M I S S I O N S T A T E M E N T
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.
C O N T E N T S
1.
2.
Letter to Shareholders
Financial Year 2021 Summary
3. Our Business
4. Our Brands
5.
6.
7.
8.
9.
Integrated Solutions Segment
Professional Segment
Retail Segment
Financial Report
Shareholders Information
10. Corporate Directory
L E T T E R T O S H A R E H O L D E R S
F I N A N C I A L Y E A R 2 0 21
S U M M A R Y
Results for the year ended 30 June
2021 % of
Sales
2020
% of
Sales
Sales Revenue
Integrated Solutions
Professional
Retail
Total
EBITDA
EBIT
Net Profit before tax
Net Profit after tax
45%
41%
14%
$36.3m
$32.5m
$11.3m
$80.1m
45%
41%
14%
$23.9m
$25.7m
$9.0m
$58.7m
$8.0m
10%
$3.3m
10%
$6.4m
$5.3m
$5.1m
8%
7%
6%
$1.9m
$0.5m
$0.8m
8%
7%
6%
Dear Shareholders,
On behalf of the Board and management of Ambertech we would like to present you with the
2021 Annual Report. It is very pleasing to be able to report on a very successful year in which the
company reported record sales and profit. We have also achieved strong operating cash flow that
has seen a significant reduction in the net debt of the business over the course of the year.
At various stages during the year the influence of COVID-19 generated significant challenges
to our traditional methods of conducting business. With the inability to travel, and with general
communication with clients and business partners being limited to phone and online interaction, our
team have had to remain agile and flexible. It is a credit to our fantastic team that these results have
been achieved during these uncertain times.
We were able to achieve organic growth across each of our business
segments, both in Australia and New Zealand. We have a very clear
strategy of providing each of our markets with the supply and support
of marketing leading brands. We are constantly evaluating methods
of achieving growth from our existing agencies.
A major driver of improved performance was our successful integration
of the acquired Hills AV business, and the full year contribution to
our results this year. This acquisition was part of a clear strategy to
leverage the investment that has previously been made in infrastructure
and people in our business, allowing us to scale our operation without
further adding substantial fixed cost.
We remain thorough in evaluating opportunities to further grow in
each of our market segments either through agency growth or via
acquisition. We also see further capacity in some of the markets that
have been more greatly impacted by COVID-19 as they rebound,
including tertiary education, live events, and the export market for our
Australian Monitor brand.
From an investor relations perspective we are working diligently on improving our engagement with
the market and on enhancing shareholder value through more consistent returns. We look forward
to welcoming as many of you as possible to our AGM in December where we will provide a further
update on trading for the current year.
On behalf of the Board of Ambertech Limited
Peter Wallace
Chairman
Peter Amos
Managing Director
O U R B U S I N E S S
Our business segments operate across both the Australian and New Zealand markets.
O U R B R A N D S
INTEGRATED SOLUTIONS SEGMENT
Supporting our dealer network with world class product solutions and support.
Residential installations
Audio visual and infrastructure brands for home cinema, multi room AV and more.
CommeeRCial installations
Audio visual and infrastructure brands for commercial custom installation projects.
PROFESSIONAL SEGMENT
Supporting a strong dealer network and a range of media and communications
users with world class product solutions and ongoing support including SaaS.
media systems
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.
defenCe, law enfoRCement and seCuRity
Specialised data communications and video technology for defence, law enforcement
and security.
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.
musiCal instRuments
Guitars, instrument and music technology for musicians of all levels.
RETAIL SEGMENT
Our focus is on offering a comprehensive selection of high end audio visual
and accessory brands for end users.
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.
AC Infinity
Accent Audio
Accent Visual
Advanced Network
Telemetry
David Horn
Communications
Dell EMC
Denon Pro
Digital Projection
Aja
DNH
Ambertec Cables
DPA Microphones
Arista
ASL
Ateme
Audalize
Australian Monitor
Autoscript
AVer
Avid
Aviwest
Barix
BATS Wireless
BirdDog
Black Mountain
Blue Lucy
Canare
Dynaudio Professional
Embrionix
Emotion Systems
Embrace
Evoko
EVS
Framus Guitars
GB Labs
Grandview Screens
Grass Valley
Haivision
HDAnywhere
Hotone
ICE Cables
iPort
Chiayo Electronics
James Loudspeaker
Cioks
CME
CP Cases
DALI
Jays
JTS Microphones
Learning Glass
Liberty AV
Litepanels
LP Morgan
MC2
MP Antennas
Neutrik
Sadowsky Guitars
Silvus Technologies
Solid State Logic
Sonance
Soundsphere
Newline Interactive
Spectra Logic
Newtek
Nexidia
NTi Audio
Nura
One For All
One Systems
Optoma
Pakedge
Panasonic
Strymon
SurgeX
Teenage Engineering
Telestream
Tonebone
Troll Systems
Van Damme
Videssence
Vinten
Peavey Media Matrix
Vipranet
Peterson
Walla Walla Guitars
Philips Projection
Warwick Basses
Plura
Primacoustic
Well AV
Williams AV
Radial Engineering
WolfVision
Rean
Woody Technologies
Renkus Heinz
WyreStorm
Ritcher
Rockboard
Xilica Audio Design
XTA Electronics
Rock-n-Roller
Yamaha Revolabs
Roland
I N T E G R A T E D S O L U T I O N S S E G M E N T
The 2021 Financial Year marked the first full year following the acquisition
of the Hills AV business and its integration into our Integrated Solutions business.
R E S I D E N T I A L
I N STA L L AT I O N S
In the specialist residential AV market
(residential installers and hi-fi dealers)
we experienced strong demand as
homeowners invested in entertainment
products to ease the burden of
prolonged lockdowns. Installed audio
products and home theatre projectors
sold heavily during this period.
Our Australian Monitor team successfully
launched a new range of products to complete
the ES series of entry level product. Ongoing
development of the state partner program
with key resellers has also been instrumental
in providing improved support for our
customers. Our research and development
team continue to develop new product despite
some redesigns required due to semiconductor
shortages in the industry.
Across the business, we have contended with
rising inbound freight charges, price increases
from suppliers and interruptions to the supply
chain. By carefully managing pricing – taking
into account the delicate balance between
competitive value and total cost of goods
sold – we were able to maintain appropriate
gross margins, which allowed us to deliver
the services our customers demand while
remaining strong and healthy for the future.
Dali iO Headphones and Rubicon Series
The Estate - Sonance
iPort
C O M M E R C I A L
I N S TA L L AT I O N S
In the commercial AV market, we experienced
pleasing growth, despite the impacts of COVID-19.
Some vertical markets (such as tertiary education
and transportation hubs) were impacted by
the many COVID-related travel restrictions and
lockdowns, but these were more than offset
by growth in horizontal applications such as
teleconferencing and distance education.
The addition of the customers, staff and brands
arising from the Hills transaction continued to
deliver economies of scale across the business:
more customers bought more products from our
larger and more effective sales team.
The situation was similar in New Zealand, although
the details of the COVID-19 restrictions were
somewhat different: more customers, more brands
and more staff on the ground contributed to solid
sales growth.
One Systems outdoor speakers
Bar83, Sydney Tower - Sonance
Silks Restaurant, Darwin - Australian Monitor
SimVis Flight Simulator
P R O F E S S I O N A L S E G M E N T
A I R L A N D S E A
C O M M U N I C A T I O N S Y S T E M S
VOICE
VIDEO
DATA
M E D I A SYST E M S
Despite the restrictions associated with COVID-19,
the Media Systems team were able to maintain
revenue as clients looked to adopt new
technologies to allow their operations to continue
around these same restrictions. Amber was able to
take advantage of the need for media companies
to look at new ways of working and to increase
operational efficiencies.
Significant projects for 2021 included Vinten
camera robotics for Seven and Nine, EVS upgrades
for Seven, SBS and TEN, and Telestream processing
for Fox Sports, Damsmart and Transmedia
Dynamics. We also completed the delivery of the
major EVS upgrade project
for the ABC.
Looking forward to the new financial year, the team
are pursuing a number of significant projects for
system refreshes, relocations and for the adoption
of new technologies. An expanded portfolio of
suppliers has opened new areas of business in
delivering Software as a Service (SaaS) and
Platform as a Services (PaaS) options.
We continue to pursue a growing client footprint
in New Zealand and new opportunities in ‘non-
traditional’ media areas.
D E F E N C E , L AW E N F O R C E M E N T
A N D S E C U R I T Y ( D L E S )
Significant contracts with defence and police
agencies, focused in WA, delivered results enabling
staff expansion with a full time support and
Business Development resource in that state. In the
face of COVID travel restrictions, this has proved
extremely beneficial through the deployment and
commissioning of major projects.
Significant deliveries in WA were made to West
Australian Police Force, Australian Army and WA
Department of Fire and Emergency Services.
A successful showing at the Land Forces conference
in Brisbane confirmed that our presence in this market
is widely accepted now, with many key primes and
other purchasing entities attending our stand and
indicating their comfort in doing business with us.
Our work with emergency services and the police
continues, with several new trials under way, and a
continuation of expansion for our in-service systems.
Vinten camera robotics
Vinten camera robotics at Seven Network
EVS upgrade at ABC Sydney
P R O F E SS I O N A L S E G M E N T ( C O N T )
P R O F E SS I O N A L P R O D U C TS
The Live entertainment sector showed signs of
recovery with Musical Theatre productions that
were running at limited capacity. This drove
sales of DPA Microphones for the year. Our
cable and connector business was strong and
led by the Neutrik brand. The demand came
from the AV Integrator sector with major refits
of Audio-Visual systems.
Primacoustic, which is an acoustic
treatment solution, increased turnover due
the requirement of home offices to have
enhanced speech intelligibility. NTi Audio
benefited from the many capital works being
undertaken such as Rail and Road projects
that require Noise Monitoring solutions that
comply with Australian Standards.
M U S I C A L I N ST R U M E N TS
The Musical Instruments (MI) market continues
to grow due to the demand for products
that are suitable for use during lockdowns.
Guitar pedals, guitars, prosumer electronics,
studio monitors plus accessories are at
unprecedented levels of demand.
Warwick and Sadowsky Bass Guitars coupled
with the Rockboard brand of accessories
contributed to a successful year. Solid State
Logic expanded their offerings in this sector and
we were able to capitalise even further on the
success of the previous year. The RocknRoller
brand of carts was introduced late in the year
and we will continue to grow this brand in the
next financial year.
Framus Guitar
Warwick Rockboard
Cam Trewin, Solid State Logic
Cam Trewin Audio, Solid State Logic
DPA Microphones new headsets
Rock-n-Roller carts
Curly Hendo and her Sadowsky Bass
Primacoustic studio installation
Solid State Logic
R E T A I L S E G M E N T
The 2020-21 Financial Year was one of
growth for the Retail segment of our business,
driven by our ability to adapt, adjust and
respond to market demands in the Consumer
Electronics (CE) retail market.
During the year we experienced increased
demand for CE products driven by the impact
that COVID-19 has had on lifestyles in
Australia and New Zealand.
Our achievements this year included:
• Expansion and upgrades to in-store
fixtures and merchandising to reflect
the changeover of models;
• Adjusting our product offering in Philips
Projection to meet consumer demand
addressing App based consumption
and use; and
• Continuing the expansion of products in
the visual category with Phillips Projection
and accessories, such as 2C screens.
Strymon products
Hotone Audio
Richter Guitar Straps
( M U S I C A L I N S T R U M E N TS C O N T )
New Zealand was, during the year, able to
return to a pre-pandemic lifestyle. So more
live events, education and conferences were
able to be conducted. This led to a traditional
return to business demand.
Our New Zealand operation was successful
in securing the Teenage Engineering brand
for the NZ market. This brand is a leader in
portable synthesisers and supports the strong
demand for prosumer products.
Subsequent to year end, we purchased the
business of Noise Toys Imports, which adds
some exciting new brands to the Amber MI
stable. Strymon, Hotone, Richter, Walla Walla
and Black Mountain are some well-known
and established brands which will broaden
our offering to the MI market in the new year.
OP1 - Teenage Engineering
Black Mountain thumb picks
OD11 - Teenage Engineering
One for All Remote Control Dump Bin
Philips promotional banners
We continue to provide support to our retail
partners in harnessing the digital space, by
showcasing experiential assets and value-added
content to improve our retailers’ digital platforms.
