1
MISSION STATEMENT
Ambertech Limited is an
acknowledged leader in the
identification, supply and
distribution of advanced
technologies for the Professional
and Consumer audio/visual
markets within the Oceania region.
Our purpose is to add significant
operational value by developing
and strengthening customer
relationships, expanding horizons
of opportunity and delivering strong
and continuous financial growth
to stake holders through our proven
ability to integrate, implement
and commercialise existing
and emerging technologies.
2
CONTENTS
Chair Review .................................................................................... 4
Managing Director Review .......................................................... 5
Chief Operating Officer Review ................................................. 7
Our Business ................................................................................. 10
Our Brands ..................................................................................... 11
Integrated Solutions Segment ................................................... 12
Professional Segment ................................................................... 14
Retail Segment .............................................................................. 18
Financial Report ........................................................................... 20
Shareholders Information .......................................................... 72
Corporate Directory .................................................................... 75
3
CHAIR REVIEW
On behalf of the Board and management of Ambertech I would like to present you with our 2022
Annual Report. It is rewarding to once again reflect on a successful year in which the company
strengthened its balance sheet, reported a strong profit result, and sustained returns to shareholders.
Whilst the COVID-19 pandemic
restrictions on our everyday lives
are subsiding, businesses are still
confronted with having to navigate
a variety of challenges. Disrupted
trading patterns and supply
chain efficiencies; illness-related
absenteeism; workplace flexibility
and adjusting to new ways of
working; resetting of business
relationships and contracting
terms; and removal of “covid crisis”
government support included.
Our ability to create shareholder value in this context is greatly aided by clarity of purpose and
maintaining a value creation focus balancing short and longer-term objectives. The Ambertech team
maintains a very clear strategy of providing each of our markets with the supply and support of
marketing leading brands and solutions. Our short and long-term growth objectives are aligned,
and we are well positioned to deliver on those expectations.
From an investor relations perspective we continue to improve our engagement with the market.
We look forward to welcoming as many of you as possible to our AGM in November where
we will provide a further update on trading for the current year.
In closing, I would like to acknowledge the work and commitment of our Board. We are fortunate to
have a strong, experienced team who have leaned into the challenge of returning Ambertech
to financial strength and growth. To our shareholders, thank you for your continuing support.
On behalf of the Board of Ambertech Limited
Peter Wallace
Chairman
4
MANAGING DIRECTOR REVIEW
Reflecting on the last twelve months, it has been energising and fulfilling to see the business
delivering on strategy and following a formula for sustained long-term growth. Much has been
made of the challenges for businesses in the current business climate, and whilst these challenges
do exist, there are also significant opportunities for Ambertech to grow in this environment through
strategic acquisition and the development of our brands and solutions in each of our chosen markets.
We continue to pursue market opportunities, and this has been rewarding, with the successful
integration of the Noise Toys and Connected Media Australia teams into Ambertech this year. This
continued our strategy of identifying strong brands represented by quality people that filled a need
for our business. The capability to embrace these new teams into our business speaks volumes
for the strong culture that we have developed.
In October 2021 we raised funds from the market. The primary intent of this raising was to fund
executed acquisitions, to reduce debt, and to position the business for further acquisition opportunities.
Consolidation at manufacturer, supplier and competitor level will continue to present opportunities
for us to further add to our portfolio. We continue to have significant capacity to grow across
several markets without significant brand conflict, which remains extremely important as a leading
value add distributor in Australia and New Zealand across audio-visual, musical instrument and
communications solutions. Our goal is to continue to grow without compromising the quality of our
brand representation or the support for our customers.
During the year we achieved solid growth in revenue across our dealer network. In project supply,
however, we faced delays in manufacturing, freight delays, and customer inability to commence
contracted projects. As these impediments gradually ease, revenue from these projects will be
realised in the coming periods.
We have enduring enthusiasm surrounding our Australian Monitor range, with the launch of new
product this year creating interest both domestically and internationally. Significant opportunity
remains for this brand internationally, and we have invested in resources to expand our global
reach through the development of a committed dealer network.
5
M A N AG I N G D I R E C TO R R E V I E W ( C O N T )
I want to thank all staff for their commitment and hard work over the last year. Our financial
performance would not be possible without your hard work and desire, an approach evident across
the entire business. Thanks also to our loyal dealers for your continued support.
Peter Amos
Managing Director
KEY TAKEAWAYS
Successful acquisition and integration of Noise Toys Imports
business into our MI team.
Successful acquisition and integration of Connected Media
Australia into our Integrated Solutions team.
