recognised as an expense.
Other long‐term employee benefits include long‐service leave payable 12 months or more after the end of the financial
year.
(q)
Income Tax
The income tax expense or benefit for the period is the tax payable on the current period’s taxable income based on
the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities
attributable to temporary differences and to unused tax losses.
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax
bases of assets and liabilities and their carrying amounts. However, the deferred income tax is not accounted for if it
arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time
of the transaction affects neither accounting nor taxable profit or loss. Deferred income tax is determined using tax
rates (and laws) that have been enacted or substantially enacted by the reporting date and are expected to apply when
the related deferred income tax asset is realised or the deferred income tax liability is settled.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that
future taxable amounts will be available to utilise those temporary differences and losses.
Deferred tax liabilities and assets are not recognised for temporary differences between the carrying amount and tax
bases of investments in controlled entities where the parent entity is able to control the timing of the reversal of the
temporary differences and it is probable that the differences will not reverse in the foreseeable future.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and
liabilities and when the deferred tax balances relate to the same taxation authority.
Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends
either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Current and deferred tax balances attributable to amounts recognised directly in equity are also recognised directly in
equity.
Tax consolidation legislation
Ambertech Limited and its Australian wholly owned controlled entities have implemented the tax consolidation
legislation.
The head entity, Ambertech Limited, and the controlled entities in the tax consolidated group continue to account for
their own current and deferred tax amounts. These tax amounts are measured as if each entity in the tax consolidated
group continues to be a ‘stand‐alone taxpayer’ in its own right.
Current tax liabilities/assets and deferred tax assets arising from unused tax losses and tax credits are immediately
transferred to the head entity. The tax consolidated group has entered a tax sharing agreement whereby each
company in the group contributes to the income tax payable by the group in proportion to their contribution to the
group’s taxable income. Differences between the amounts of net tax assets and liabilities derecognised and the net
amounts recognised pursuant to the funding arrangement will be recognised as either a contribution by, or distribution
to the head entity.
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(r)
Foreign Currency Translation
The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on consolidation,
are translated to Australian dollars at exchange rates prevailing at the balance sheet date. The revenues and expenses
of foreign operations are translated to Australian dollars at rates approximating to the exchange rates prevailing at the
dates of the transactions.
Foreign exchange differences arising on retranslation are recognised directly in a separate component of equity.
(s)
Earnings Per Share
(i) Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to equity holders of the company,
excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary
shares outstanding during the year, adjusted for bonus elements in ordinary shares issued during the year.
(ii) Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into
account the after income tax effect of interest and other financing costs associated with dilutive potential ordinary
shares and the weighted average number of shares assumed to have been issued for no consideration in relation
to dilutive potential ordinary shares.
(t)
Share Capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are
shown in equity as a deduction, net of tax, from the proceeds.
(u) Dividends
Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the
discretion of the entity, on or before the end of the year but not distributed at balance date.
(v)
Borrowing Costs
Borrowing costs directly attributable to the acquisition, construction or production of assets that necessarily take a
substantial period of time to prepare for their intended use or sale, are added to the cost of those assets, until such
time as the assets are substantially ready for their intended use or sale. Other borrowing costs are expensed.
(w) Goods and Services Tax
Revenues, expenses and assets are recognised net of the amount of GST, unless the GST incurred is not recoverable
from the taxation authority. In this case it is recognised as part of the cost of acquisition of the asset or as part of the
expense. Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of
GST recoverable from, or payable to, the taxation authority is included with other receivables or payables in the
statement of financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing
activities which are recoverable from, or payable to the taxation authority, are presented as operating cash flows.
(x) Derivative financial instruments
Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re‐
measured to their fair value at each reporting date. The accounting for subsequent changes in fair value depends on
whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged.
Derivatives are classified as current according to expected period of realisation.
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 3: REVENUE
Revenue
‐ Sale of goods and services
‐ Interest received
Other income
‐ Net foreign exchange gains
‐ Net profit on disposal of plant and equipment
NOTE 4: EXPENSES
Additional information on the nature of expenses
Inventories
Cost of sales
Movement in provision for inventory obsolescence
Employee benefits expense
Salaries and wages
Defined contribution superannuation expense
Employee termination expense
Share‐based payments expense
Depreciation
Plant and equipment
Furniture and fittings
Leasehold improvements
Leased plant and equipment
Amortisation
Website costs
Bad and doubtful debts
Rental expense on operating leases:
Minimum lease payments
Economic Entity
2017
$'000
2016
$'000
48,158
54,664
18
17
48,176
54,681
93
1
94
87
‐
87
32,721
38,337
131
(35)
7,888
7,902
891
331
1
851
157
‐
9,111
8,910
61
31
144
16
252
7
32
62
33
146
16
257
9
128
1,463
1,431
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 5: INCOME TAX
Major components of income tax
Deferred tax
Deferred tax asset written off
Income tax (benefit)
Reconciliation between income tax and prima facie tax on accounting profit/(loss)
(Loss)/profit before income tax
Tax at 30% (2016:30%)
Tax effect of non deductible expenses/non assessable income
‐ Entertainment
‐ Other items
Unused tax losses not recognised as deferred tax assets
Recoupment of prior year tax losses not previously brought to account
Deferred tax asset written off
Income tax (benefit)
Applicable tax rate
The applicable tax rate is the national tax rate in Australia of 30%.