COVID-19 has had a significant impact on
traditional bricks and mortar retail, with closures
due to lockdowns, and thus has reduced foot
traffic into stores. The strength of retailers’
omnichannel presence was therefore paramount
to the success this financial year.
Across the Tasman, our channel partners have
dealt with COVID19 in a similar manner, and
we are well poised to benefit from strong
partnerships built on dealing with the volatility
in the industry.
Despite being physically separated, the Retail
sales team has maintained engagement with
supplier-partners, providing support to continue
growing our business.
The pandemic continues to challenge
international supply chains, where manufacturing
and shipping delays have impacted our efforts.
Despite this, we have been able to deliver on
our key objectives.
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 entities, ("company" or "consolidated entity" or "economic entity") for the year ended 30 June 2021
and the auditor's report thereon.
DDIIRREECCTTOORRSS
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.
IInnffoorrmmaattiioonn oonn ddiirreeccttoorrss
PPeetteerr FFrraanncciiss WWaallllaaccee
CChhaaiirrmmaann -- NNoonn EExxeeccuuttiivvee DDiirreeccttoorr
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 30 groups of companies. He was a non-executive
director of the listed entities THC Global Limited until 15 March 2018 and Range International Limited until 14 April 2020.
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.
PPeetteerr AAnnddrreeww AAmmooss
MMaannaaggiinngg DDiirreeccttoorr
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.
TThhoommaass RRoobbeerrtt AAmmooss
NNoonn--EExxeeccuuttiivvee DDiirreeccttoorr
Chairman of the Audit and Risk Management Committee.
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.
2
AMBERTECH LIMITED
AND CONTROLLED ENTITIES
ACN 079 080 158
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 JUNE 2021
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
DIRECTORS’ REPORT
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
DIRECTORS’ REPORT
SSaannttoo CCaarrlliinnii
NNoonn--EExxeeccuuttiivvee DDiirreeccttoorr
Mr Santo Carlini was appointed to the Board as a Non-Executive Director effective 1 March 2020.
Mr Carlini brings to the Ambertech Board key Audio-Visual industry experience in the major professional and installation
market segments, with over 20 years dedicated to achieving the best product and service outcomes for customers. Mr Carlini
is General Manager at WES Alliance Pty Ltd (WES). The company was founded in 1984 and since 1995 he has successfully
grown, first as part of the team and then as General Manager, the WES business from a specialist supplier of Electronic Parts to
a leading supplier of audio, visual products and solutions to the domestic and commercial installation market.
Mr Carlini has strong international products and supply experience. This expertise has been built from a business need to
match the continuous domestic market demands by sourcing products from around the world that are the best fit audio and
visual products to meet the demands of the competitive and evolving Australian marketplace.
DDaavviidd RRoossttiill SSwwiifftt
NNoonn--EExxeeccuuttiivvee DDiirreeccttoorr
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.
CCoommppaannyy SSeeccrreettaarryy aanndd CChhiieeff OOppeerraattiinngg OOffffiicceerr
The following person held the position of Company Secretary at the end of the financial year: RRoobbeerrtt JJoohhnn GGllaassssoonn
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.
CCOORRPPOORRAATTEE IINNFFOORRMMAATTIIOONN
NNaattuurree ooff ooppeerraattiioonnss aanndd pprriinncciippaall aaccttiivviittiieess
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.
EEmmppllooyyeeeess
The economic entity employed 126 employees as at 30 June 2021 (2020: 125 employees).
RREEVVIIEEWW AANNDD RREESSUULLTTSS OOFF OOPPEERRAATTIIOONNSS
The consolidated profit of the economic entity after providing for income tax for the financial year was $5,090,000 (2020:
$784,000). Profit increased significantly from 2020, primarily due to the realisation of economies of scale through growth of
the business. Total revenues for the financial year increased by 36.5% to $80,145,000 (2020: $58,720,000). 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.
FFIINNAANNCCIIAALL PPOOSSIITTIIOONN
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 decreased by $2,094,000 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 increased by $3,225,000 to $13,857,000
as at 30 June 2021 (2020: $10,632,000). The net assets of the economic entity have also increased by $3,735,000 to
$15,412,000 as at 30 June 2021 (2020: $11,677,000).
SSIIGGNNIIFFIICCAANNTT CCHHAANNGGEESS IINN TTHHEE SSTTAATTEE OOFF AAFFFFAAIIRRSS
There were no significant changes in the state of affairs of the economic entity during the financial year.
EEVVEENNTTSS SSUUBBSSEEQQUUEENNTT TTOO RREEPPOORRTTIINNGG DDAATTEE
The Directors have resolved to pay a dividend of 1.6 cents per share.
On 6 September 2021 the consolidated entity executed a Business Sale Agreement to purchase the business and assets of
Noise Toys. Consideration includes a cash payment of $558,000. The initial accounting for this business combination is yet to be
completed and, as such, disclosures in relation to the fair value of the assets and liabilities acquired and the composition of any
goodwill arising on acquisition cannot reliably be made at the date of this report.
There were no other 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.
FFUUTTUURREE DDEEVVEELLOOPPMMEENNTTSS,, PPRROOSSPPEECCTTSS AANNDD BBUUSSIINNEESSSS SSTTRRAATTEEGGIIEESS
The 2021-22 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.
EENNVVIIRROONNMMEENNTTAALL RREEGGUULLAATTIIOONN
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.
3
4
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
DIRECTORS’ REPORT
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
DIRECTORS’ REPORT
RREEMMUUNNEERRAATTIIOONN RREEPPOORRTT ((ccoonnttiinnuueedd))
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)
22002211
1.8
$0.225
5,090
22002200
-
$0.055
784
22001199
-
$0.10
(1,332)
22001188
-
$0.16
(143)
22001177
-
$0.15
(634)
DDeettaaiillss ooff RReemmuunneerraattiioonn
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:
NNaammee
P Wallace
P Amos
T Amos
D Swift
S Carlini
PPoossiittiioonn
Non-Executive Chairman
Group Managing Director
Non-Executive Director
Non-Executive Director
Non-Executive Director
NNaammee
R Glasson
R Neale
R Caston
PPoossiittiioonn
Group COO, Company Secretary
General Manager, Integrated Solutions
General Manager, Broadcast & Professional
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.
RREEMMUUNNEERRAATTIIOONN RREEPPOORRTT ((AAUUDDIITTEEDD))
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
2021 financial year. There has been no change in the remuneration of non-executive directors since 1 January 2010.
RReemmuunneerraattiioonn SSttrraatteeggyy
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.
OOtthheerr EExxeeccuuttiivveess
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.
5
6
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
DIRECTORS’ REPORT
RREEMMUUNNEERRAATTIIOONN RREEPPOORRTT ((ccoonnttiinnuueedd))
EElleemmeennttss ooff RReemmuunneerraattiioonn
22002211
DDiirreeccttoorrss
P Amos
P Wallace
T Amos
S Carlini
D Swift
Executives
R Glasson
R Caston
R Neale
SShhoorrtt--tteerrmm
eemmppllooyymmeenntt bbeenneeffiittss
PPoosstt eemmppllooyymmeenntt
bbeenneeffiittss
LLoonngg--tteerrmm
eemmppllooyymmeenntt
bbeenneeffiittss
SShhaarree
bbaasseedd
ppaayymmeennttss
SSaallaarryy
ffeeeess
aanndd lleeaavvee
$$
327,268
52,294
30,506
30,506
9,613
450,187
CCaasshh
BBoonnuuss
$$
95,000
-
-
-
-
95,000
SSuuppeerraannnnuuaattiioonn
$$
25,000
4,968
2,898
2,898
25,879
61,643
LLSSLL aaccccrruueedd//
((ttaakkeenn))
$$
7,061
-
-
-
-
7,061
OOppttiioonnss
$$
15,899
-
-
-
-
15,899
TToottaall
$$
470,228
57,262
33,404
33,404
35,492
629,790
%% PPeerrffoorrmmaannccee
RReellaatteedd
20.2%
0.0%
0.0%
0.0%
0.0%
15.1%
%% RReellaattiinngg
ttoo OOppttiioonnss
3.4%
0.0%
0.0%
0.0%
0.0%
2.5%
183,199
236,112
249,557
668,868
35,000
20,000
40,000
95,000
20,888
25,243
25,677
71,808
3,709
2,209
3,773
9,691
9,539
7,949
9,539
27,027
252,335
291,513
328,546
872,394
13.9%
6.9%
12.2%
10.9%
3.8%
2.7%
2.9%
3.1%
(1) On 29 June 2021, a cash bonus of $95,000 was paid to Mr P Amos relating to performance against KPI's. The bonus is 100% of the total available to Mr Amos
under his KPI scheme.
(2) On 29 June 2021, a cash bonus of $35,000 was paid to Mr Glasson relating to performance against KPI's. The bonus is 100% of the total available to Mr Glasson
under his KPI scheme.
(3) On 15 August 2020, a cash bonus of $20,000 was paid to Mr Caston relating to performance against KPI's. The bonus is 100% of the total available to Mr
(4)
Caston under his KPI scheme.
(2) Quarterly cash bonuses totalling $40,000 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.
22002200
DDiirreeccttoorrss
P Amos
P Wallace
T Amos
E Goodwin*
S Carlini**
D Swift
Executives
R Glasson
R Caston
R Neale
SShhoorrtt--tteerrmm
eemmppllooyymmeenntt bbeenneeffiittss
PPoosstt eemmppllooyymmeenntt
bbeenneeffiittss
LLoonngg--tteerrmm
eemmppllooyymmeenntt
bbeenneeffiittss
SShhaarree
bbaasseedd
ppaayymmeennttss
SSaallaarryy
ffeeeess
aanndd lleeaavvee
$$
379,027
53,211
31,041
24,083
6,957
9,782
504,101
CCaasshh
BBoonnuuss
$$
-
-
-
-
-
-
-
SSuuppeerraannnnuuaattiioonn
$$
25,000
5,055
2,949
2,288
661
25,193
61,1460
LLSSLL aaccccrruueedd//
((ttaakkeenn))
$$
7,066
-
-
-
-
-
7,066
OOppttiioonnss
$$
1,119
-
-
-
-
-
1,119
TToottaall
$$
412,212
58,266
33,990
26,371
7,618
34,975
573,432
%% PPeerrffoorrmmaannccee
RReellaatteedd
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
%% RReellaattiinngg
ttoo OOppttiioonnss
0.3%
0.0%
0.0%
0.0%
0.0%
0.0%
0.2%
190,689
203,494
253,151
647,334
50,000
24,700
19,500
94,200
22,443
24,875
23,026
70,344
3,709
3,527
3,103
10,329
-
-
-
-
266,841
256,586
298,780
822,207
18.7%
9.6%
6.5%
11.5%
0.0%
0.0%
0.0%
0.0%
(5) On 15 March 2020, a cash bonus of $50,000 was paid to Mr Glasson relating to performance against KPI's. The bonus is 58.8% of the total available to Mr
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
DIRECTORS’ REPORT
RREEMMUUNNEERRAATTIIOONN RREEPPOORRTT ((ccoonnttiinnuueedd))
SSeerrvviiccee aaggrreeeemmeennttss
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 $405,000 (2020: $380,000).
SShhaarree bbaasseedd ccoommppeennssaattiioonn
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 previously granted as remuneration which remain exercisable at year end are set out below.
P Amos
R Glasson
R Neale
R Caston
BBaallaannccee aatt bbeeggiinnnniinngg
BBaallaannccee aatt eenndd ooff yyeeaarr
166,667
-
-
-
-
75,000
75,000
62,500
During the financial year, 212,500 options vested with key management personnel (2020: Nil). None of these options were
exercised (2020: Nil).
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.
(6)
Glasson under his KPI scheme.
(1) On 15 August 2019, a cash bonus of $24,700 was paid to Mr Caston relating to performance against KPI's. The bonus is 98.8% 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 97.5% of the total available to Mr
Neale under his KPI scheme.
* E Goodwin resigned February 2020.
** S Carlini appointed March 2020.
(7)
7
8
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
DIRECTORS’ REPORT
RREEMMUUNNEERRAATTIIOONN RREEPPOORRTT ((ccoonnttiinnuueedd))
IInntteerreessttss ooff DDiirreeccttoorrss
At the date of this report the following interests were held by directors:
Director
P Wallace
P Amos
T Amos
D Swift
S Carlini
Ordinary Shares
22002211
2,441,878
4,935,055
7,214,925
3,086,735
28,065,287
22002200
2,341,878
4,768,388
7,214,925
3,086,735
28,065,287
VVoottiinngg aanndd CCoommmmeennttss mmaaddee aatt tthhee CCoommppaannyy’’ss 22002200 AAnnnnuuaall GGeenneerraall MMeeeettiinngg ((‘‘AAGGMM’’))
The Company received 86% of “for” votes in relation to its remuneration report for the year ended 30 June 2020. No issues
were raised with Directors concerning the Report.