Successful launch of new range of Australian Monitor product
to global and domestic markets.
Ongoing recognition by industry of our reputation in key markets
through trade magazine Connected Home+Business. We have
now won these awards for three consecutive years.
6
CHIEF OPERATING OFFICER REVIEW
The 2022 financial year results reflected a consolidation period for the Ambertech business, despite
the many challenges for the markets that Ambertech supplies. With two acquisitions during the year
the finance and operations teams of the business were once again called upon to analyse and
complete these transactions and assist the new staff with their integration into the team.
FINANCIAL RESULTS
Sales revenue and contribution margin from the professional segment to the result for the year were
diminished by the inability to deliver and fulfil firm orders across both the Media Systems and DLES
customer base of business.
Despite this, we reported a profit before tax in line with the prior financial year. As the business has
utilised all previous tax losses and is now full tax paying, this translated to a reduce profit after tax.
The Board determined to retain similar levels of return to shareholders this year, however similar
returns moving forward would therefore require further growth in the business from achieving
strategic goals.
7
C H I E F O P E R AT I N G O F F I C E R R E V I E W ( C O N T )
FINANCE COSTS
The last two years have seen a significant reduction of the use of debt facilities. A combination of funds from
operating activities and a capital raising have positioned the business well to manage risk and take advantage
of market opportunities for growth. We retain significant headroom on debt facilities that can be called upon
to fund acquisitions.
INVENTORY GPROI
Management of inventory levels is a key metric for any distribution business. Management pays close attention
to the Gross Profit Return on Investment (GPROI) in inventory. This financial year there have been significant
challenges with the international supply chain due to COVID-19 related factory closures or inefficiencies, issues
with availability and timeliness of sea freight, and electronics component shortages worldwide.
8
C H I E F O P E R AT I N G O F F I C E R R E V I E W ( C O N T )
We have worked very closely with our fantastic international supply partners over that time to ensure
minimal disruption for our dealer network. Navigating these issues has required tireless effort from our brand
management and logistics teams.
I would like to thank them for the way in which they have overcome these challenges over the last two years,
including the regular changes to the content and timing of supply orders.
At times, our commitment to our dealers has meant holding more than optimal stock in our distribution facility.
Nonetheless, it is pleasing that we have been able to achieve further gains in this key metric during the year.
SUCCESSFUL ACQUISITIONS
During the year we completed two acquisitions, Noise Toys Imports and Connected Media Australia, for a
total consideration of $1.84m. The new brands acquired in these acquisitions contributed $3.0m in revenue this
financial year and that contribution is expected to grow in subsequent years. These new brands have met or
exceeded expectations.
The most pleasing aspect of each of the acquisitions has been the quality of people we have been able
to add to the Amber team across sales and support functions. As we continue to evaluate other opportunities
for growth, the intellectual property of the people continues to be an important consideration.
Robert Glasson
Chief Operating Officer
9
OUR BUSINESS
Our business segments operate across both the Australian and New Zealand markets.
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.
CommeRCial 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 market
retail chains and independent specialist outlets to supply home entertainment solutions
for consumers in the residential market.
10
OUR BRANDS
AC Infinity
Accent Visual
Advanced Network
Telemetry
Aja
Ambertec Cables
Arista
ASL
Ateme
Australian Monitor
Autoscript
AVer
Avid
Aviwest
Barix
BATS Wireless
BirdDog
Black Mountain
Blue Lucy
Bluesound Professional
Breedlove
Canare
Chiayo Electronics
Cioks
CP Cases
DALI
David Horn
Communications
Dell EMC
Denon Pro
MC2
Sadowsky Guitars
MP Antennas
Silvus Technologies
Digital Projection
Naked Cable
Solid State Logic
DNH
Neutrik
Sonance
DPA Microphones
Newline Interactive
Soundsphere
Spectra Logic
Strymon
SurgeX
Teenage Engineering
Telestream
Troll Systems
Van Damme
Videssence
Vinten
Vipranet
Dynaudio Professional
Embrionix
Newtek
Nexidia
Emotion Systems
NTi Audio
Embrace
Evoko
EVS
Framus Guitars
GB Labs
Nura
One For All
One Systems
Optoma
Pakedge
Grandview Screens
Panasonic
Peterson
Grass Valley
Haivision
HDAnywhere
Hotone
ICE Cables
iPort
Philips Projection
Walla Walla Guitars
Plura
Primacoustic
Pro Control
Warwick Basses
Well AV
Williams AV
Radial Engineering
WolfVision
James Loudspeaker
Rean
Woody Technologies
Jays
Renkus Heinz
WyreStorm
JTS Microphones
Ritcher
KASTA
Liberty AV
Litepanels
LP Morgan
Rockboard
Rock-n-Roller
Roland
RTI
Xilica Audio Design
XTA Electronics
Yamaha Revolabs
11
INTEGRATED SOLUTIONS SEGMENT
Despite ongoing supply chain disruptions and lockdowns in major markets, the Integrated Solutions segment
delivered a strong result for the financial year.