Analysis of deferred tax assets
Employee benefits
Plant and equipment
Accrued expenses
Provision for impairment of receivables
Provision for obsolesence
Inventory
Other
Analysis of deferred tax liabilities
Unrealised foreign currency gain
Other
Economic Entity
2017
$'000
2016
$'000
(30)
‐
(30)
(664)
(199)
12
4
153
‐
‐
(30)
450
205
149
18
266
62
52
(10)
9
(1)
236
71
15
5
72
(173)
9
(1)
485
168
164
48
226
33
50
1,202
1,174
10
8
18
14
6
20
Tax consolidated group
Ambertech Limited is the head entity in a tax consolidated group. The tax consolidated legislation has been applied in
respect of the year ended 30 June 2017.
Ambertech Limited has entered into a tax sharing agreement with Amber Technology Limited and Alphan Pty Limited. The
tax sharing agreement allows for an allocation of income tax expense to members of the group on the basis of taxable
income.
Tax Losses
In order to recognise a deferred tax asset relating to tax losses, the Directors must be satisfied that forecast results provide
sufficient evidence that the economic entity will be able to utilise tax losses against future taxable profits of the economic
entity. As a general rule, Directors will consider forecast reults over a three year period as a guide to determining the
recoverability of the asset.
In 2015 the board determined that it could no longer justify the recognition of a deferred tax asset resulting from
accumulated tax losses. At balance date, total unused tax losses available amounted to $5,414,184 (2016: $5,103,725). The
potential tax benefit of these losses at 30% is $1,624,255 (2016: $1,531,118).
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 6: TRADE AND OTHER RECEIVABLES
Current
Trade receivables (a)
Provision for impairment of receivables (b)
Other receivables (a)
Prepayments
Economic Entity
2017
$'000
2016
$'000
7,555
(59)
7,496
96
136
7,728
8,057
(160)
7,897
74
113
8,084
(a)
Current trade and other receivables are non‐interest bearing loans, generally between 30 and 60 day terms. A provision for
impairment is recognised when there is objective evidence that a trade or other receivable is impaired. These amounts
have been included in the other expenses item.
(b) Movement in the provision for impairment of receivables is as follows:
Current trade receivables
Opening balance
Charge for the year
Amounts written off
Closing balance
160
48
(149)
59
36
128
(4)
160
(c)
The economic entity's exposure to credit risk and impairment losses related to trade and other receivables is disclosed at
note 23.
NOTE 7: INVENTORIES
Current
Finished goods
Stock in transit
Provision for obsolescence (a)
(a) Movement in the provision for obsolescence is as follows:
Opening balance
Charge for the year
Amounts written off
Closing balance
11,859
1,085
12,944
(899)
12,045
768
412
(281)
899
12,244
1,466
13,710
(768)
12,942
803
637
(672)
768
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 8: CONTROLLED ENTITIES
Entity
Parent Entity
‐ Ambertech Limited
Subsidiaries of Ambertech Limited
‐ Amber Technology Limited
Subsidiaries of Amber Technology Limited
‐ Alphan Pty Limited
‐ Amber Technology (NZ) Limited
NOTE 9: PLANT AND EQUIPMENT
Non‐Current
Country of
Incorporation
Australia
Australia
Australia
New Zealand
Percentage Owned
2017
2016
100%
100%
100%
100%
100%
100%
Economic Entity
Plant and equipment
Furniture and fittings
Leasehold improvements
Leased plant and equipment
Total plant and equipment
Reconciliation of carrying amounts:
2017
Cost
Accumulated depreciation
2017
$'000
2016
$'000
2017
$'000
2016
$'000
Net carrying amount
2017
2016
$'000
$'000
1,327
484
1,412
171
3,394
1,247
484
1,412
171
3,314
(1,153)
(1,098)
(413)
(745)
(96)
(382)
(600)
(81)
(2,407)
(2,161)
174
71
667
75
987
149
102
812
90
1,153
Plant and
equipment
$'000
Furniture and
fittings
$'000
Leasehold
improvements
$'000
Leased plant
and
equipment
$'000
Total
$'000
Balance at the beginning of the year
Additions
Disposals
Depreciation and amortisation expense
Carrying amount at the end of the year
149
88
(2)
(61)
174
102
‐
‐
(31)
71
812
90
1,153
‐
‐
(145)
667
‐
‐
(15)
75
88
(2)
(252)
987
2016
Plant and
equipment
$'000
Furniture and
fittings
$'000
Leasehold
improvements
$'000
Leased plant
and
equipment
$'000
Total
$'000
Balance at the beginning of the year
Additions
Disposals
Depreciation and amortisation expense
Carrying amount at the end of the year
166
45
‐
(62)
149
135
‐
‐
(33)
102
958
106
1,365
‐
‐
(146)
812
‐
‐
(16)
90
45
‐
(257)
1,153
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 10: INTANGIBLE ASSETS
Non‐Current
Goodwill at cost
Less impairment
Website at cost
Less accumulated amortisation
Reconciliation of written down values:
Opening balance at 1 July 2016
Additions
Impairment
Amortisation expense
Closing balance at 30 June 2017
NOTE 11: TRADE AND OTHER PAYABLES
Current
Trade accounts payable
Other accounts payable
Amounts payable in foreign currencies:
Trade accounts payable:
‐ US Dollars
‐ British Pounds
‐ Euro
‐ Swiss Francs
‐ New Zealand Dollars
NOTE 12: OTHER FINANCIAL LIABILITIES
Current
Debtor Finance (a)
Lease Liability
Goodwill
$'000
‐
Website
$'000
7
‐
‐
‐
‐
‐
‐
‐
(7)
Total
$'000
7
(7)
‐
‐
‐
Economic Entity
2017
$'000
2016
$'000
2,970
(2,970)
‐
173
(173)
‐
‐
2,970
(2,970)
‐
173
(166)
7
7
3,667
2,933
6,600
1,948
331
170
166
461
3,076
4,393
‐
4,393
5,569
2,565
8,134
2,078
78
706
572
324
3,758
3,511
23
3,534
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 12: OTHER FINANCIAL LIABILITIES continued
Details of the economic entity's exposure to interest rate changes on other financial liabilities is outlined in note 23.