This concludes the Remuneration Report which has been audited.
DDIIVVIIDDEENNDDSS
On 25 February 2021 the Board of Ambertech resolved to pay an interim dividend of 1.5 cents per share, fully franked. The
record date for the dividend was 5 March 2021, with a payment date of 31 March 2021.
On 26 August 2021 the Board of Ambertech resolved to pay a final dividend of 1.6 cents per share, fully franked. The record
date for the dividend is 20 September 2021, with a payment date of 5 October 2021. The Company’s Dividend Reinvestment
Plan will be active for this dividend, with a discount rate of 3% too the volume weighted average price of shares traded from 21
September 2021 to 24 September 2021.
DDIIRREECCTTOORRSS'' MMEEEETTIINNGGSS
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:
BBooaarrdd MMeeeettiinnggss
AAuuddiitt aanndd RRiisskk MMaannaaggeemmeenntt
CCoommmmiitttteeee MMeeeettiinnggss
NNoommiinnaattiioonn aanndd RReemmuunneerraattiioonn
CCoommmmiitttteeee
DDiirreeccttoorr
P Wallace
P Amos
T Amos
D Swift
S Carlini
AAtttteennddeedd
11
11
11
11
11
HHeelldd
11
11
11
11
11
AAtttteennddeedd
5
-
5
-
-
HHeelldd
5
-
5
-
-
AAtttteennddeedd
2
-
-
2
-
HHeelldd
2
-
-
2
-
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
DIRECTORS’ REPORT
NNOONN--AAUUDDIITT SSEERRVVIICCEESS
BDO Audit Pty Ltd continues in office in accordance with section 327 of the Corporations Act 2001.
It is the economic entity's policy to employ BDO Audit Pty Ltd and their respective related entities (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 29.
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.
PPRROOCCEEEEDDIINNGGSS OONN BBEEHHAALLFF OOFF TTHHEE CCOOMMPPAANNYY
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.
AAUUDDIITTOORRSS'' IINNDDEEPPEENNDDEENNCCEE DDEECCLLAARRAATTIIOONN
A copy of the auditors' independence declaration as required under section 307C of the Corporations Act 2001 is set out
on page 11.
IINNDDEEMMNNIIFFIICCAATTIIOONN OOFF OOFFFFIICCEERRSS
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.
RROOUUNNDDIINNGG
The company is of a kind referred to in Corporations Instrument 2016/191, issued by the Australian Securities and
Investments Commission, relating to 'rounding-off'. Amounts in this report have been rounded off in accordance with that
Corporations Instrument to the nearest thousand dollars, or in certain cases, the nearest dollar.
Signed in accordance with a resolution of directors.
Director:
P F Wallace
P A Amos
Dated this 29th day of September 2021
Sydney
9
10
Tel: +61 2 9251 4100
Fax: +61 2 9240 9821
www.bdo.com.au
Level 11, 1 Margaret St
Sydney NSW 2000
Australia
Tel: +61 2 9251 4100
Fax: +61 2 9240 9821
www.bdo.com.au
Level 11, 1 Margaret St
Sydney NSW 2000
Australia
DECLARATION OF INDEPENDENCE BY MARTIN COYLE TO THE DIRECTORS OF AMBERTECH LIMITED
INDEPENDENT AUDITOR'S REPORT
To the members of Ambertech Limited
As lead auditor of Ambertech Limited for the year ended 30 June 2021, I declare that, to the best of
my knowledge and belief, there have been:
Report on the Audit of the Financial Report
1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
Opinion
relation to the audit; and
2. No contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Ambertech Limited and the entities it controlled during the financial
year.
Martin Coyle
Director
BDO Audit Pty Ltd
Sydney, 29 September 2021
We have audited the financial report of Ambertech Limited (the Company) and its subsidiaries (the
Group), which comprises the consolidated statement of financial position as at 30 June 2021, the
consolidated statement of profit or loss and other comprehensive income, the consolidated statement
of changes in equity and the consolidated statement of cash flows for the year then ended, and notes
to the financial report, including a summary of significant accounting policies and the directors’
declaration.
In our opinion the accompanying financial report of the Group, is in accordance with the Corporations
Act 2001, including:
(i)
Giving a true and fair view of the Group’s financial position as at 30 June 2021 and of its
financial performance for the year ended on that date; and
(ii)
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s responsibilities for the audit of the Financial
Report section of our report. We are independent of the Group in accordance with the Corporations
Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s
APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code)
that are relevant to our audit of the financial report in Australia. We have also fulfilled our other
ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been
given to the directors of the Company, would be in the same terms if given to the directors as at the
time of this auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050
110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited
by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional
Standards Legislation.
11
BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO
Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of
BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member
firms. Liability limited by a scheme approved under Professional Standards Legislation.
12
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report of the current period. These matters were addressed in the context of
our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters.
Revenue recognition
Key audit matter
How the matter was addressed in our audit
As disclosed in Note 3, the Group recognised
To determine whether revenue was appropriately accounted for
revenue of $80,145,000 during the financial
and disclosed within the financial statements, we performed,
year ended 30 June 2021 (2020:
amongst others, the following audit procedures:
$58,720,000).
Due to the significant increase in revenue
during the year and the overall significance
of revenue to the Group as a key
performance indicator, we considered this
area to be a key audit matter.
•
•
•
•
Critically evaluated the revenue recognition policies for
all material revenue sources to ensure compliance with
AASB 15: Revenue from Contracts with Customers.
Performed substantive analytical procedures over
revenues and gross margins by segment and by product
group in comparison to the prior period, budget and our
expectations.
Testing the operating effectiveness of internal controls
surrounding the existence and occurrence of revenues
including performing substantive testing on the
appropriate recognition of customer rebates.
Performing detailed cut-off testing to ensure that
revenue transactions around the year end had been
recorded in the correct period including testing of post
year-end credit notes.
Valuation of inventory
Key audit matter
How the matter was addressed in our audit
As disclosed in Note 7, the Group held
Our audit procedures for addressing this key audit matter
inventory with a carrying value of
included, but were not limited to, the following:
$12,900,000 as at 30 June 2021 which
represented approximately 32% of the
Group’s total assets.
Inventory valuation was considered a key
audit matter due to the significant value of
these assets in the Consolidated Statement
of Financial Position and the key estimates
and judgements applied by management in
•
•
Observed the cyclical inventory count procedures
performed by management and assessed, by inspection,
whether there was any evidence of damaged or
obsolete inventory.
Tested a sample of inventory items on hand to initial
supplier invoices and subsequent sales invoices to
ascertain whether inventory was being recognised at
the lower of cost and NRV.
assessing the net realisable value (‘NRV’) of
inventory due to the nature of the industry
in which the Group operates in.
•
•
Assessed the assumptions applied by management in
determining the provision for obsolescence in
comparison to recent sales experience and the ageing
of inventory.
Performed various analytical procedures in relation to
inventory including analysing inventory turnover by
product group and gross margin in comparison to prior
periods and to expectations.
Other information
The directors are responsible for the other information. The other information comprises the
information in the Directors’ Report (excluding the audited Remuneration Report section) for the year
ended 30 June 2021, but does not include the financial report and the auditor’s report thereon, which
we obtained prior to the date of this auditor’s report, and the Annual Report to Shareholders, which is
expected to be made available to us after that date.
Our opinion on the financial report does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information that we obtained prior to the date
of this auditor’s report, we conclude that there is a material misstatement of this other information,
we are required to report that fact. We have nothing to report in this regard.
When we read the Annual Report to Shareholders, if we conclude that there is a material misstatement
therein, we are required to communicate the matter to the directors and will request that it is
corrected. If it is not corrected, we will seek to have the matter appropriately brought to the
attention of users for whom our report is prepared.
Responsibilities of the directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
13
2
14
3
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the
Auditing and Assurance Standards Board website at:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf
This description forms part of our auditor’s report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in the directors’ report under the heading
‘Remuneration Report’ for the year ended 30 June 2021.
In our opinion, the Remuneration Report of Ambertech Limited, for the year ended 30 June 2021,
complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility
is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with
Australian Auditing Standards.
BDO Audit Pty Ltd
Martin Coyle
Director
Sydney, 29 September 2021
15
4
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 2021
NNoottee
22002211
$$''000000
22002200
$$''000000
80,145
58,720
(54,405)
(40,478)
2255,,774400
1188,,224422
178
369
3
4
3
4
4
4
5
RReevveennuueess
Cost of sales
GGrroossss PPrrooffiitt
Other income
Employee benefits expense
Distribution costs
Marketing costs
Premises costs
Travel costs
Depreciation and amortisation expense
Finance costs
Other expenses
Acquisition and restructure costs
PPrrooffiitt bbeeffoorree iinnccoommee ttaaxx
Income tax (expense)/benefit
PPrrooffiitt aafftteerr iinnccoommee ttaaxx ffoorr tthhee yyeeaarr
OOtthheerr ccoommpprreehheennssiivvee iinnccoommee
Exchange differences on translation of foreign operations
TToottaall ccoommpprreehheennssiivvee iinnccoommee ffoorr tthhee yyeeaarr
(13,538)
(1,664)
(350)
(588)
(123)
(1,569)
(1,147)
(1,540)
(100)
55,,229999
(209)
55,,009900
(1)
55,,008899
EEaarrnniinnggss ppeerr sshhaarree
Basic earnings per share (cents)
Diluted earnings per share (cents)
27
27
6.7
6.6
The Consolidated Statement of Profit or Loss and Other Comprehensive Income is to be read in conjunction with the attached notes.
(10,926)
(1,408)
(388)
(367)
(391)
(1,358)
(1,467)
(1,132)
(705)
446699
315
778844
(61)
772233
1.4
1.4
16
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
FOR THE YEAR ENDED 30 JUNE 2021
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2021
CCUURRRREENNTT AASSSSEETTSS
Cash and cash equivalents
Trade and other receivables
Inventories
TTOOTTAALL CCUURRRREENNTT AASSSSEETTSS
NNOONN--CCUURRRREENNTT AASSSSEETTSS
Plant and equipment
Right-of-use asset
Intangible assets
Deferred tax assets
TTOOTTAALL NNOONN--CCUURRRREENNTT AASSSSEETTSS
TTOOTTAALL AASSSSEETTSS
CCUURRRREENNTT LLIIAABBIILLIITTIIEESS
Trade and other payables
Financial liabilities
Contract Liabilities
Lease liabilities
Provisions
Current tax liabilities
TTOOTTAALL CCUURRRREENNTT LLIIAABBIILLIITTIIEESS
NNOONN--CCUURRRREENNTT LLIIAABBIILLIITTIIEESS
Contract liabilities
Provisions
Lease liabilities
Deferred tax liabilities
TTOOTTAALL NNOONN--CCUURRRREENNTT LLIIAABBIILLIITTIIEESS
TTOOTTAALL LLIIAABBIILLIITTIIEESS
NNEETT AASSSSEETTSS
EEQQUUIITTYY
Share capital
Reserves
Accumulated losses
TTOOTTAALL EEQQUUIITTYY
NNoottee
22002211
$$''000000
22002200
$$''000000
25
6
7
9
10
11
5
12
14
13
15
16
5
13
16
15
5
17
18
1,788
14,804
12,900
2299,,449922
989
14,397
16,916
3322,,330022
442
5,640
1,118
3,118
1100,,331188
3399,,881100
7,323
2,676
1,428
1,199
2,306
703
717
6,407
1,068
2,652
1100,,884444
4433,,114466
10,437
4,770
3,331
938
2,194
-
1155,,663355
2211,,667700
174
235
8,345
9
88,,776633
2244,,339988
174
179
9,408
38
99,,779999
3311,,446699
1155,,441122
1111,,667777
15,947
(10)
(525)
15,915
(2)
(4,236)
1155,,441122
1111,,667777
The above Consolidated Statement of Financial Position is to be read in conjunction with the attached notes.