Our manufacturer-partners continued to contend with shortages of raw materials and electronic components
– leading to patchy availability of some products. Availability out the factory doors improved towards the
end of the financial year, however shipping the products into Australia and New Zealand continued to
present some challenges in both price and availability.
Our brand portfolio was relatively stable
during the year. We entered a new category
(room booking displays) by way of a
partnership with Evoko (Sweden). We filled
a gap (automation/control systems) in our
commercial and residential portfolios with
RTI, which came to us through the acquisition
of Connected Media Australia (CMA) in
November 2021. The CMA acquisition
also saw us add Bluesound Professional
to the portfolio – a network-based music
distribution solution for businesses.
Evoko
Evoko
Bluesound Professional
RTI
RTI
For the third year in
succession, readers of
leading trade magazine
Connected Home+Business
rated Amber Technology as
Most Popular Residential AV
Distributor, Most Popular
Commercial AV Distributor
and Most Popular New
Zealand Distributor – a
trifecta of trifectas of which
the team can be proud.
Bluesound Professional
12
SPECIALIST RESIDENTIAL AV CUSTOMERS
Specialist Residential retail business was restrained during the early part of the financial year, as many stores
were impacted by COVID lockdowns. This was more than offset by continuing strength in the residential Custom
Installation business – investment in in-home installed audio-visual systems continued to be buoyant.
As lockdowns lifted and travel restrictions eased, we were able to roll out a national Road Show for residential
custom installer customers – demonstrating new and updated products released by our manufacturer-partners
during the COVID period. This, as well as our regular program of customer engagement, saw us end the year
ahead of target and with solid momentum into the 2023 financial year.
RTI at Resi Road Show
Perth Resi Road Show
Dali equi Demo
COMMERCIAL AV CUSTOMERS
During the early part of the financial year, customers’ purchases continued to be strongly influenced by the
need to use AV solutions to generate business momentum despite lockdowns and travel restrictions. Products
used in teleconference installations performed strongly, while products for large public spaces were slower.
As we entered the second half of the financial year, sales to COVID-depressed applications started to rebuild.
We quickly recovered from a slight deficit in the first half to end the year strongly – well ahead of our targets.
Bared Footwear Project
Stage Queensland Presentation
LOOKING AHEAD
We have worked hard to build and maintain a stable platform during the difficult COVID years. We have
retained important staff and brand relationships, while investing in renewed systems and tools that allow us
to better serve our customers. We look forward to continuing to benefit from these investments and relationships
as we enter what we hope will be a year in which the lingering impacts of the COVID-19 pandemic (supply
chain, lockdowns and restrictions) wane.
13
PROFESSIONAL SEGMENT
MEDIA MARKET
Our Media Systems team managed to maintain a healthy
order pipeline throughout this financial year, however, the
ongoing supply chain issues led to extended product lead
times preventing a significant percentage of these orders
turning into revenue. For the first half of the year business
practices continued to be impacted by restrictions put in
place due to COVID, however once these restrictions started
to ease, we were able to take advantage of a considerable
number of opportunities opening up due to clients being able
to progress project work that had been delayed.
While traditional products sales were being impacted Amber
was able to move into offering systems using the ‘Platform as
a Service (PaaS)’ model where clients are provided with a
managed system deployed in the cloud. This year also saw
a number of Amber’s key suppliers move away from offering
perpetual software licensing, preferring instead to focus on the
subscription license model. While this transition has an initial
impact on revenue, long-term it provides the benefit of continued
value that is recognised across the year, or multiple years.
Media Systems has also secured representation for a number
of new tier one brands that will be introduced over the
coming months.
Media Systems team at METexpo 22
Significant deals for 2022 included:
• Avid system upgrades for Seven, Nine (NBN),
Ten and Fox Sports
• Blue Lucy PaaS for APL
• Large EVS installations for Fox Sports,
Image NZ, and TEN
• Telestream solutions for Fox Sports, Māori TV
and Damsmart
• Significant multi-supplier support agreements
with TEN, Seven, SBS, Sky News and Fox Sports
Moving forward the Media Systems team will continue
to grow the ongoing subscription and PaaS revenue
as well as looking to build on recent successes in New
Zealand. Overall, the gradual return to normal business
practices, the introduction of new product lines and the
easing of supply chain issues bode well for a strong year
for Media Systems.