The fair value of the financial liabilities approximates their carrying value.
(a) Debtor finance
On 26 October 2016, the economic entity signed a new two year agreement with Scottish Pacific Business Finance. This
new agreement is an invoice discounting solution with approval up to $8.0M for Amber Technology Ltd and $1.3M for
Amber Technology (NZ) Ltd.
The economic entity breached a covenant in relation to the facility during the year. The breach has been set aside by
the lender with ongoing monitoring of the facility.
(b) Business Transaction Facility
On 16 June 2017 the economic entity entered into an agreement with Octet Finance Pty Ltd to provide a Business
Transaction Facility. The facility has a limit of $1.0M with no fixed term. As at 30 June 2017, the amount drawn under
this facility was $nil.
NOTE 13: PROVISIONS
Current
Service warranty
Employee benefits
Non Current
Employee benefits
(a) Service warranty
Economic Entity
2017
$'000
2016
$'000
255
1,359
1,614
143
143
158
1,422
1,580
200
200
Provision is made for the estimated warranty claims in respect of products sold which are still under warranty at balance
date. These claims are expected to be settled in the next financial year. Management estimates the provision based on
historical warranty claim information and any recent trends that may suggest future claims could differ from historical
amounts.
(b) Movements in provisions
Movements in provisions, other than employee benefits are set out below:
Opening balance at 1 July 2016
Additional provision recognised
Reductions resulting from payments
Closing balance at 30 June 2017
Service
warranty
$'000
158
280
(183)
255
(c) Amounts not expected to be settled within the next twelve months:
The current provisions for annual leave and long service leave include all unconditional entitlements where employees have
completed the required period of service. The entire amount is presented as current, since the economic entity does not
have an unconditional right to defer settlement. However, based on past experience, the economic entity does not expect
all employees to take the full amount of accrued leave or require payment within the next twelve months.
The following amounts reflect leave that is not expected to be taken within the next twelve months:
Current annual leave obligation expected to be settled after 12 months
Current long service leave obligation expected to be settled after 12 months
241
398
249
378
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 14: SHARE CAPITAL
Economic Entity
Economic Entity
2017
Shares
2016
Shares
#
2017
$'000
2016
$'000
Ordinary Shares fully paid (no par value)
30,573,181
30,573,181
11,138
11,138
Details
Balance 30 June 2016
Shares bought back
Balance 30 June 2017
No of shares
30,573,181
‐
30,573,181
$'000
11,138
‐
11,138
Voting Rights
On a show of hands, one vote for every registered shareholder, and for a poll, one vote for every share held by a
registered shareholder.
Options
At reporting date, there were 500,000 ordinary shares reserved for issue under options (2016:Nil)
NOTE 15: RESERVES
Foreign currency translation reserve (a)
Share base payments reserve (b)
32
1
33
31
‐
31
For an explanation of movements in reserve accounts refer to the Statement of Changes in Equity.
Nature and purpose of reserves
(a) Foreign currency translation reserve
Exchange differences arising on translation of the foreign controlled entity are taken to the foreign currency
translation reserve as described in note 2(r). The reserve is recognised in profit and loss when the net investment
is disposed of.
(b) Share Base Payments Reserve
The share based payments reserve is used to recognise the fair value of options issued but not exercised.
NOTE 16: CAPITAL & LEASING COMMITMENTS
(a) Operating lease commitments
Payable:
Not later than 1 year
Later than 1 year but not later than 5 years
Later than 5 years
Minimum lease payments
(a)
The Warriewood property lease is a non‐cancellable lease ending on 13 January
2023, with rent payable monthly in advance. Contingent rental provisions within the
lease agreement require that the minimum lease payments shall be increased at
review dates at 3.75% per annum.