SShhaarree
CCaappiittaall
FFoorreeiiggnn
CCuurrrreennccyy
TTrraannssllaattiioonn
RReesseerrvvee
SShhaarree BBaasseedd
PPaayymmeennttss
RReesseerrvvee
AAccccuummuullaatteedd
lloosssseess
TToottaall
EEqquuiittyy
$$''000000
$$''000000
$$''000000
$$''000000
$$''000000
BBaallaannccee aass aatt 3300 JJuunnee 22001199
1111,,113388
Profit for the year
Exchange differences on translation of foreign
operations
TToottaall ccoommpprreehheennssiivvee iinnccoommee ffoorr tthhee yyeeaarr
TTrraannssaaccttiioonnss wwiitthh eeqquuiittyy hhoollddeerrss::
Share issue net of transaction cost
Costs of share based payments
BBaallaannccee aass aatt 3300 JJuunnee 22002200
BBaallaannccee aass aatt 11 JJuullyy 22002200
Profit for the year
Exchange differences on translation of foreign
operations
-
-
--
4,777
-
1155,,991155
1155,,991155
-
-
TToottaall ccoommpprreehheennssiivvee iinnccoommee ffoorr tthhee yyeeaarr
--
TTrraannssaaccttiioonnss wwiitthh eeqquuiittyy hhoollddeerrss::
Share issue net of transaction cost
Costs of share based payments
Dividends
25
7
--
5522
-
(61)
((6611))
-
-
((99))
((99))
-
(1)
((11))
-
-
--
BBaallaannccee aass aatt 3300 JJuunnee 22002211
1155,,994477
((1100))
66
--
-
--
-
1
77
77
-
--
--
-
(7)
--
--
((55,,002200))
66,,117766
784
784
-
778844
(61)
772233
-
-
4,777
1
((44,,223366))
1111,,667777
((44,,223366))
1111,,667777
5,090
5,090
-
(1)
55,,009900
55,,008899
-
-
25
-
((11,,337799))
((11,,337799))
((552255))
1155,,441122
The above Consolidated Statement of Changes in Equity is be read in conjunction with the attached notes.
17
18
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2021
CCAASSHH FFLLOOWWSS FFRROOMM OOPPEERRAATTIINNGG AACCTTIIVVIITTIIEESS
Receipts from customers
Receipts from government grants
Payments to suppliers and employees
Interest received
Interest and other costs of finance paid
Goods and services tax remitted
NNeett ccaasshh ffrroomm ooppeerraattiinngg aaccttiivviittiieess
CCAASSHH FFLLOOWWSS FFRROOMM IINNVVEESSTTIINNGG AACCTTIIVVIITTIIEESS
Payments for plant and equipment
Payment for intangible assets
Payment for the acquisition of business
NNeett ccaasshh uusseedd iinn iinnvveessttiinngg aaccttiivviittiieess
CCAASSHH FFLLOOWWSS FFRROOMM FFIINNAANNCCIINNGG AACCTTIIVVIITTIIEESS
Proceeds from borrowings
Repayment of borrowings
Repayment of leases
Proceeds from share issue
Dividends paid to shareholders
NNoottee
22002211
$$''000000
22002200
$$''000000
87,350
63,783
1,526
678
(76,159)
(57,189)
5
(1,147)
(6,048)
13
(1,467)
(4,491)
25
55,,552277
11,,332277
(253)
(224)
(200)
-
-
(4,611)
((447777))
((44,,881111))
332
(2,426)
(802)
25
(1,379)
24
(861)
(656)
4,777
-
NNeett ccaasshh ((uusseedd iinn))//pprroovviiddeedd bbyy ffiinnaanncciinngg aaccttiivviittiieess
((44,,225500))
33,,228844
Net increase/(decrease) in cash and cash equivalents held
Cash and cash equivalents at beginning of period
Effect of exchange rate changes on cash and cash equivalents held in foreign
currencies at the beginning of the financial year
800
989
(1)
CCaasshh aanndd ccaasshh eeqquuiivvaalleennttss aatt eenndd ooff ppeerriioodd
25
11,,778888
(200)
1,207
(18)
998899
The above Consolidated Statement of Cash Flows is to be read in conjunction with the attached notes.
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NNOOTTEE 11:: IINNTTRROODDUUCCTTIIOONN
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.
OOppeerraattiioonnss aanndd pprriinncciippaall aaccttiivviittiieess
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.
CCuurrrreennccyy
The financial statements are presented in Australian dollars, which is the Company’s functional and presentation currency.
All financial information presented in Australian dollars has been rounded to the nearest one thousand, unless otherwise
stated.
RReeggiisstteerreedd ooffffiiccee
Unit 1, 2 Daydream Street, Warriewood NSW 2102.
AAuutthhoorriissaattiioonn ooff ffiinnaanncciiaall ssttaatteemmeennttss
The financial statements were authorised for issue on 28 September 2021 by the Directors. The company has the power to
amend the financial statements.
NNOOTTEE 22:: SSUUMMMMAARRYY OOFF SSIIGGNNIIFFIICCAANNTT AACCCCOOUUNNTTIINNGG PPOOLLIICCIIEESS
((AA)) OOvveerraallll PPoolliiccyy
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 the going concern basis, which contemplates continuity of
normal business activities and the realisation of assets and the discharge of liabilities in the normal course of business.
On 11 March 2020, the WHO classified the COVID-19 outbreak as a pandemic. The pandemic has caused large scale
disruption and adverse economic conditions. Despite the pandemic , management were able to successfully implement
various operating efficiencies and manage the working capital position of the Group, the impact of which resulted in profit
after income tax growth of $5,090,000 (2020: $784,000) and net operating cash inflows of $5,527,000 (2020: $1,327,000).
Notwithstanding the degree of uncertainty that the COVID-19 pandemic continues to pose on the national economy, the
Directors believe that there are reasonable grounds to conclude that the Group will continue as a going concern, after
consideration of the following factors:
Management have prepared forecasts for the 12 months following date of approval of the financial report,
which indicate that the Group can continue to pay its debts as and when they become due and payable;
19
20
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NNOOTTEE 22:: SSUUMMMMAARRYY OOFF SSIIGGNNIIFFIICCAANNTT AACCCCOOUUNNTTIINNGG PPOOLLIICCIIEESS ((ccoonnttiinnuueedd))
The group continues to have available significant debt headroom on the primary business finance facilities of up
to $9,000,000 in invoice discounting and $1,000,000 in trade finance as disclosed in note 14;
In the event of continuing business challenges associated with the COVID-19 pandemic, management are
confident in being able to manage working capital through the pursuit of operating efficiencies.
((BB)) GGooooddss aanndd SSeerrvviicceess TTaaxx
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.
((CC)) GGoovveerrnnmmeenntt GGrraannttss
Government grants are recognised as income when it is reasonably certain that the Group will comply with the conditions
attached to them and when the right to receive payment is established. The Group has elected to recognise grant income
as an offset to the directly attributable expenditure in the financial statements.
New, revised or amending Accounting Standards and Interpretations adopted
The Consolidated Entity has adopted all of the new, revised or amending Accounting Standards and Interpretations issued
by the Australian Accounting Standards Board (‘AASB’) that are mandatory for the current reporting period. There was no
material impact on the financial statements from the adoption of these new accounting standards.
New Accounting Standards and Interpretations not yet mandatory or early adopted
The Consolidated Entity has adopted all of the new or amended Accounting Standards and Interpretations issued by the
Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period.
Any new or amended 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
NNOOTTEE 33:: RREEVVEENNUUEE
Revenue
- Sale of goods
- Rendering of services
- Interest received
EEccoonnoommiicc EEnnttiittyy
22002211
$$''000000
75,666
4,474
5
80,145
22002200
$$''000000
54,549
4,158
13
58,720
RReevveennuuee RReeccooggnniittiioonn
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 at a point in time when control transfers to the customer. In most cases this
coincides with the transfer of legal title, or the passing of possession to the customer. In arrangements whereby the
consolidated entity is required to meet contractually agreed upon specifications, control over the goods generally occurs when
the customer has confirmed acceptance.
Rendering of services
Revenue from the rendering of services is recognised at the point in time in which the service is provided to the customer.
Maintenance and support contracts usually extend for one year. Revenue is respect to these services are generally recognised
overtime as the customer simultaneously receives and consumes the benefits of the services as the Group provides the
services. Where amounts are invoiced before revenue is earned, a deferred revenue liability is brought to account. These
contract liabilities reflect the consideration received in respect of unsatisfied performance obligations.
Interest revenue
Interest revenue is recognised as it accrues using the effective interest method.
OOtthheerr iinnccoommee
‘Net Foreign exchange gains
Gain on asset sale
NNOOTTEE 44:: EEXXPPEENNSSEESS
Additional information on the nature of expenses
AA)) IInnvveennttoorriieess
Cost of sales
Movement in provision for inventory obsolescence
BB)) EEmmppllooyyeeee bbeenneeffiittss eexxppeennssee
Salaries and wages*
Defined contribution superannuation expense
Employee termination expense
Share-based payments expense
165
13
178
369
-
369
54,405
1,154
40,478
288
12,501
1,037
-
-
13,538
10,006
862
57
1
10,926
* Salaries and wages for FY20 & FY21 are both net of $1,101,750 in Government grants which was provided as a result of the
COVID-19 pandemic.
21
22
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NNOOTTEE 44:: EEXXPPEENNSSEESS ((ccoonnttiinnuueedd))
CC)) DDeepprreecciiaattiioonn
Plant and equipment
Furniture and fittings
Leasehold improvements
Leased property plant and equipment
Buildings right-of-use assets
Plant and equipment right-of-use assets
DD)) AAmmoorrttiissaattiioonn
Website costs
Customer/Supplier Relationships
Research & Development
EE)) BBaadd ddeebbttss aanndd eexxppeecctteedd ccrreeddiitt lloosssseess
FF)) RReennttaall eexxppeennssee oonn ooppeerraattiinngg lleeaasseess::
Minimum lease payments
GG)) FFiinnaannccee ccoossttss
Interest and finance charges paid/payable on borrowings
Interest and finance charges paid/payable on lease liabilities
NNOOTTEE 55:: IINNCCOOMMEE TTAAXX
AA)) MMaajjoorr ccoommppoonneennttss ooff iinnccoommee ttaaxx
Current year
Deferred tax
Income tax expense/(benefit)
BB)) RReeccoonncciilliiaattiioonn bbeettwweeeenn iinnccoommee ttaaxx aanndd pprriimmaa ffaacciiee ttaaxx oonn aaccccoouunnttiinngg pprrooffiitt//((lloossss))
Profit/(loss) before income tax
Entertainment
Tax at 30% (2020:30%)
Tax effect of non deductible expenses/non assessable income
Other items
Recognition of movements in deferred tax
Unused tax losses not recognised as deferred tax assets
Trading stock adjustments
Income tax expense/(benefit)
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NNOOTTEE 55:: IINNCCOOMMEE TTAAXX ((ccoonnttiinnuueedd))
CC)) AApppplliiccaabbllee ttaaxx rraattee
The applicable tax rate is the national tax rate in Australia of 30%.
DD)) AAnnaallyyssiiss ooff ddeeffeerrrreedd ttaaxx aasssseettss
Employee benefits
Plant and equipment
Right-of-use assets
Lease Liability
Accrued expenses
Provision for impairment of receivables
Provision for obsolescence
Provision for warranty
Inventory
Other
EE)) AAnnaallyyssiiss ooff ddeeffeerrrreedd ttaaxx lliiaabbiilliittiieess
Unrealised foreign currency gain
Other
EEccoonnoommiicc EEnnttiittyy
22002211
$$''000000
714
378
(1,677)
2,857
31
64
611
13
86
41
3,118
-
9
9
22002200
$$''000000
623
352
(1,921)
3,103
23
27
277
51
80
37
2,652
34
4
38
FF)) IInnccoommee TTaaxx
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.
24
EEccoonnoommiicc EEnnttiittyy
22002211
$$''000000
107
115
151
16
867
39
1,295
19
30
225
274
53
2
22002200
$$''000000
95
166
143
15
875
31
1,325
17
16
-
33
31
12
511
636
1,147
787
680
1,467
703
(494)
209
5,299
1,590
12
3
(1,381)
9
(24)
209
-
(315)
(315)
469
141
12
(7)
-
(307)
(154)
(315)
23
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NNOOTTEE 55:: IINNCCOOMMEE TTAAXX ((ccoonnttiinnuueedd))
Current and deferred tax balances attributable to amounts recognised directly in equity are also recognised directly in
equity.