14
Media Systems team at METexpo 22
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
DEFENCE, LAW ENFORCEMENT
AND SECURITY (DLES)
This year we were delighted to be awarded Silvus
Technologies’ “Defence Distributor of the Year
2021” award for our efforts in that year. This
acknowledges what has been an extended period
of building brand recognition for Silvus in Australia
and New Zealand in extremely difficult markets
and bodes very well for future projects.
Our expansion in the Police and Military spheres in
WA has produced clear results, with firm prospects
for development and expansion on a number of
fronts coming as a direct result of our efforts there.
Indo Pacific Expo 22
The DLES stand at MILCIS 22
“Bread and Butter” customers made up the
bulk of revenue for us this financial year, with
government projects continuing to move very
slowly. The COVID backlog, staff shortages in
government project offices, and federal election
all added to the drag. However, we stand on
a group of world-leading products, the existing
project potentials have not gone away, and
the emergency services sector shows very
exciting potential as they move to address the
communications issues highlighted after the
bushfires of 2020.
The DLES stand at MILCIS 22
15
PROFESSIONAL PRODUCTS
The Professional Products Group continued
to produce sales growth this financial year.
Investment in and streamlining of our internal
processes has been of great benefit to the
business allowing us to provide our customers
with a very responsive delivery of orders.
P R O F E SS I O N A L S E G M E N T ( C O N T )
The Live entertainment sector reopened in
March 2022. Events that we would normally
expect to see in warmer months, such as
Festivals and Concerts, were staged as the
extremely high demand from patrons for
these types of events was accumulated
over the previous two years of lockdowns.
Musical Theatre, in which DPA Microphones
are the preferred choice of microphone, either
reopened shows that were hibernated or new
productions were launched.
DPA Headset Mic
Neutrik Fiberfox
NTi XL3
Solid State Logic L200
16
MUSICAL INSTRUMENTS (MI)
Our MI team capitalised on the integration of the
acquired Noise Toys Imports business at the end of
the first quarter. The Strymon brand has performed
well above our initial expectations with further
capacity for growth. Demand for our MI brands
continued to be both challenging and rewarding
due to quality manufacturers reaching their
production limits.
We will see in the coming financial year the full
launch of the Breedlove brand of acoustic guitars.
Presently we have just launched the entry level
ECO collection with two additional ranges to
come in the 2023 financial year. Breedlove’s
philosophy of only using sustainable tone woods
has resonated incredibly well with the market.
We were able to capitalise on demand for the
cable and connector business due to our ability
to provide on demand supply. The Neutrik
brand benefited from our inventory planning as
competitive brands were not so fortunate.
Our range of premium brands continued to
contribute to the success of our results with new and
innovative products the market readily accepted.
Our New Zealand business was successful despite
the stop/start to business due to the pandemic.
Emphasis was placed on supporting the reseller
market with newly introduced brands such as
Teenage Engineering portable synthesisers and
Hotone effects pedals.
Strymon Pedals
DPA Kickdrum Microphone
Breedlove Guitars
17
RETAIL SEGMENT
Our results for the financial year in Australia and New Zealand
were a major achievement for the major retail segment.
Our strength is based on remaining efficient, and adjusting
and responding to market forces, including global logistics
timeframes and costs. We continue to address these with
support from our suppliers. Locally, we have felt the impact
of costs to deliver goods to the market, primarily driven by
increased transport costs. However, this has provided us with
the opportunity to establish broader lines of communication at
an operational level with customers to mitigate these impacts.
One of the key areas of focus has been proactively securing
category opportunities. Establishing sales programs with
our retail partners, mutually understanding and navigating
through ongoing logistics challenges, and working meticulously
on merchandising plans, has provided us with a successful
financial year.
In striving for these results, we have also explored further
involvement and investment in the digital space. Despite
COVID19 based restrictions lifting, allowing for retail stores
to open, the importance of showcasing experiential assets
and value-added content in retailers’ digital platform
remains a priority.
One For All products
18
Reflecting on category performance for the year,
our AV accessories portfolio continues to grow.
Further development of the One For All stand
category has provided an opportunity to address
the shift to lifestyle designer products. Our Philips
Projectors remain heavily sought after, driven
by current nomadic lifestyle trends. The portable
projector segment continues to evolve with further
technology improvements, namely through battery
lifespan, brightness and resolution, and superior
processing speeds.