(b) The economic entity had no commitments for capital expenditure as at 30 June 2017
(2016: Nil)
1,480
6,916
‐
8,396
1,463
7,351
860
9,674
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 17: CONTINGENT LIABILITIES
Estimates of the maximum amounts of contingent liabilities that
may become payable:
‐
Bank guarantees by Amber Technology Limited in respect of
various property leases
Economic Entity
2017
$'000
2016
$'000
638
638
638
638
No material losses are anticipated in respect of any of the above contingent liabilities.
NOTE 18: EVENTS SUBSEQUENT TO REPORTING DATE
There were no matters that have arisen since the end of the financial year that have significantly affected, or may
significantly affect the operations or state of affairs of the economic entity in future financial years.
NOTE 19: RELATED PARTY TRANSACTIONS
Key management personnel compensation
Key management personnel comprises directors and other persons having authority and responsibility for planning,
directing and controlling the activities of the economic entity.
Summary
‐ Short term employee benefits
‐ Post employment benefits
‐ Long term employee benefits
‐ Share‐based employee benefits
Economic Entity
2017
$
2016
$
1,189,440
1,184,049
174,650
13,362
1,434
1,378,886
163,961
(2,444)
‐
1,345,566
NOTE 20: SHARE BASED PAYMENT ARRANGEMENTS
On 24 November 2016, 500,000 share options were granted to Managing Director, Peter Amos under the Ambertech
Limited Executive Share Option Scheme to take up ordinary shares at an exercise price of $0.15 each. The options are
exercisable on or before 30 November 2021. The options hold no voting or dividend rights and are not transferable.
These options vest as follows:
(i) One third of the options have vested
(ii) One third vest on the first anniversary of the date of issue; and
(iii) The remaining one third will vest on the second anniversary of the date of issue.
Vesting subsequent to grant date is also subject to key management personnel meeting specified performance criteria.
Further details of these options are provided in the directors’ report. The options hold no voting or dividend rights but
have been listed. The options lapse when a director ceases their employment with the Group. During the financial year,
166,666 options vested with key management personnel (2016: Nil).
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 20: SHARE BASED PAYMENT ARRANGEMENTS (continued)
The consolidated entity established the Ambertech Limited Employee Share Option Plan on 5 November 2004 as a
long‐term incentive scheme to strive for improved group performance. The options are issued for no consideration
and carry no entitlements to voting rights or dividends of the Group. The number available to be granted is
determined by the Board and is based on performance measures including profitability, return on capital employed
and dividends.
The options are issued with a strike price representing a discount of 6% to the average market price of the
underlying shares determined at the time the shares were granted.
A summary of the movements of all options issued is as follows:
Options outstanding as at 1 July 2016
Granted
Foreited
Exercised
Expired
Number
‐
500,000
‐
‐
‐
Weighted Average
Exercise Price
‐
$0.15
‐
‐
‐
Options outstanding as at 30 June 2017
500,000
$0.15
Options exercisable as at 30 June 2017
Options exercisable as at 30 June 2016
‐
‐
‐
‐
The weighted average remaining contractual life of options outstanding at year‐end was 3.42 years. The exercise
price of outstanding shares at the end of the reporting period was $0.15.
The fair value of the options granted to key management personnel is considered to represent the value of the
employee services received over the vesting period.
The weighted average fair value of options granted during the year was $0.05 (2016: $Nil). These values were
calculated using the Black‐Scholes option pricing model applying the following inputs:
‐ Weighted average exercise price:
‐ Weigted average life of the option
‐ Expected share volitility
‐ Risk free interest rate
$0.15
5 Years
25%
2%
Historical share price volatility has been the basis for determining expected share price volatility as it is assumed
that this is indicative of future volatility.
The life of the options is based on the historical exercise patterns, which may not eventuate in the future.
These shares were issued as compensation to key management personnel of the Group. Further details are
provided in the directors’ report.
Included under employee benefits expense in the statement of profit or loss is $1,434, which relates to equity‐
settled share‐based payment transactions (2016: $Nil).
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 21: SEGMENT REPORTING
(a) Description of segments
Management has determined the operating segments based on the internal reports that are reviewed and used by the Board
of Directors in assessing performance and determining the allocation of resources.
The economic entity comprises the following operating segments:
Professional
Lifestyle Entertainment
New Zealand
(b) Segment information
2017
Revenue
‐
Total segment revenue
Inter‐segment revenue
‐
Revenue from external customers
Result
‐
Segment EBIT
‐ Unallocated / corporate result
‐ EBIT
‐
‐
Interest revenue
Interest and finance costs
‐ Profit before income tax
Income tax expense
‐
‐ profit for the year
Assets
‐
Segment Assets
‐ Unallocated/corporate assets
‐ Total assets
Liabilities
‐
Segment Liabilities
‐ Unallocated/corporate liabilities
‐
Total liabilities
Other
Distribution of high technology equipment to professional broadcast, film, recording
and sound reinforcement industries.
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.
Distribution of a wide range of quality products for both professional and consumer
markets in New Zealand.