GG)) TTaaxx ccoonnssoolliiddaatteedd ggrroouupp
Ambertech Limited and its Australian wholly owned controlled entities have implemented the tax consolidation
legislation.
The head entity, Ambertech Limited, and the controlled entities in the tax consolidated group continue to account for
their own current and deferred tax amounts. These tax amounts are measured as if each entity in the tax consolidated
group continues to be a ‘stand-alone taxpayer’ in its own right.
Current tax liabilities/assets and deferred tax assets arising from unused tax losses and tax credits are immediately
transferred to the head entity. The tax consolidated group has entered a tax sharing agreement whereby each company in
the group contributes to the income tax payable by the group in proportion to their contribution to the group’s taxable
income. Differences between the amounts of net tax assets and liabilities derecognised and the net amounts recognised
pursuant to the funding arrangement will be recognised as either a contribution by, or distribution to the head entity.
NNOOTTEE 66:: TTRRAADDEE AANNDD OOTTHHEERR RREECCEEIIVVAABBLLEESS
CCuurrrreenntt
Trade receivables
Allowance for expected credit losses
Other receivables
Prepayments
Deposits paid on goods to be delivered
EEccoonnoommiicc EEnnttiittyy
22002211
$$''000000
12,420
(216)
12,204
1,080
1,520
-
14,804
22002200
$$''000000
11,490
(90)
11,400
1,942
373
682
14,397
A) Current trade receivables are non-interest bearing loans, generally between 30 and 60 day terms.
Trade and other receivables are recognised initially at fair value and subsequently measured at amortised cost using
the effective interest method, less any expected credit loss.
B) An allowance for expected credit losses (ECLs) is required when a difference arises between the contracted cashflows
and the amount expected to be received, discounted at the original effective interest rate.
For trade receivables, a simplified approach is applied in calculating the ECLs. Loss allowances recognised are based
on lifetime ECLs at each reporting date. This is established from historical credit losses, adjusted for forward looking
factors specific to the receivable.
The consolidated entity has increased its monitoring of debt recovery as there is an increased probability of
customers delaying payment or being unable to pay, due to the Coronavirus (COVID-19) pandemic. As a result, the
amount of expected credit losses has increased since the previous corresponding period.
C) Movement in the allowance for expected credit losses is as follows:
Current trade receivables
Opening balance
Charge for the year
Amounts written off
Closing balance
90
171
(45)
216
D) The economic entity's exposure to credit risk and impairment losses related to trade and other receivables is
disclosed at note 26.
61
31
(2)
90
25
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NNOOTTEE 77:: IINNVVEENNTTOORRIIEESS
CCuurrrreenntt
Finished goods
Stock in transit
Provision for obsolescence
EEccoonnoommiicc EEnnttiittyy
22002211
$$''000000
13,571
1,409
14,980
(2,080)
12,900
22002200
$$''000000
15,826
2,016
17,842
(926)
16,916
AA))
IInnvveennttoorriieess
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.
BB)) PPrroovviissiioonn ffoorr iimmppaaiirrmmeenntt ooff iinnvveennttoorriieess
Movement in the provision for obsolescence is as follows:
Opening balance
Charge for the year
Amounts written off
Closing balance
926
170
984
2,080
640
873
(587)
926
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.
NNOOTTEE 88:: CCOONNTTRROOLLLLEEDD EENNTTIITTIIEESS
EEnnttiittyy
PPaarreenntt EEnnttiittyy
Ambertech Limited
SSuubbssiiddiiaarriieess ooff AAmmbbeerrtteecchh LLiimmiitteedd
Amber Technology Limited
SSuubbssiiddiiaarriieess ooff AAmmbbeerr TTeecchhnnoollooggyy LLiimmiitteedd
Alphan Pty Limited
Amber Technology (NZ) Limited
CCoouunnttrryy ooff IInnccoorrppoorraattiioonn
PPeerrcceennttaaggee OOwwnneedd
22002200
22002211
Australia
Australia
100%
100%
Australia
New Zealand
100%
100%
100%
100%
A controlled entity is any entity controlled by Ambertech Limited. Control exists where Ambertech Limited is exposed to, or has
rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to
direct the activities of the entity so that the other entity operates with Ambertech Limited to achieve the objectives of
Ambertech Limited.
All inter-company balances and transactions between entities in the economic entity, including any unrealised profits or losses,
have been eliminated on consolidation.
26
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NNOOTTEE 99:: PPLLAANNTT AANNDD EEQQUUIIPPMMEENNTT
NNoonn--CCuurrrreenntt
AA)) CCaarrrryyiinngg aammoouunnttss
CCoosstt
22002211
$$''000000
1,566
941
1,512
124
4,143
22002200
$$''000000
1,628
937
1,499
171
4,235
EEccoonnoommiicc EEnnttiittyy
Plant and equipment
Furniture and fittings
Leasehold improvements
Leased plant and equipment
Total plant and equipment
BB)) RReeccoonncciilliiaattiioonn ooff ccaarrrryyiinngg aammoouunnttss
AAccccuummuullaatteedd
ddeepprreecciiaattiioonn
22002211
$$''000000
22002200
$$''000000
NNeett ccaarrrryyiinngg aammoouunntt
22002211
$$''000000
22002200
$$''000000
(1,345)
(935)
(1,305)
(117)
(3,702)
(1,402)
(820)
(1,154)
(142)
(3,518)
221
6
208
7
442
22002211
Balance at the beginning of the year
Additions
Disposals
Depreciation and amortisation expense
Carrying amount at the end of the year
PPllaanntt aanndd
eeqquuiippmmeenntt
FFuurrnniittuurree aanndd
ffiittttiinnggss
LLeeaasseehhoolldd
iimmpprroovveemmeennttss
$$''000000
226
120
(18)
(107)
221
$$''000000
117
4
-
(115)
6
$$''000000
345
14
-
(151)
208
22002200
PPllaanntt aanndd
eeqquuiippmmeenntt
FFuurrnniittuurree
aanndd ffiittttiinnggss
LLeeaasseehhoolldd
iimmpprroovveemmeennttss
Balance at the beginning of the year
Additions
Additions on acquisition of HAV
Depreciation and amortisation expense
Carrying amount at the end of the year
CC)) RReeccooggnniittiioonn aanndd mmeeaassuurreemmeenntt
$$''000000
155
106
60
(95)
226
$$''000000
282
1
-
(166)
117
$$''000000
394
94
-
(143)
345
LLeeaasseedd ppllaanntt
aanndd
eeqquuiippmmeenntt
$$''000000
29
-
(6)
(16)
7
LLeeaasseedd ppllaanntt
aanndd
eeqquuiippmmeenntt
$$''000000
44
-
-
(15)
29
Plant and equipment is stated at historical cost less depreciation and impairment. Historical cost includes
expenditure that is directly attributable to the acquisition of the items.
DD)) DDeepprreecciiaattiioonn ooff pprrooppeerrttyy,, ppllaanntt aanndd eeqquuiippmmeenntt
Plant and equipment is depreciated over its estimated useful life taking into account estimated residual values. The
straight line method is used.
Plant and equipment is depreciated from the date of acquisition or, in respect of leasehold improvements, from the
time the asset is completed and ready for use.
226
117
345
29
717
TToottaall
$$''000000
717
138
(24)
(389)
442
TToottaall
$$''000000
875
201
60
(419)
717
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NNOOTTEE 99:: PPLLAANNTT AANNDD EEQQUUIIPPMMEENNTT ((ccoonnttiinnuueedd))
DD)).. DDeepprreecciiaattiioonn ooff pprrooppeerrttyy,, ppllaanntt aanndd eeqquuiippmmeenntt ((ccoonnttiinnuueedd))
The depreciation rates used for each class of plant and equipment remain unchanged from the previous year and are as
follows:
CCllaassss ooff AAsssseett
UUsseeffuull lliiffee
Plant and equipment
Furniture and fittings
Leasehold improvements
Leased plant and equipment
3-8 years
3-8 years
Term of the lease
Term of the lease
The carrying values of plant and equipment are reviewed for impairment when events or changes in circumstances indicate the
carrying value may not be recoverable. If any such indication exists and where the carrying values exceed the estimated
recoverable amount, the plant and equipment or cash generating units to which the plant and equipment belong are written
down to their recoverable amount.
NNOOTTEE 1100:: RRIIGGHHTT--OOFF--UUSSEE AASSSSEETTSS
NNoonn--CCuurrrreenntt
Land and buildings - right-of-use
Less: Accumulated amortisation
Plant and equipment - right-of-use
Less: Accumulated amortisation
Balance at 30 June 2020
Additions
Amortisation
Balance at 30 June 2021
EEccoonnoommiicc EEnnttiittyy
22002211
$$''000000
7,152
(1,678)
5,474
22002200
$$''000000
7,216
(875)
6,341
97
(31)
66
6,407
239
(73)
166
5,640
TToottaall
$$''000000
6,407
139
(906)
5,640
LLaanndd aanndd
bbuuiillddiinnggss
$$''000000
PPllaanntt aanndd
eeqquuiippmmeenntt
$$''000000
6,341
-
(867)
5,474
66
139
(39)
166
Land and buildings – right-of-use
The land and buildings right of use asset related to a lease for the consolidated entities property lease for its premises at Unit 1,
2 Daydream Street, Warriewood NSW 2102. The lease has a lease term of 10 years and 9 months commencing 14 April 2012
with rent payable monthly. An option exists to renew the lease at the end of this time for an additional term of 5 years with a
final expiry date being 13 January 2028. As at 30 June 2021 it is reasonably certain that the consolidated entity will exercise
this option to extend the lease and this has been included in the lease term. The lease has rent increases by 3.75% each year
and has a market rent increase in April each year.
27
28
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NNOOTTEE 1100:: RRIIGGHHTT--OOFF--UUSSEE AASSSSEETTSS ((ccoonnttiinnuueedd))
A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at cost, which
comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments made at or before the
commencement date net of any lease incentives received, any initial direct costs incurred, and, except where included in the
cost of inventories, an estimate of costs expected to be incurred for dismantling and removing the underlying asset, and
restoring the site or asset.
Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the estimated useful life of
the asset, whichever is the shorter. Where the consolidated entity expects to obtain ownership of the leased asset at the end
of the lease term, the depreciation is over its estimated useful life. Right-of use assets are subject to impairment or adjusted for
any remeasurement of lease liabilities.
The consolidated entity has elected not to recognise a right-of-use asset and corresponding lease liability for short-term leases
with terms of 12 months or less and leases of low-value assets. Lease payments on these assets are expensed to profit or loss
as incurred.
KKeeyy EEssttiimmaattee aanndd JJuuddggeemmeenntt:: LLeeaassee tteerrmm
The lease term is a significant component in the measurement of both the right-of-use asset and lease liability. Judgement is
exercised in determining whether there is reasonable certainty that an option to extend the lease or purchase the underlying
asset will be exercised, or an option to terminate the lease will not be exercised, when ascertaining the periods to be included
in the lease term. In determining the lease term, all facts and circumstances that create an economical incentive to exercise an
extension option, or not to exercise a termination option, are considered at the lease commencement date.
Factors considered may include the importance of the asset to the Groups operations; comparison of terms and conditions to
prevailing market rates; incurrence of significant penalties; existence of significant leasehold improvements; and the costs and
disruption to replace the asset. The Group reassesses whether it is reasonably certain to exercise an extension option, or not
exercise a termination option, if there is a significant event or significant change in circumstances.
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NNOOTTEE 1111:: IINNTTAANNGGIIBBLLEE AASSSSEETTSS
NNoonn--CCuurrrreenntt
NNeett ccaarrrryyiinngg aammoouunnttss aanndd mmoovveemmeennttss dduurriinngg tthhee yyeeaarr
Goodwill at cost
Less impairment
Website at cost
Less accumulated amortization
Brand name
Less impairment
Customer/Supplier relationships
Less accumulated amortisation
Research & Development
Less accumulated amortisation
EEccoonnoommiicc EEnnttiittyy
22002211
$$''000000
3,716
(2,926)
790
94
(60)
34
100
-
100
150
(46)
104
315
(225)
90
1,118
22002200
$$''000000
3,760
(2,970)
790
85
(41)
44
100
-
100
150
(16)
134
-
-
-
1,068
RReeccoonncciilliiaattiioonn ooff wwrriitttteenn ddoowwnn vvaalluueess::
GGooooddwwiillll
WWeebbssiittee
BBrraanndd nnaammee
Opening balance at 1 July 2020
Additions
Amortisation expense
Closing balance at 30 June 2021
$$''000000
790
-
-
790
$$''000000
44
9
(19)
34
$$''000000
100
-
-
100
CCuussttoommeerr//SSuupppplliieerr
rreellaattiioonnsshhiippss
RReesseeaarrcchh
DDeevveellooppmmeenntt
TToottaall
$$''000000
134
-
(30)
104
$$''000000 $$''000000
- 1,068
324
(274)
90 1,118
315
(225)
RReeccooggnniittiioonn aanndd mmeeaassuurreemmeenntt
AA)) GGooooddwwiillll
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.