In New Zealand, extended lockdowns have
delayed our opportunity to update our
merchandising displays at store level. However,
we have seen the benefits of supporting our
channel partners with their omni-channel strategy.
Communication has played an important role in the
success of navigating through logistic challenges.
The team have handled this superbly with their
clients, adjusting sales programs as necessary.
Philips Projectors POS
Philips Projectors
19
AMBERTECH LIMITED
AND CONTROLLED ENTITIES
ACN 079 080 158
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 JUNE 2022
20
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 2022
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.
21
2
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 124 employees as at 30 June 2022 (2021: 126 employees).
22
3
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
DIRECTORS’ REPORT
RREEVVIIEEWW AANNDD RREESSUULLTTSS OOFF OOPPEERRAATTIIOONNSS
The consolidated profit of the economic entity after providing for income tax for the financial year was $3,681,000 (2021:
$5,090,000). The reduction in profit from the prior year is essentially a result of the business being a taxpayer for the full year,
whereas there were accumulated tax losses utilised in the prior year. Total revenues for the financial year decreased by 3.9% to
$76,997,000 (2021: $80,145,000) because of an inability to recognise some revenues due to a combination of manufacturing
and shipping delays. Further information on the operations, including the success of the two acquisitions during the reporting
period, 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. At 30 June 2022 the economic entity had improved on its working capital ratio, net tangible
asset position and continued to show positive operating cash flow during the financial year.
The economic entity's working capital, being current assets less current liabilities, has increased by $6,908,000 to $20,765,000
as at 30 June 2022 (2021: $13,857,000). The net assets of the economic entity have also increased by $6,863,000 to
$22,274,000 as at 30 June 2022 (2021: $15,412,000).
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 1.5 cents per share.
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 2022-23 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.
23
4
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
DIRECTORS’ REPORT
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.
For the 2022 financial year, staff remuneration increases were on average consistent with increases in the cost of living, accept
where roles and responsibilities changed. Non-executive directors received their first increase in remuneration 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. Until recently the financial
performance of the company had not justified an increase to the remuneration of non-executive directors. For the 2022
financial year non-executive directors received an increase in remuneration for the first time 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 22% of total salary for the
Managing Director and 17% 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.
24
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
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
DIRECTORS’ REPORT
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.
For the 2022 financial year, staff remuneration increases were on average consistent with increases in the cost of living, accept
where roles and responsibilities changed. Non-executive directors received their first increase in remuneration 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. Until recently the financial
performance of the company had not justified an increase to the remuneration of non-executive directors. For the 2022
financial year non-executive directors received an increase in remuneration for the first time 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 22% of total salary for the
Managing Director and 17% 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.
AMBERTECH LIMITED AND CONTROLLED ENTITIES
OOtthheerr EExxeeccuuttiivveess
ACN 079 080 158
Remuneration of other key executives is set by the Managing Director and Chief Operating Officer, with reference to guidelines
DIRECTORS’ REPORT
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
RREEMMUUNNEERRAATTIIOONN RREEPPOORRTT ((ccoonnttiinnuueedd))
funds and options.
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
Approximately 5% of the aggregate remuneration of the senior sales executives comprises an incentive element which is
against the KPIs is assessed annually by the Remuneration and Nomination Committee and recommendations for payments
related to the KPIs of those parts of the company's operations which are relevant to the executive's responsibilities. The senior
determined following the end of the financial year.
sales executives may also receive a sales commission component, which will vary with the sales performance of those parts of
AMBERTECH LIMITED AND CONTROLLED ENTITIES
the sales business for which they are responsible.
ACN 079 080 158
The table below sets out the economic entity's key shareholder indicators for the past 5 financial years:
DIRECTORS’ REPORT
KPIs are set annually by the Remuneration and Nomination Committee, with a degree of consultation with executives to ensure
22001188
their commitment. The measures are tailored to the areas of each executive's involvement and over which they have control.
-
RREEMMUUNNEERRAATTIIOONN RREEPPOORRTT ((ccoonnttiinnuueedd))
5
They are based on company performance targets, and at the same time, these KPIs are aligned to reflect the common
$0.16
corporate goals such as growth in earnings and shareholders' wealth, and achievement of working capital targets. Performance
(143)
against the KPIs is assessed annually by the Remuneration and Nomination Committee and recommendations for payments
determined following the end of the financial year.