Professional
$'000
Lifestyle
Entertainment
New Zealand
Eliminations
$'000
$'000
$'000
Economic
Entity
$'000
18,897
62
18,959
25,663
324
25,987
3,598
14
3,612
‐
(400)
(400)
48,158
‐
48,158
(44)
208
(143)
6,327
12,585
1,815
3,005
3,938
770
‐
‐
‐
‐
‐
21
(17)
4
18
(686)
(664)
30
(634)
20,727
2,249
22,976
7,713
5,055
12,768
88
88
259
259
‐
Acquisition of non current segment assets
32
49
‐
Depreciation and amortisation of segment assets
102
154
7
3
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 21: SEGMENT REPORTING (continued)
2016
Revenue
‐
Total segment revenue
Inter‐segment revenue
‐
Revenue from external customers
Result
‐ Segment EBIT
‐ Unallocated / corporate result
‐ EBIT
‐
‐
Interest revenue
Interest and finance costs
‐ Profit before income tax
Income tax expense
‐
‐ profit for the year
Assets
‐ Segment Assets
‐ Unallocated/corporate assets
‐ Total assets
Liabilities
‐
Segment Liabilities
‐ Unallocated/corporate liabilities
‐
Total liabilities
Other
Professional
$'000
Lifestyle
Entertainment
New Zealand
Eliminations
$'000
$'000
$'000
Economic
Entity
$'000
22,722
9
22,731
28,563
154
28,717
3,379
20
3,399
‐
(183)
(183)
54,664
‐
54,664
499
977
(256)
7,609
13,435
1,842
4,975
3,383
797
‐
‐
‐
‐
‐
1,220
(136)
1,084
17
(865)
236
1
237
22,886
1,422
24,308
9,155
4,313
13,468
45
45
266
266
‐
Acquisition of non current segment assets
18
27
‐
‐
Depreciation and amortisation of segment assets
106
158
2
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 21: SEGMENT REPORTING (continued)
(c) Segment information on geographical region
Segment Revenues from
Sales to External Customers
Carrying Amount of Segment
Non Current Assets
Acquisition of Non‐
Current Assets
2017
$'000
2016
$'000
2017
$'000
2016
$'000
2017
$'000
2016
$'000
Geographical Location
‐
Australia
‐ New Zealand
44,560
3,598
48,158
51,285
3,379
54,664
978
9
987
1,154
6
1,160
81
7
88
45
‐
45
(i) Carrying amount of segment non current assets
These amounts include all non current assets other than deferred tax assets located in the country of domicile.
(d) Other segment information
(i) Accounting Policies
Segment revenues and expenses are those directly attributable to the segments and include any joint revenues and
expenses where a reasonable basis of allocation exists. Segment assets include all assets used by a segment and consist
principally of cash, receivables, inventories and property, plant and equipment and goodwill. All remaining assets of the
economic entity are considered to be unallocated assets. Segment liabilities consist principally of accounts payable,
employee entitlements, accrued expenses, provisions and borrowings.
Segment assets and liabilities do not include income taxes.
(ii) Intersegment Transfers
Segment revenues, expenses and result include transfers between segments. The prices charged on intersegment
transactions are the same as those charged for similar goods to parties outside of the economic entity. These transfers
are eliminated on consolidation.
(iii) Major Customers
During the year ended 30 June 2017, $5,447,393 or 11% (2016: $7,535,289 or 14%) of the consolidated entity's external
revenue was derived from sales to a major Australian retailer through the Lifestyle Entertainment segment.
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 22: CASH FLOW INFORMATION
(i) Cash and cash equivalents
Cash and cash equivalents included in the statement of cash flows comprise
the following amounts:
Cash on hand
At call deposits with financial institutions
(ii) Reconciliation of net cash provided by operating activities to (Loss)/profit
after income tax
(loss)/profit for the year
Depreciation and amortisation
Net profit on disposal of plant and equipment
Foreign exchange (gain)
Impairment (income)/expense
Non‐cash share based payments
Changes in operating assets and liabilities
Decrease/(increase) in trade and other receivables
(Increase)/decrease in prepayments
Decrease in inventories
Decrease in tax receivable
(Decrease) in trade and other payables
(Decrease) in provisions
(Increase) in deferred taxes
Net cash (used in)/provided by operating activities
(iii) Non Cash Financing and Investing Activities
There were no non‐cash financing or investing activities during the financial year.
Economic Entity
2017
$'000
2016
$'000
4
1,010
1,014
(634)
259
(1)
(83)
(101)
1
586
(23)
896
‐
(1,555)
(23)
(30)
(708)
3
945
948
237
266
‐
(77)
128
‐
(851)
18
2,054
1
(932)
(114)
(11)
719
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 23: FINANCIAL RISK MANAGEMENT
The economic entity's financial risk management policies are established to identify and analyse the risks faced by the
business, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management
policies and systems are reviewed regularly to reflect changes in market conditions and the economic entity's activities.
The economic entity's activities expose it to a wide variety of financial risks, including the following:
credit risk
liquidity risk
‐
‐
‐ market risk (including foreign currency risk and interest rate risk)
This note presents information about the economic entity's exposure to each of the above risks, the objectives, policies
and processes for measuring and managing risk and how the economic entity manages capital.