Where the recoverable amount of the cash generating unit is less than the carrying amount, an impairment loss is recognised.
IImmppaaiirrmmeenntt ooff AAsssseettss
BB))
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
29
30
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NNOOTTEE 1111:: IINNTTAANNGGIIBBLLEE AASSSSEETTSS ((ccoonnttiinnuueedd))
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).
The consolidated entity determined the recoverable amount of assets based on a value-in-use calculation, using cash flow
projections based on financial budgets approved by management covering a five-year period. The following assumptions
have been applied by management in the 30 June 2021 calculation of value-in-use based on past performance and
expectations for the future:
Annual sales growth of between 5% - 8% over the five-year forecast period
Terminal value factor of 1.78
Post-tax discount rate of 12.20%
Management have performed sensitivity analysis and assessed reasonable changes for key assumptions and have not
identified any instances that could cause the carrying amount of the consolidated entity’s assets to exceed its recoverable
amount.
If there is evidence of impairment for any of the company’s assets, the loss is measured as the difference between the asset’s
carrying amount and the recoverable amount. The loss is recognised in the statement of profit or loss and other
comprehensive income.
CC)) WWeebbssiittee CCoossttss
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 5 years.
DD)) CCuussttoommeerr//SSuupppplliieerr RReellaattiioonnsshhiippss
Significant costs associated with customer/supplier costs on acquisition are deferred and amortised on a straight-line basis over
the period of their expected benefit, being a finite life of 5 years.
EE)) BBrraanndd NNaammeess
Brand names have an indefinite useful life and are not subject to amortisation but are tested annually for impairment, or more
frequently if events or changes in circumstances indicate that they might be impaired.
FF)) RReesseeaarrcchh && DDeevveellooppmmeenntt
Research costs are expensed in the period in which they are incurred. Development costs are capitalised when it is probable
that the project will be a success considering its commercial and technical feasibility; the consolidated entity is able to use or
sell the asset; the consolidated entity has sufficient resources and the intent to complete the development; and its costs can be
measured reliably.
31
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NNOOTTEE 1122:: TTRRAADDEE AANNDD OOTTHHEERR PPAAYYAABBLLEESS
CCuurrrreenntt
Trade accounts payable
Other accounts payable
EEccoonnoommiicc EEnnttiittyy
22002211
$'000
4,238
3,085
7,323
22002200
$'000
7,984
2,453
10,437
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.
AAmmoouunnttss ppaayyaabbllee iinn ffoorreeiiggnn ccuurrrreenncciieess::
Trade accounts payable:
-
-
-
-
-
US Dollars
British Pounds
Euro
Swiss Francs
New Zealand Dollars
NNOOTTEE 1133:: CCOONNTTRRAACCTT LLIIAABBIILLIITTIIEESS
CCuurrrreenntt
Deferred Revenue
NNoonn CCuurrrreenntt
Deferred Revenue
NNOOTTEE 1144:: FFIINNAANNCCIIAALL LLIIAABBIILLIITTIIEESS
CCuurrrreenntt
Debtor finance
Business transaction facility
2,636
118
262
16
692
3,724
1,428
174
1,602
1,896
780
2,676
3,020
227
378
552
465
4,642
3,331
174
3,505
4,538
232
4,770
Details of the economic entity's exposure to interest rate changes on financial liabilities is outlined in note 26.
The fair value of the financial liabilities approximates their carrying value.
AA)) DDeebbttoorr ffiinnaannccee
On 9 July 2020, the economic entity entered into an agreement with Octet finance Pty Ltd in relation to a new two
year invoice discounting solution. The facility has approval up to $9,000,000. The Scottish Pacific Business Finance
Facility was paid out using funds from this new facility in September 2020.
The economic entity did not breach any covenants during the financial year.
BB)) BBuussiinneessss ttrraannssaaccttiioonn ffaacciilliittyy
On 9 July 2020 the economic entity entered into an agreement with Octet Finance Pty Ltd to extend the Business
Transaction Facility with an increased limit of $1,000,000 with no fixed term. As at 30 June 2021, the amount drawn under
this facility was $441,745. Additionally, there is a Scottish Pacific Business Finance facility held in New Zealand with no
fixed term and a limit of $1,209,865. As at 30 June 2021 the amount drawn under this facility was $338,172.
CC)) BBoorrrroowwiinnggss
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
32
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NNOOTTEE 1144:: FFIINNAANNCCIIAALL LLIIAABBIILLIITTIIEESS ((ccoonnttiinnuueedd))
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.
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.
NNOOTTEE 1155:: LLEEAASSEE LLIIAABBIILLIITTIIEESS
CCuurrrreenntt
Lease liabilities
NNoonn CCuurrrreenntt
Lease liabilities
EEccoonnoommiicc EEnnttiittyy
22002211
$'000
22002200
$'000
1,199
938
8,345
9,408
A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the present value
of the lease payments to be made over the term of the lease, discounted using the interest rate implicit in the lease or, if that
rate cannot be readily determined, the consolidated entity's incremental borrowing rate. Lease payments comprise of fixed
payments less any lease incentives receivable, variable lease payments that depend on an index or a rate, amounts expected to
be paid under residual value guarantees, exercise price of a purchase option when the exercise of the option is reasonably
certain to occur, and any anticipated termination penalties. The variable lease payments that do not depend on an index or a
rate are expensed in the period in which they are incurred.
Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are remeasured if
there is a change in the following: future lease payments arising from a change in an index or a rate used; residual guarantee;
lease term; certainty of a purchase option and termination penalties. When a lease liability is remeasured, an adjustment is
made to the corresponding right-of use asset, or to profit or loss if the carrying amount of the right-of-use asset is fully written
down.
KKeeyy EEssttiimmaattee aanndd JJuuddggeemmeenntt:: IInnccrreemmeennttaall bboorrrroowwiinngg rraattee
Where the interest rate implicit in a lease cannot be readily determined, an incremental borrowing rate is estimated to
discount future lease payments to measure the present value of the lease liability at the lease commencement date. Such a
rate is based on what the Group estimates it would have to pay a third party to borrow the funds necessary to obtain an asset
of a similar value to the right-of-use asset, with similar terms, security and economic environment.
NNOOTTEE 1166:: PPRROOVVIISSIIOONNSS
CCuurrrreenntt
Service warranty
Employee benefits
NNoonn CCuurrrreenntt
Employee benefits
335
1,971
2,306
235
235
297
1,897
2,194
179
179
AA)) SSeerrvviiccee wwaarrrraannttyy
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.
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NNOOTTEE 1166:: PPRROOVVIISSIIOONNSS ((ccoonnttiinnuueedd))
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.
Movements in provisions, other than employee benefits are set out below:
Opening balance at 1 July 2020
Additional provision recognised
Reductions resulting from payments
Closing balance at 30 June 2021
SSeerrvviiccee wwaarrrraannttyy
$$''000000
297
(142)
180
335
BB)) EEmmppllooyyeeee bbeenneeffiittss
Short term employee benefits are employee benefits (other than termination benefits and equity compensation benefits)
which fall due wholly within 12 months after the end of the period in which employee services are rendered. They comprise
wages, salaries, commissions, social security obligations, short-term compensation absences and bonuses payable within 12
months and non-mandatory benefits such as car allowances.
The undiscounted amount of short-term employee benefits expected to be paid is recognised as an expense.
Other long-term employee benefits include long-service leave payable 12 months or more after the end of the financial year.
The liability for long service leave is recognised and measured at the present value of the estimated future cash flows to be
made in respect of all employees at the reporting date. In determining the present value of the liability, estimates of attrition
rates and pay increases through promotion and inflation have been taken into account.
CC)) AAmmoouunnttss nnoott eexxppeecctteedd ttoo bbee sseettttlleedd wwiitthhiinn tthhee nneexxtt ttwweellvvee mmoonntthhss::
The current provisions for annual leave and long service leave include all unconditional entitlements where employees
have completed the required period of service. The entire amount is presented as current, since the economic entity
does not have an unconditional right to defer settlement. However, based on past experience, the economic entity does
not expect all employees to take the full amount of accrued leave or require payment within the next twelve months.
The following amounts reflect leave that is not expected to be taken within the next twelve months:
Current annual leave obligation expected to be settled after 12 months
Current long service leave obligation expected to be settled after 12 months
EEccoonnoommiicc EEnnttiittyy
22002211
$$''000000
386
438
22002200
$$''000000
383
432
33
34
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NNOOTTEE 1177:: SSHHAARREE CCAAPPIITTAALL
AA)).. OOrrddiinnaarryy SShhaarreess ffuullllyy ppaaiidd ((nnoo ppaarr vvaalluuee))
76,621,662
76,454,995
15,947
15,915
EEccoonnoommiicc EEnnttiittyy
22002211
SShhaarreess
22002200
SShhaarreess
EEccoonnoommiicc EEnnttiittyy
22002211
$$''000000
22002200
$$''000000
MMoovveemmeennttss iinn sshhaarree ccaappiittaall
Balance at the start of the financial year
DDaattee
SShhaarreess
NNoo..
76,454,995
IIssssuuee PPrriiccee
$$
Shares issued on exercise of Options
Cost of share based payments
02/03/2021
02/03/2021
166,666
-
0.15
BBaallaannccee aatt tthhee eenndd ooff tthhee ffiinnaanncciiaall yyeeaarr
76,621,662
TToottaall
$$,,000000
15,915
25
7
15,947
BB)).. VVoottiinngg RRiigghhttss
On a show of hands, one vote for every registered shareholder, and for a poll, one vote for every share held by a registered
shareholder.
CC)).. OOppttiioonnss
At reporting date, there were 2,100,000 ordinary shares reserved for issue under the Employee Share Option Plan (2020:
166,667).
DD)).. DDiivviiddeennddss
Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the discretion of
the entity, on or before the end of the year but not distributed at balance date.
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NNOOTTEE 1188:: RREESSEERRVVEESS
Foreign currency translation reserve
Share base payments reserve
EEccoonnoommiicc EEnnttiittyy
22002211
$$''000000
(10)
-
(10)
22002200
$$''000000
(9)
7
(2)
For an explanation of movements in reserve accounts refer to the Statement of Changes in Equity.
NNaattuurree aanndd ppuurrppoossee ooff rreesseerrvveess
FFoorreeiiggnn ccuurrrreennccyy ttrraannssllaattiioonn rreesseerrvvee
The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on consolidation, are
translated to Australian dollars at exchange rates prevailing at the balance sheet date. The revenues and expenses of
foreign operations are translated to Australian dollars at rates approximating to the exchange rates prevailing at the dates
of the transactions.
Exchange differences arising on translation of the foreign controlled entity are taken to the foreign currency translation
reserve. The reserve is recognised in profit and loss when the net investment is disposed of.
SShhaarree BBaassee PPaayymmeennttss RReesseerrvvee
The share based payments reserve is used to recognise the fair value of options issued but not exercised.
NNOOTTEE 1199:: CCAAPPIITTAALL
CCaappiittaall CCoommmmiittmmeennttss
The economic entity had no commitments for capital expenditure as at 30 June 2021 (2020: Nil).
NNOOTTEE 2200:: CCOONNTTIINNGGEENNTT LLIIAABBIILLIITTIIEESS
Estimates of the maximum amounts of contingent liabilities that may become payable:
- Bank guarantee by Amber Technology Limited in respect of Sydney property lease
No material losses are anticipated in respect of any of the above contingent liabilities.
NNOOTTEE 2211:: EEVVEENNTTSS SSUUBBSSEEQQUUEENNTT TTOO RREEPPOORRTTIINNGG DDAATTEE
The Directors have resolved to pay a dividend of 1.6 cents per share.
EEccoonnoommiicc EEnnttiittyy
22002211
$$''000000
612
612
22002200
$$''000000
612
612
On 6 September 2021 the consolidated entity executed a Business Sale Agreement to purchase the business and assets of Noise
Toys. Consideration includes a cash payment of $558,000. The initial accounting for this business combination is yet to be
completed and, as such, disclosures in relation to the fair value of the assets and liabilities acquired and the composition of any
goodwill arising on acquisition cannot reliably be made at the date of this report.