Dividends paid (cents per share)
Closing share price at 30 June ($)
Net profit/(loss) after tax ($’000)
22001199
-
$0.10
(1,332)
22002211
1.8
$0.225
5,090
22002200
-
$0.055
784
22002222
3.1
$0.27
3,681
DDeettaaiillss ooff RReemmuunneerraattiioonn
The table below sets out the economic entity's key shareholder indicators for the past 5 financial years:
Details of the remuneration of the directors and the key management personnel (as defined in AASB 124 Related Party
Disclosures) of the economic entity are set out in the following tables.
The key management personnel of the economic entity includes the following:
Dividends paid (cents per share)
Closing share price at 30 June ($)
NNaammee
Net profit/(loss) after tax ($’000)
P Wallace
P Amos
T Amos
D Swift
S Carlini
PPoossiittiioonn
Non-Executive Chairman
Group Managing Director
Non-Executive Director
DDeettaaiillss ooff RReemmuunneerraattiioonn
Non-Executive Director
Details of the remuneration of the directors and the key management personnel (as defined in AASB 124 Related Party
Non-Executive Director
Disclosures) of the economic entity are set out in the following tables.
NNaammee
R Glasson
R Neale
R Caston
22001199
-
$0.10
(1,332)
22002200
-
$0.055
PPoossiittiioonn
784
Group COO, Company Secretary
General Manager, Integrated Solutions
General Manager, Media Systems
22002211
1.8
$0.225
5,090
22002222
3.1
$0.27
3,681
22001188
-
$0.16
(143)
Key management personnel are those directly accountable to the Managing Director and the Board and responsible for the
The key management personnel of the economic entity includes the following:
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.
NNaammee
R Glasson
R Neale
R Caston
PPoossiittiioonn
Group COO, Company Secretary
General Manager, Integrated Solutions
General Manager, Media Systems
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
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.
25
6
6
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
DIRECTORS’ REPORT
RREEMMUUNNEERRAATTIIOONN RREEPPOORRTT ((ccoonnttiinnuueedd))
EElleemmeennttss ooff RReemmuunneerraattiioonn
22002222
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
$$
374,275
68,182
40,909
40,909
17,509
541,784
CCaasshh
BBoonnuuss
$$
-
-
-
-
-
-
SSuuppeerraannnnuuaattiioonn
$$
27,500
6,818
4,091
4,091
27,491
69,991
LLSSLL aaccccrruueedd//
((ttaakkeenn))
$$
16,111
-
-
-
-
16,111
OOppttiioonnss
$$
7,068
-
-
-
-
7,068
TToottaall
$$
424,954
75,000
45,000
45,000
45,000
634,954
%% PPeerrffoorrmmaannccee
RReellaatteedd
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
%% RReellaattiinngg
ttoo OOppttiioonnss
1.7%
0.0%
0.0%
0.0%
0.0%
1.1%
195,712
225,481
271,921
693,114
-
10,000
20,000
30,000
20,000
27,382
26,525
73,907
960
690
-
1,650
4,241
4,415
4,241
12,897
220,913
267,968
322,687
811,568
0.0%
3.7%
6.2%
3.7%
1.9%
1.6%
1.3%
1.6%
(1)
(2)
(3)
On 13 August 2021, a cash bonus of $10,000 was paid to Mr Caston relating to performance against KPI's. The bonus is 50% of the total available to Mr Caston
under his KPI scheme.
On 13 August 2021, a cash bonus of $20,000 was paid to Mr Neale relating to performance against KPI's. The bonus is 50% of the total available to Mr Neale
under his KPI scheme.
Cash bonuses in relation to performance against KPI’s the year ended 30 June 2022 for Mr Amos, Mr Glasson, Mr Caston and Mr Neale had not yet been
determined at year end and therefore have yet to be paid. The total amount for each is a maximum of $95,000 for Mr Amos, $50,000 for Mr Glasson, $20,000
for Mr Caston, and $40,000 for Mr Neale.
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%
(4)
(5)
(6)
(7)
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.
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.
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
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.
26
7
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 $417,500 (2021: $405,000).
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
-
75,000
75,000
62,500
-
-
-
62,500
During the financial year, 337,500 options vested with key management personnel (2021: 212,500). During the year 612,500
options were exercised (2021: 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.
27
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
22002222
22002211
2,654,400
5,197,555
7,289,975
3,161,735
29,720,872
2,441,878
4,935,055
7,214,975
3,086,735
28,065,287
VVoottiinngg aanndd CCoommmmeennttss mmaaddee aatt tthhee CCoommppaannyy’’ss 22002211 AAnnnnuuaall GGeenneerraall MMeeeettiinngg ((‘‘AAGGMM’’))
The Company received 93% of “for” votes in relation to its remuneration report for the year ended 30 June 2021. No issues
were raised with Directors concerning the Report.