Liquidity and market risk management is carried out by a central treasury department (Group Treasury) in accordance
with risk management policies. The Board has overall responsibility for the establishment and oversight of the risk
management framework. The Board, through the Audit and Risk Management Committee, oversees how management
monitors compliance with the risk management policies and procedures and reviews the adequacy of the risk
management framework in relation to risks.
The economic entity uses derivative financial instruments such as foreign exchange contracts to hedge certain risk
exposures. Derivatives are used exclusively for hedging purposes. The economic entity does not enter into or trade
financial instruments, including derivative financial instruments, for speculative purposes.
Credit Risk
Credit risk is the risk of financial loss to the economic entity if a customer or the counterparty to a financial instrument
fails to meet its contractual obligations, and arises principally from the economic entity's receivables from customers.
The maximum exposure to credit risk is the carrying amount of the financial assets.
Trade and other receivables
Exposure to credit risk is influenced mainly by the individual characteristics of each customer. The customer base
consists of a wide variety of customer profiles. New customers are analysed individually for creditworthiness, taking into
account credit ratings where available, financial position, past experience and other factors. This includes major
contracts and tenders approved by executive management. Customers that do not meet the credit policy guidelines may
only purchase using cash or recognised credit cards. The general terms of trade for the economic entity are between 30
and 60 days.
In monitoring credit risk, customers are grouped by their debtor ageing profile. Monitoring of receivable balances on an
ongoing basis minimises the exposure to bad debts.
Impairment allowance
The impairment allowance relates to specific customers, identified as being in trading difficulties, or where specific debts
are in dispute. The impairment allowance does not include debts past due relating to customers with a good credit
history, or where payments of amounts due under a contract for such customers are delayed due to works in dispute and
previous experience indicates that the amount will be paid in due course.
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 23: FINANCIAL RISK MANAGEMENT (continued)
The ageing of trade receivables at the reporting date was:
Not past due
Past due up to 30 days
Past due 31‐60 days
Past due 61 days and over
Total trade receivables not impaired
Trade receivables impaired
Total trade receivables
Economic Entity
2017
$'000
2016
$'000
3,670
3,055
398
373
7,496
59
7,555
4,790
2,628
358
121
7,897
160
8,057
The economic entity does not have other receivables which are past due (2016: Nil).
Liquidity Risk
Liquidity risk is the risk that the economic entity will not be able to meet its financial obligations as they fall due. The
economic entity's policy for managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity
(cash reserves and finance facilities) to meet its liabilities when due, under both normal and stressed conditions. The
objective of the policy is to maintain a balance between continuity of funding and flexibility through the use of finance
facilities.
The economic entity monitors liquidity risk by maintaining adequate cash reserves and financing facilities and by
continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities.
The table below summarises the maturity profile of the economic entity's financial liabilities based on contractual
undiscounted payments:
2017
Financial liabilities due for payment
Trade and other payables
Debtor Finance
Total expected outflows
Financial assets ‐ cash flows realisable
Trade receivables
Total anticipated inflows
Net (outflow) on financial instruments
Contractual Cash Flows
Within
1 Year
$'000
1 to 5
Years
$'000
Over 5
Years
$'000
3,667
4,757
8,424
7,496
7,496
(928)
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
Total
$'000
3,667
4,757
8,424
7,496
7,496
(928)
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 23: FINANCIAL RISK MANAGEMENT (continued)
Contractual Cash Flows
Within
1 Year
$'000
1 to 5
Years
$'000
Over 5
Years
$'000
2016
Financial liabilities due for payment
Trade and other payables
Debtor Finance
Lease Liability
Total expected outflows
Financial assets ‐ cash flows realisable
Trade receivables
Total anticipated inflows
5,569
3,782
24
9,375
7,897
7,897
Net (outflow) on financial instruments
(1,478)
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
Total
$'000
5,569
3,782
24
9,375
7,897
7,897
(1,478)
The economic entity also has a number of premises under operating lease commitments. The future contracted
commitment at year end is disclosed at note 16.
The carrying amounts of cash and cash equivalents, trade and other receivables and trade and other payables are
assumed to approximate their fair values due to their short term nature.
The fair value of debtor finance and lease liabilities is estimated by discounting the remaining contractural
maturities at the current market interest rate that is available for similar financial liabilities.
Market Risk
Market risk is the risk that changes in market prices will affect the economic entity's income or the value of its
holdings of financial instruments. The activities of the ecomonic entity expose it primarily to the financial risks of
changes in foreign currency rates and interest rates. The objective of market risk management is to manage and
control market risk exposures within acceptable parameters, whilst optimising the returns.
Foreign Currency Risk
The following table demonstrates the impact on the profit and equity of the economic entity, if the Australian
Dollar weakened/strengthened by 10%, which management consider to be reasonably possible at balance date
against the respective foreign currencies, with all other variables remaining constant:
Impact on profit/(loss)
Weakening of 10%
2017
2016
$'000
$'000
(342)
(418)
Impact on equity
(342)
(418)
Strengthening of 10%
2017
2016
$'000
$'000
280
280
342
342
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 23: FINANCIAL RISK MANAGEMENT (continued)
Interest Rate Risk
The economic entity has a debtor financing facility. The use of the facility exposes the economic entity to cash flow
interest rate risk.