Other than the above, 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.
35
36
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NNOOTTEE 2222:: RREELLAATTEEDD PPAARRTTYY TTRRAANNSSAACCTTIIOONNSS
KKeeyy mmaannaaggeemmeenntt ppeerrssoonnnneell ccoommppeennssaattiioonn
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
EEccoonnoommiicc EEnnttiittyy
22002211
22002200
1,309,055
1,245,635
133,451
131,490
16,752
17,395
42,926
1,502,184
1,119
1,395,639
NNOOTTEE 2233:: SSHHAARREE BBAASSEEDD PPAAYYMMEENNTT AARRRRAANNGGEEMMEENNTTSS
On 18 December 2020, 2,100,000 share options were granted under the Ambertech Limited Executive Share Option Scheme to
take up ordinary shares at an exercise price of $0.22 each. The options are exercisable on or before 18 December 2025. The
options hold no voting or dividend rights and are not transferable.
These options vest as follows:
I.
II.
III.
IV.
One quarter of the options have vested (tranche 1)
One quarter of the options vest on 30 September 2021
One quarter of the options vest on 30 September 2022; and
One quarter of the options vest on 30 September 2023.
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, 212,500 options vested
with key management personnel (2020: Nil).
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:
OOppttiioonnss oouuttssttaannddiinngg aass aatt 11 JJuullyy 22002200
Granted
Foreited
Exercised
Expired
OOppttiioonnss oouuttssttaannddiinngg aass aatt 3300 JJuunnee 22002211
Options exercisable as at 30 June 2021
Options exercisable as at 30 June 2020
NNuummbbeerr
WWeeiigghhtteedd
AAvveerraaggee EExxeerrcciissee
PPrriiccee
116666,,666677
2,100,000
-
166,667
-
22,,110000,,000000
400,000
166,667
$$00..1155
$0.22
-
-
-
$$00..2222
$0.22
$0.15
37
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NNOOTTEE 2233:: SSHHAARREE BBAASSEEDD PPAAYYMMEENNTT AARRRRAANNGGEEMMEENNTTSS ((ccoonnttiinnuueedd))
The weighted average remaining contractual life of options outstanding at year-end was 4.5 years. The exercise price of
outstanding shares at the end of the reporting period was $0.22.
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.
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.
The value of the options is recognised in an option reserve until the options are exercised, forfeited or expire.
The weighted average fair value of options granted during the year was nil (2020: Nil). These values were calculated using the
Black-Scholes option pricing model applying the following inputs:
- Weighted average exercise price:
- Weighted average life of the option
-
-
Expected share volatility
Risk free interest rate
$0.22
5 Years
50%
1.20%
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.
38
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NNOOTTEE 2244:: SSEEGGMMEENNTT RREEPPOORRTTIINNGG
(a) Description of segments
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NNOOTTEE 2244:: SSEEGGMMEENNTT RREEPPOORRTTIINNGG ((ccoonnttiinnuueedd))
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.
22002200
The economic entity comprises the following operating segments:
Retail
Distribution of home entertainment solutions to dealers.
Integrated Solutions
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.
Professional
Distribution of high technology equipment to professional broadcast, film, recording and
sound reinforcement industries.
(b) Segment information
22002211
RReevveennuuee
Total segment revenue
-
Inter-segment revenue
-
Revenue from external customers
RReessuulltt
-
-
-
-
-
-
-
-
-
Segment Contribution
Unallocated / corporate result
EBITDA
Depreciation and amortisation
EBIT
Interest and finance costs
Profit before income tax
Income tax (expense)/benefit
Profit for the year
AAsssseettss
-
-
-
Segment Assets
Unallocated/corporate assets
Total assets
LLiiaabbiilliittiieess
-
-
-
Segment liabilities
Unallocated/corporate liabilities
Total liabilities
PPrrooffeessssiioonnaall EElliimmiinnaattiioonnss
$$''000000
$$''000000
EEccoonnoommiicc
EEnnttiittyy
$$''000000
RReettaaiill
$$''000000
11,282
-
11,282
IInntteeggrraatteedd
SSoolluuttiioonnss
$$''000000
36,293
-
36,293
32,565
-
32,565
721
3,553
4,049
6,350
16,877
11,596
1,874
4,445
4,105
-
-
-
-
-
-
-
80,140
-
80,140
8,323
(308)
8,015
(1,569)
6,446
(1,147)
5,299
(209)
5,090
34,823
4,987
39,810
10,424
13,974
24,398
138
138
39
OOtthheerr
-
Acquisition of non current segment assets
21
62
55
RReevveennuuee
Total segment revenue
-
Inter-segment revenue
-
Revenue from external customers
RReessuulltt
-
-
-
-
-
-
-
-
-
Segment Contribution
Unallocated / corporate result
EBITDA
Depreciation and amortisation
EBIT
Interest and finance costs
Profit before income tax
Income tax benefit
Profit for the year
AAsssseettss
-
-
-
Segment Assets
Unallocated/corporate assets
Total assets
LLiiaabbiilliittiieess
-
-
-
Segment liabilities
Unallocated/corporate liabilities
Total liabilities
PPrrooffeessssiioonnaall
EElliimmiinnaattiioonnss
$$''000000
$$''000000
EEccoonnoommiicc
EEnnttiittyy
$$''000000
RReettaaiill
$$''000000
9,041
-
9,041
IInntteeggrraatteedd
SSoolluuttiioonnss
$$''000000
23,942
-
23,942
25,724
-
25,724
(186)
1,212
731
5,778
17,140
17,422
1,753
4,160
9,565
OOtthheerr
-
Acquisition of non current segment assets
201
604
537
-
-
-
-
-
-
-
58,707
-
58,707
1,757
1,537
3,294
(1,358)
1,936
(1,467)
469
315
784
40,340
2,806
43,146
15,478
15,991
31,469
1,342
1,342
40
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NNOOTTEE 2244:: SSEEGGMMEENNTT RREEPPOORRTTIINNGG ((ccoonnttiinnuueedd))
(c) Segment information on geographical region
Geographical Location
-
-
Australia
New Zealand
SSeeggmmeenntt RReevveennuueess ffrroomm
SSaalleess ttoo EExxtteerrnnaall
CCuussttoommeerrss
22002200
$$''000000
22002211
$$''000000
CCaarrrryyiinngg AAmmoouunntt ooff
SSeeggmmeenntt NNoonn CCuurrrreenntt
AAsssseettss
22002200
$$''000000
22002211
$$''000000
75,341
4,799
80,140
55,516
3,191
58,707
7,107
8,102
93
90
7,200
8,192
AAccqquuiissiittiioonn ooff NNoonn--
CCuurrrreenntt AAsssseettss
22002211
$$''000000
127
11
138
22002200
$$''000000
1,247
95
1,342
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
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.
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.
Major Customers
During the year ended 30 June 2021, $4,993,416 or 6% (2020: $3,752,021 or 6%) 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
NNOOTTEE 2255:: CCAASSHH FFLLOOWW IINNFFOORRMMAATTIIOONN
((ii)).. CCaasshh aanndd ccaasshh eeqquuiivvaalleennttss
Cash and cash equivalents included in the statement of cash flows comprise the following
amounts:
Cash on hand
At call deposits with financial institutions
TToottaall ccaasshh aanndd ccaasshh eeqquuiivvaalleennttss
((iiii)) RReeccoonncciilliiaattiioonn ooff nneett ccaasshh pprroovviiddeedd bbyy ooppeerraattiinngg aaccttiivviittiieess ttoo pprrooffiitt aafftteerr iinnccoommee ttaaxx
PPrrooffiitt ffoorr tthhee yyeeaarr
Adjustments for:
Depreciation and amortisation
Foreign exchange (gain)/loss
Net (profit) on sale of plant and equipment
Non-cash share based payments
Changes in operating assets and liabilities:
Decrease/(increase) in trade and other receivables
(Increase) in prepayments
Decrease/(increase) in inventories
(Decrease) in trade and other payables
(Decrease)/increase contract liabilities
Increase in provisions
Increase in income taxes payable
(Increase) in deferred taxes
NNeett ccaasshh pprroovviiddeedd bbyy ooppeerraattiinngg aaccttiivviittiieess
EEccoonnoommiicc EEnnttiittyy
22002211
$$''000000
22002200
$$''000000
3
1,785
11,,778888
3
986
998899
5,090
784
1,569
(166)
(1)
-
313
(690)
4,011
(3,073)
(1,903)
169
703
(495)
55,,552277
1,358
(369)
-
1
(1,978)
(842)
(803)
(538)
3,505
525
-
(316)
11,,332277
((iiiiii)) NNoonn CCaasshh FFiinnaanncciinngg aanndd IInnvveessttiinngg AAccttiivviittiieess
There were no non-cash financing or investing activities during the financial year.
((AA)) CCaasshh aanndd CCaasshh EEqquuiivvaalleennttss
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.
41
42
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NNOOTTEE 2266:: FFIINNAANNCCIIAALL RRIISSKK MMAANNAAGGEEMMEENNTT
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:
-
-
- market risk (including foreign currency risk and interest rate risk)
credit risk
liquidity 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.
AA)).. CCrreeddiitt RRiisskk
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.
Expected credit loss allowance
The expected credit loss allowance relates to specific customers, identified as being in trading difficulties, or where specific
debts are in dispute. The expected credit loss 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
NNOOTTEE 2266:: FFIINNAANNCCIIAALL RRIISSKK MMAANNAAGGEEMMEENNTT ((ccoonnttiinnuueedd))
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
EEccoonnoommiicc EEnnttiittyy
22002211
$$''000000
7,792
3,643
455
314
12,204
216
12,420
22002200
$$''000000
6,489
3,181
750
980
11,400
90
11,490
The economic entity does not have other receivables which are past due (2020: Nil).
The consolidated entity has increased its monitoring of debt recovery as there is an increased probability of customers delaying
payment or being unable to pay, due to the Coronavirus (COVID-19) pandemic. As a result, the amount of expected credit
losses has increased since the previous corresponding period.
BB)).. LLiiqquuiiddiittyy RRiisskk
Liquidity risk is the risk that the economic entity will not be able to meet its financial obligations as they fall due. The economic
entity's policy for managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity (cash reserves and
finance facilities) to meet its liabilities when due, under both normal and stressed conditions. The objective of the policy is to
maintain a balance between continuity of funding and flexibility through the use of finance facilities.
The economic entity monitors liquidity risk by maintaining adequate cash reserves and financing facilities and by continuously
monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities. The table below
summarises the maturity profile of the economic entity's financial liabilities based on contractual undiscounted payments:
22002211
FFiinnaanncciiaall lliiaabbiilliittiieess dduuee ffoorr ppaayymmeenntt
Trade payable
Other accounts payable
Financial liabilities
Lease liability
Total expected outflows
FFiinnaanncciiaall aasssseettss -- ccaasshh fflloowwss rreeaalliissaabbllee
Trade receivables
Total anticipated inflows
WWiitthhiinn
11 YYeeaarr
$$''000000
4,238
3,085
2,676
1,719
11,718
12,420
12,420
CCoonnttrraaccttuuaall CCaasshh FFlloowwss
11 ttoo 55
YYeeaarrss
$$''000000
OOvveerr 55
YYeeaarrss
$$''000000
-
-
-
8,798
8,798
-
-
-
1,034
1,034
TToottaall
$$''000000
4,238
3,085
2,676
11,551
21,550
-
-
-
-
12,420
12,420
Net inflow / (outflow) on financial instruments
702
(8,798)
(1,034)
(9,130)
43
44
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NNOOTTEE 2266:: FFIINNAANNCCIIAALL RRIISSKK MMAANNAAGGEEMMEENNTT ((ccoonnttiinnuueedd))
22002200
FFiinnaanncciiaall lliiaabbiilliittiieess dduuee ffoorr ppaayymmeenntt
Trade payable
Other accounts payable
Financial liabilities
Lease liability
Total expected outflows
FFiinnaanncciiaall aasssseettss -- ccaasshh fflloowwss rreeaalliissaabbllee
Trade receivables
Total anticipated inflows
WWiitthhiinn
11 YYeeaarr
$$''000000
7,984
2,453
4,770
1,573
16,780
11,490
11,490
CCoonnttrraaccttuuaall CCaasshh FFlloowwss
11 ttoo 55
YYeeaarrss
$$''000000
OOvveerr 55
YYeeaarrss
$$''000000
-
-
-
8,639
8,639
-
-
-
2,911
2,911
TToottaall
$$''000000
7,984
2,453
4,770
13,123
28,330
-
-
-
-
11,490
11,490
Net outflow on financial instruments
(5,290)
(8,639)
(2,911)
(16,840)
The carrying amounts of cash and cash equivalents, trade and other receivables and trade and other payables are assumed to
approximate their fair values due to their short term nature.