This concludes the Remuneration Report which has been audited.
DDIIVVIIDDEENNDDSS
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 was 20 September 2021, with a payment date of 5 October 2021. The Company’s Dividend
Reinvestment Plan was active for this dividend, with a discount rate of 3% to the volume weighted average price of shares
traded from 21 September 2021 to 24 September 2021. The DRP Price per share was $0.2841.
On 25 February 2022 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 4 March 2022, with a payment date of 31 March 2022.
On 18 August 2022 the Board of Ambertech resolved to pay a final dividend of 1.5 cents per share, fully franked. The record
date for the dividend is 12 September 2022, with a payment date of 30 September 2022.
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
2
-
2
-
-
HHeelldd
2
-
2
-
-
AAtttteennddeedd
2
-
-
2
-
HHeelldd
2
-
-
2
-
28
9
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
DIRECTORS’ REPORT
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.
RREEMMUUNNEERRAATTIIOONN RREEPPOORRTT ((ccoonnttiinnuueedd))
IInntteerreessttss ooff DDiirreeccttoorrss
At the date of this report the following interests were held by directors:
22002222
Director
It is the economic entity's policy to employ BDO Audit Pty Ltd and their respective related entities (BDO) for assignments
Ordinary Shares
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.
2,654,400
5,197,555
7,289,975
3,161,735
29,720,872
2,441,878
4,935,055
7,214,975
3,086,735
28,065,287
P Wallace
P Amos
T Amos
D Swift
S Carlini
22002211
•
VVoottiinngg aanndd CCoommmmeennttss mmaaddee aatt tthhee CCoommppaannyy’’ss 22002211 AAnnnnuuaall GGeenneerraall MMeeeettiinngg ((‘‘AAGGMM’’))
The Company received 93% of “for” votes in relation to its remuneration report for the year ended 30 June 2021. No issues
were raised with Directors concerning the Report.
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.
This concludes the Remuneration Report which has been audited.
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.
DDIIVVIIDDEENNDDSS
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.
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 was 20 September 2021, with a payment date of 5 October 2021. The Company’s Dividend
Reinvestment Plan was active for this dividend, with a discount rate of 3% to the volume weighted average price of shares
traded from 21 September 2021 to 24 September 2021. The DRP Price per share was $0.2841.
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.
On 25 February 2022 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 4 March 2022, with a payment date of 31 March 2022.
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.
On 18 August 2022 the Board of Ambertech resolved to pay a final dividend of 1.5 cents per share, fully franked. The record
date for the dividend is 12 September 2022, with a payment date of 30 September 2022.
DDIIRREECCTTOORRSS'' MMEEEETTIINNGGSS
IINNDDEEMMNNIIFFIICCAATTIIOONN OOFF OOFFFFIICCEERRSS
The number of directors' meetings (including meetings of committees of directors) and the number of meetings attended by
The company has indemnified the directors and executives of the company for costs incurred, in their capacity as a
each of the directors of the Company during the financial year are:
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
NNoommiinnaattiioonn aanndd RReemmuunneerraattiioonn
the company against a liability to the extent permitted by the Corporations Act 2001. The contract of insurance prohibits
CCoommmmiitttteeee
disclosure of the nature of liability and the amount of the premium.
AAtttteennddeedd
11
11
11
11
11
HHeelldd
HHeelldd
2
11
RROOUUNNDDIINNGG
-
11
The company is of a kind referred to in Corporations Instrument 2016/191, issued by the Australian Securities and
-
11
Investments Commission, relating to 'rounding-off'. Amounts in this report have been rounded off in accordance with that
2
11
Corporations Instrument to the nearest thousand dollars, or in certain cases, the nearest dollar.
-
11
Signed in accordance with a resolution of directors.
DDiirreeccttoorr
P Wallace
P Amos
T Amos
D Swift
S Carlini
AAtttteennddeedd
2
-
-
2
-
AAtttteennddeedd
2
-
2
-
-
AAuuddiitt aanndd RRiisskk MMaannaaggeemmeenntt
CCoommmmiitttteeee MMeeeettiinnggss
HHeelldd
2
-
2
-
-
BBooaarrdd MMeeeettiinnggss
Director:
P F Wallace
P A Amos
Dated this 25th day of August 2022
Sydney
29
10
9
Tel: +61 2 9251 4100
Fax: +61 2 9240 9821
Level 11, 1 Margaret Street
Sydney NSW 2000
Australia
DECLARATION OF INDEPENDENCE BY MARTIN COYLE TO THE DIRECTORS OF AMBERTECH LIMITED
As lead auditor of Ambertech Limited for the year ended 30 June 2022, I declare that, to the best of
my knowledge and belief, there have been:
1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
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 period.