As at the reporting date, the economic entity had the following fixed and variable rate borrowings:
Weighted average interest
rate
Note
2017
%
2016
%
Balance
2017
$'000
2016
$'000
Debtor Finance
12
8.31%
7.72%
4,392
3,511
The following table demonstrates the impact on the profit and equity of the economic entity if the average interest rate
on the borrowing facility had either increased or decreased by 1%, which management consider to be reasonably possible
over the whole year ending 30 June 2017, with all other variables remaining constant:
Increase of 1% of average
interest rate
Decrease of 1% of average
interest rate
2017
$'000
2016
$'000
2017
$'000
2016
$'000
(44)
(44)
(35)
(35)
44
44
35
35
Impact on profit/(loss)
Impact on equity
Net Fair Values
The net fair values of assets and liabilities approximate their carrying values. No financial assets or liabilities are readily
traded on organised markets.
Capital Management
The Board's aim is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to
sustain future development of the business. The Board seeks to maintain a balance between the higher returns that
might be possible with higher levels of borrowings and the advantages and security afforded by a sound capital position.
Total capital is defined as shareholders' equity. The Board monitors the return on capital, which is defined as net
operating income divided by total shareholders' equity. The Board also establishes a dividend payout policy which is
targeted as being greater than 50% of earnings, subject to a number of factors, including the capital expenditure
requirements and the company's financial and taxation position. Dividends paid for the year ended 30 June 2017 were nil
(2016: nil).
There were no changes to the economic entity's approach to capital management during the financial year.
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 24: EARNINGS PER SHARE
Basic earnings per share (cents)
Weighted average number of ordinary shares (number)
Earnings used to calculate basic earnings per share ($)
Diluted earnings per share (cents)
Weighted average number of ordinary shares (number)
Earnings used to calculate diluted earnings per share ($)
NOTE 25: DIVIDEND FRANKING CREDITS
Tax rate
Amount of franking credits available for subsequent reporting periods ($'000)
NOTE 26: AUDITORS' REMUNERATION
During the year the following fees were paid or payable for services provided by the
auditor of the parent and its related practices:
Audit services
BDO East Coast Partnership
Audit and review of financial reports, and other work under the Corporations Act
2001.
Total remuneration for audit services
Non‐audit services
BDO East Coast Partnership
Economic Entity
2017
2016
(2.1)
0.8
30,573,181
30,573,181
(634,000)
237,000
(2.1)
0.8
30,573,181
30,573,181
(634,000)
237,000
30%
6,139
30%
6,139
$
$
111,500
111,500
111,500
111,500
Tax compliance services, including review of company income tax returns
25,498
26,299
Other practices ‐ BDO Auckland
Tax compliance services, including review of company income tax returns
Total remuneration for non‐audit services
7,333
32,831
2,193
28,492
It is the economic entity's policy to employ BDO on assignments additional to their statutory audit duties where BDO's
expertise and experience with the economic entity are important. These assignments are principally tax compliance
assignments.
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 27: PARENT ENTITY INFORMATION
Information relating to Ambertech Limited (parent entity):
‐ Current Assets
‐ Total Assets
‐ Current Liabilities
‐ Total Liabilities
‐ Share capital
‐ Retained earnings
(Loss) of the parent entity
Total comprehensive income of the parent entity
Contingent Liabilites
The parent entity had no contingent liabilities as at 30 June 2017 (2016: Nil).
Parent Entity
2017
$'000
2016
$'000
11,044
15,601
1,462
1,462
11,045
15,602
1,462
1,462
11,138
11,138
3,002
3,002
(1)
(1)
‐
‐
Capital Commitments
The parent entity had no capital commitments for property, plant and equipment as at 30 June 2017 (2016: Nil)
Significant Accounting Policies
The accounting policies of the parent entity are consistent with those of the consolidated entity, as disclosed in note
1.
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
DIRECTORS' DECLARATION
The directors of the company declare that:
1.
The financial statements, comprising the statement of profit or loss and other comprehensive income,
statement of financial position, statement of cash flows, statement of changes in equity and accompanying
notes, are in accordance with the Corporations Act 2001 and:
(a)
comply with Accounting Standards and the Corporations Regulations 2001 ; and
(b)
give a true and fair view of the consolidated entity's financial position as at 30 June 2017 and of its
performance for the year ended on that date.
The company has included in the notes to the financial statements an explicit and unreserved statement of
compliance with International Financial Reporting Standards.
In the directors' opinion, there are reasonable grounds to believe that the company will be able to pay its debts
as and when they become due and payable.
The directors have been given the declarations by the chief executive officer and chief operating officer
required by Section 295A of the Corporations Act 2001.
2.
3.
4.
This declaration is made in accordance with a resolution of the Board of Directors persuant to section 295(5)(a) of
the Corporations Act 2001, and is signed for and on behalf of the directors by:
P F Wallace
Director
P A Amos
Director
Dated this 29th day of September 2017.