The fair value of debtor finance and lease liabilities is estimated by discounting the remaining contractual maturities at the
current market interest rate that is available for similar financial liabilities.
CC)).. MMaarrkkeett RRiisskk
Market risk is the risk that changes in market prices will affect the economic entity's income or the value of its holdings of
financial instruments. The activities of the economic entity expose it primarily to the financial risks of changes in foreign
currency rates and interest rates. The objective of market risk management is to manage and control market risk exposures
within acceptable parameters, whilst optimising the returns.
Foreign Currency Risk
The following table demonstrates the impact on the profit and equity of the economic entity, if the Australian Dollar
weakened/strengthened by 10%, which management consider to be reasonably possible at balance date against the respective
foreign currencies, with all other variables remaining constant:
Impact on profit
Impact on equity
WWeeaakkeenniinngg ooff 1100%%
22002211
$$''000000
(414)
22002200
$$''000000
(516)
SSttrreennggtthheenniinngg ooff 1100%%
22002211
$$''000000
338
22002200
$$''000000
422
(414)
(516)
338
422
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NNOOTTEE 2266:: FFIINNAANNCCIIAALL RRIISSKK MMAANNAAGGEEMMEENNTT ((ccoonnttiinnuueedd))
Interest Rate Risk
The economic entity has a debtor financing facility. The use of the facility exposes the economic entity to cash flow interest
rate risk.
As at the reporting date, the economic entity had the following fixed and variable rate borrowings:
Note
WWeeiigghhtteedd aavveerraaggee iinntteerreesstt rraattee
BBaallaannccee
22002211
%%
22002200
%%
22002211
$$''000000
22002200
$$''000000
Debtor finance
Business transaction facility
Financial liabilities
13
13
6.64%
6.21%
6.57%
6.49%
6.29%
6.48%
2,234
442
2,676
4,538
232
4,770
The following table demonstrates the impact on the profit and equity of the economic entity if the average interest rate on the
borrowing facility had either increased or decreased by 1%, which management consider to be reasonably possible over the
whole year ending 30 June 2020, with all other variables remaining constant:
Impact on profit
Impact on equity
IInnccrreeaassee ooff 11%% ooff aavveerraaggee
iinntteerreesstt rraattee
22002200
$$''000000
(48)
22002211
$$''000000
(27)
DDeeccrreeaassee ooff 11%% ooff aavveerraaggee
iinntteerreesstt rraattee
22002200
$$''000000
48
22002211
$$''000000
27
(27)
(48)
27
48
DD)) NNeett FFaaiirr VVaalluueess
The net fair values of assets and liabilities approximate their carrying values. No financial assets or liabilities are readily traded
on organised markets.
EE)) CCaappiittaall MMaannaaggeemmeenntt
The Board's aim is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain
future development of the business. The Board seeks to maintain a balance between the higher returns that might be possible
with higher levels of borrowings and the advantages and security afforded by a sound capital position.
Total capital is defined as shareholders' equity. The Board monitors the return on capital, which is defined as net operating
income divided by total shareholders' equity. The Board also establishes a dividend payout policy which is targeted as being
greater than 50% of earnings, subject to a number of factors, including the capital expenditure requirements and the
company's financial and taxation position. Dividends paid for the year ended 30 June 2021 were $1,379,000 (2020: nil).
There were no changes to the economic entity's approach to capital management during the financial year.
45
46
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NNOOTTEE 2299:: AAUUDDIITTOORRSS'' RREEMMUUNNEERRAATTIIOONN
The disclosures include amounts received or due and receivable by BDO Audit Pty Ltd and their respective related entities.
AAuuddiitt sseerrvviicceess
BDO Audit Pty Ltd
Audit and review of financial reports under the Corporations Act 2001.
Total remuneration for audit services
NNoonn--aauuddiitt sseerrvviicceess
BDO Audit Pty Ltd
Tax compliance services, including review of company income tax returns
Other practices - BDO Auckland
Tax compliance services, including review of company income tax returns
Total remuneration for non-audit services
22002211
$$
22002200
$$
127,065
127,065
122,000
122,000
31,345
20,000
5,935
37,280
5,812
25,812
It is the economic entity's policy to employ BDO on assignments additional to their statutory audit duties where BDO's
expertise and experience with the economic entity are important. These assignments are principally tax compliance
assignments.
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NNOOTTEE 2277:: EEAARRNNIINNGGSS PPEERR SSHHAARREE
AA)) BBaassiicc eeaarrnniinnggss ppeerr sshhaarree ((cceennttss))
Weighted average number of ordinary shares (number)
Earnings used to calculate basic earnings per share ($)
EEccoonnoommiicc EEnnttiittyy
22002211
$$''000000
6.7
22002200
$$''000000
1.4
76,509,790
55,738,848
5,090,000
784,000
Basic earnings per share is calculated by dividing the profit attributable to equity holders of the company, excluding any costs
of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the year,
adjusted for bonus elements in ordinary shares issued during the year.
BB)) DDiilluutteedd eeaarrnniinnggss ppeerr sshhaarree ((cceennttss))
Weighted average number of ordinary shares (number)
Earnings used to calculate diluted earnings per share ($)
6.6
76,621,662
5,090,000
1.4
55,738,848
784,000
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the
after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the weighted
average number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary shares.
NNOOTTEE 2288:: DDIIVVIIDDEENNDD
EEccoonnoommiicc EEnnttiittyy
Final dividend for the year ended 30 June 2020 of 0.3 cents per share, fully franked, paid on 19 October
2020 (2019: Nil)
Paid in Cash
Interim dividend for the year ended 30 June 2021 of 1.5 cents per share, fully franked, paid on 31 March
2021 (2020: Nil)
Paid in Cash
TToottaall DDiivviiddeennddss
Franking credits available for subsequent financial years at the 30% corporate tax rate after allowing for
tax payable in respect of current year's profit and tax rules
DDiivviiddeennddss nnoott rreeccooggnniisseedd aatt yyeeaarr eenndd
Since year end, the Directors have declared a fully franked final dividend of 1.6 cents per share. The total
amount of the dividend expected to be paid on the 5th October 2021 out of retained profits, but not
recognised as a liability at year end;
22002211
$$''000000
229
229
1,149
1,149
11,,337799
22002200
$$''000000
-
-
-
-
--
66,,225544
66,,113399
11,,222266
222299
47
48
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NNOOTTEE 3300:: PPAARREENNTT EENNTTIITTYY IINNFFOORRMMAATTIIOONN
Information relating to Ambertech Limited (parent entity):
Current Assets
Total Assets
Current Liabilities
Total Liabilities
Share capital
Share issue cost reserve
Retained earnings
Loss of the parent entity
Total comprehensive income of the parent entity
CCoonnttiinnggeenntt LLiiaabbiilliittiieess
The parent entity had no contingent liabilities as at 30 June 2021 (2020: Nil).
PPaarreenntt EEnnttiittyy
22002211
$$''000000
22002200
$$''000000
16,501
15,933
21,084
20,490
2,165
1,587
2,165
1,587
15,948
15,915
-
7
2,971
2,981
(9)
(9)
(19)
(19)
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 Australian 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 2021 and of its performance
for the year ended on that date.
2. The company has included in the notes to the financial statements an explicit and unreserved statement of
3.
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.
4. 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.
This declaration is made in accordance with a resolution of the Board of Directors pursuant to section 295(5)(a) of the
Corporations Act 2001, and is signed for and on behalf of the directors by:
CCaappiittaall CCoommmmiittmmeennttss
The parent entity had no capital commitments for property, plant and equipment as at 30 June 2021 (2020: Nil)
SSiiggnniiffiiccaanntt AAccccoouunnttiinngg PPoolliicciieess
The accounting policies of the parent entity are consistent with those of the consolidated entity, as disclosed in note 1 and
throughout the notes.
P F Wallace
DDiirreeccttoorr
P A Amos
DDiirreeccttoorr
Dated this 29th day of September 2021
Sydney
49
50
S H A R E H O L D E R S I N F O R M A T I O N
The following information is required by the Australian
Securities Exchange Limited.
DISTRIBUTION OF EQUITY SECURITY BY SIZE OF HOLDING:
Number of
Shareholders
Number of
Ordinary Shares
% of Total
Capital
1
1,001
5,001
10,001
82
to 1,000
217
to 5,000
114
to 10,000
to 100,000 240
62,929
654,494
895,145
8,298,345
100,001 and over
64
69,134,606
0.08
0.83
1.13
10.50
87.46
Total
717
79,045,519
100.00
The number of security investors holding less than a marketable parcel
of 1,163 securities is 84 and they hold 66,355 securities.
EQUITY SECURITY HOLDERS
The twenty largest shareholders as at 15 October 2021 were:
Rank
Twenty largest holders
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Appwam Pty Limited
BT Portfolio Services Limited (Amos Super Fund)
Wavelink Systems Pty Ltd (Employee Super Fund)
Mr Nathan Carlini
Wygrin Pty Ltd (Wygrin Pension Fund)
Mr Edwin Goodwin & Ms Julia Griffith (EFG Investments)
Wavelink Systems Pty Ltd
Horrie Pty Ltd (Horrie Superannuation)
Wallace Capital Pty Ltd (Super Fund)
BNP Paribas Nominees Pty Ltd (IB AU Noms Retail Client DRP)
SI Coprporation Pty Ltd (Santo Carlini DT)
Martini Super Pty Ltd (Martini Super Fund)
Mr Michael Carman & Mrs Alisha Carman (M Carman Investment Fund)
Breuer Investments Pty Ltd (Mark Breuer Family)
Esprezia Pty Ltd (Ryan Family)
Mr Ian Davies
Garry and Anita Beauchamp (Empire Park S/F)
Mr Ralph McCleery
Mr Joseph Paul Grech & Ms Deborah Lee Grech (J&D Grech Super Fund)
CJ Cornwell & Son Pty Ltd (CJ Cornwell Exec SF A/C)
Number of shares
% of total
capital
27,638,357
35.02
4,935,055
4,380,350
3,485,850
3,086,735
2,883,556
2,784,625
2,656,795
2,418,206
1,689,769
1,640,182
500,000
467,616
455,000
400,000
400,000
372,728
357,599
333,261
330,728
6.24
5.54
4.41
3.91
3.65
3.52
3.36
3.06
2.14
2.08
0.63
0.59
0.58
0.51
0.51
0.47
0.45
0.42
0.42
Source: Boardroom Pty Limited
61,261,412
77.50
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
Number of shares
% of total
capital
27,638,357
7,214,975
4,935,055
35.02
9.13
6.24
ON-MARKET BUY BACK
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 5 October 2020.
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 2021 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.
C O R P O R A T E D I R E C T O R Y
Financiers
Octet
Level 3, 10-14 Waterloo St
Surry Hills NSW 2010
T: +61 2 9356 6300
Auditors
BDO Audit Pty Ltd
Level 11, 1 Margaret Street
Sydney NSW 2000
T: + 61 2 9251 4100
ASX Listing
AMO
Registered Office
Unit 1, 2 Daydream Street
Warriewood NSW 2102
T: +61 2 9998 7600
Melbourne
Ground Floor
737 Burwood Road
Hawthorn VIC 3122
T: +61 2 9998 7600
Auckland
Unit 3, 77 Porana Road
Glenfield, Auckland 0672
New Zealand
T: + 64 9 443 0753
Directors
Peter F Wallace
Chairman
Peter A Amos
Managing Director
Tom R Amos
David R Swift
Santo Carlini
Company Secretary
Robert J Glasson
Share Registry
Boardroom Pty Limited
GPO Box 3993
Sydney NSW 2001
Or
Level 12, 255 George Street
Sydney NSW 2000
T: +61 2 9290 9600 or
T: 1300 737 760
Web
www.ambertech.com.au
Corporate Governance Statement
www.ambertech.com.au/investors/corporate-governance
N O T E S
AMBERTECH LIMITED
PO Box 955, Mona Vale
NSW 1660
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