Sydney
Shareholders Information
The following information is required by the Australian Securities Exchange Limited.
Distribution of equity security by size of holding:
-
-
-
-
and
1,000
5,000
10,000
100,000
over
1
1,001
5,001
10,001
100,001
Total
Number of
shareholders
69
59
31
41
21
Number of
Ordinary Shares
62,932
217,198
275,550
1,404,872
28,612,629
% of total
capital
0.21
0.71
0.90
4.60
93.59
221
30,573,181
100.00
The number of security investors holding less than a marketable parcel of 3,847 securities is 94 and they hold
119,630 securities.
Equity Security Holders
The twenty largest shareholders as at 6 October 2017 were:
Rank
Twenty largest holders
1 Appwam Pty Limited
2 Crowton Pty Ltd (Amos Super Fund)
3 Howbay Pty Ltd
4 Wavelink Systems Pty Ltd
5 Wavelink Systems Pty Ltd (Employee Superannuation Fund)
6 Equity Management Group Pty Ltd
7 Wygrin Pty Ltd
8 Wygrin Pty Ltd (Wygrin Pension Fund)
9 Crowton Pty Limited
10 BNP Paribus Nominees Pty Ltd
11 Mr David Scicluna & Mr Anthony Scicluna
12 Mr Ralph McCleery
13 Wallace Capital Pty Ltd (Super Fund A/C)
14 Mr Joseph Paul Grech & Ms Deborah Lee Grech
15 Henriksen Consulting Pty Ltd (Henriksen Consulting S/F AC)
16 Super Accumulation Pty Ltd (M Robinson Super Fund A/C)
17 Mr David Le Cornu & Mrs Betty Le Cornu
18 Xanthippus Pty Ltd
19 Wallace Capital (Charwal A/C)
20 Eran Pty Ltd
Source: Link Market Services
Number of
shares
% of total
capital
7,850,697
3,231,681
2,883,556
2,784,625
2,650,000
1,952,484
1,507,556
1,488,270
1,082,162
452,948
395,903
357,599
333,928
333,261
315,059
250,000
220,000
155,300
152,600
110,000
25.68
10.57
9.43
9.11
8.67
6.39
4.93
4.87
3.54
1.48
1.29
1.17
1.09
1.09
1.03
0.82
0.72
0.51
0.50
0.36
28,507,629
93.24
Substantial Shareholders
Substantial shareholders with a relevant interest of 5% or more of total issued shares, based on notifications
provided to the company under the Corporations Act 2001 include:
Shareholder
Appwam Pty Limited
Wavelink Systems Pty Ltd
Crowton Pty Limited
Wygrin Pty Ltd
Howbay Pty Ltd
Equity Management Group Pty Ltd
On-Market Buy Back
Number of
shares
% of total
capital
7,850,697
5,484,625
4,313,843
2,995,826
2,883,556
1,952,484
25.68
17.94
14.11
9.80
9.43
6.39
On 2 September 2005, the company lodged an Appendix 3C announcing an on-market buy-back of up to
1,543,150 ordinary shares on issue. On 28 September 2006 the company lodged an Appendix 3D amending
the buy-back duration to unlimited. The company has not lodged an Appendix 3F to finalise the buy back as at
6 October 2017.
The buy back is a part of the company's capital management and is designed to improve shareholder returns.
During the year ended 30 June 2017 no shares were bought back by the company.
Voting rights
On a show of hands, one vote for every registered shareholder, and for a poll, one vote for every share held by
a registered shareholder.
Corporate Directory
Directors
Peter F Wallace - Chairman
Peter A Amos - Managing Director
Tom R Amos
Edwin F Goodwin
David R Swift
Bankers
Scottish Pacific Business Fi-
nance
Level 5, 20 Bond Street
Sydney NSW 2000
T: +61 2 9372 9999
Company Secretary
Robert J Glasson
Share Registry
Link Market Services
Locked Bag A14
South Sydney NSW 1235
or
Level 12, 680 George Street
Sydney NSW 2000
T: +61 2 8280 7111 or
T: 1300 554 474
Auditors
BDO East Coast Partnership
Level 11, 1 Margaret Street
Sydney NSW 2000
T: + 61 2 9251 4100
ASX Listing
AMO
ambertech.com.au
amberonline.com.au
Registered Office
Unit 1, 2 Daydream Street
Warriewood NSW 2102
T: +61 2 9998 7600
Melbourne
Suite 12, 79-83 High Street
Kew VIC 3101
T: +61 3 9853 0401
Brisbane
Unit 35, 28 Burnside Road
Yatala QLD 4207
T: +61 7 3287 2928
Auckland
Unit 3, 77 Porana Road
Glenfield, Auckland 0672
New Zealand
T: + 64 9 443 0753
Corporate Governance Statement
ambertech.com.au/investors/corporate-governance
Ambertech Limited
PO Box 955 Mona Vale
Unit 1, 2 Daydream St
Warriewood NSW 2102
Email: info@ambertech.com.au
Phone: 02 9998 7600
Fax: 02 9999 0770
ACN 079 080 158