Martin Coyle
Director
BDO Audit Pty Ltd
Sydney, 25 August 2022
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.
30
Tel: +61 2 9251 4100
Fax: +61 2 9240 9821
Level 11, 1 Margaret Street
Sydney NSW 2000
Australia
INDEPENDENT AUDITOR'S REPORT
To the members of Ambertech Limited
Report on the Audit of the Financial Report
Opinion
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 2022, 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)
(ii)
Giving a true and fair view of the Group’s financial position as at 30 June 2022 and of its
financial performance for the year ended on that date; and
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.
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.
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.
31
Revenue Recognition
Key audit matter
How the matter was addressed in our audit
As disclosed in Note 3, the Group recognised revenue
To determine whether revenue was appropriately
of $76,997,000 during the financial year ended 30 June
accounted for and disclosed within the financial
2022 (2021: $80,145,000).
statements, we performed, amongst others, the
Revenue recognition was considered to be a key audit
matter due to the significance of revenue to the Group
as a key performance indicator, and that two
businesses were acquired both of which contributed a
material amount of revenue to the Group during the
financial year ended 30 June 2022.
following audit procedures:
•
•
•
•
•
Critically evaluated the revenue recognition
policies for all material revenue sources to
ensure compliance with AASB 15: Revenue
from Contracts with Customers;
Tested the operating effectiveness of
internal controls surrounding the existence
of revenues;
Performed substantive testing on the
revenue, deferred revenue and rebate
balances to ensure they had been recognised
appropriately and consistent with the goods
and services supplied per the terms of the
respective agreements;
Performed 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; and
Performed substantive analytical procedures
over gross margins by segment and by
product group in comparison to the prior
period, budget and our expectations.
Valuation of inventory
Key audit matter
How the matter was addressed in our audit
As disclosed in Note 7, the Group held inventory with a
Our audit procedures for addressing this key audit
carrying value of $17,360,000 as at 30 June 2022 which
matter included, but were not limited to, the
represented approximately 39% of the Group’s total
following:
assets.
•
Observed the cyclical inventory count
Inventory valuation was considered a key audit matter
procedures performed by management and
due to the significant value of these assets in the
assessed, by inspection, whether there was
Consolidated Statement of Financial Position and the
any evidence of damaged or obsolete
key estimates and judgements applied by management
inventory;
in assessing the net realisable value (‘NRV’) of
32
Key audit matter
How the matter was addressed in our audit
inventory due to the nature of the industry in which
•
Analysed and tested the inventory acquired
the Group operates in.
as part of the newly acquired businesses to
ensure these balances were being recognised
at the lower of cost and net realisable value;
•
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;
•
Assessed the assumptions applied by
management in determining the provision for
obsolescence in comparison to recent sales
experience and the ageing of inventory; and
•
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 2022 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
33
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
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 (http://www.auasb.gov.au/Home.aspx) 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 for the year ended 30 June
2022.
In our opinion, the Remuneration Report of Ambertech Limited, for the year ended 30 June 2022,
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, 25 August 2022
34
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 2022
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
NNoottee
22002222
$$''000000
22002211
$$''000000
76,997
80,145
(49,995)
(54,405)
2277,,000022
2255,,774400
281
178
(15,197)
(1,775)
(647)
(716)
(235)
(1,260)
(925)
(1,263)
-
55,,226655
(1,584)
(13,538)
(1,664)
(350)
(588)
(123)
(1,569)
(1,147)
(1,540)
(100)
55,,229999
(209)
3
4
3
4
4
4
5
PPrrooffiitt aafftteerr iinnccoommee ttaaxx ffoorr tthhee yyeeaarr
33,,668811
55,,009900
OOtthheerr ccoommpprreehheennssiivvee iinnccoommee
Exchange differences on translation of foreign operations
TToottaall ccoommpprreehheennssiivvee iinnccoommee ffoorr tthhee yyeeaarr
(64)
33,,661177
(1)
55,,008899
EEaarrnniinnggss ppeerr sshhaarree
Basic earnings per share (cents)
Diluted earnings per share (cents)
27
27
4.2
4.2
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.
35
16
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
FOR THE YEAR ENDED 30 JUNE 2022
NNoottee
22002222
$$''000000
22002211
$$''000000
CCUURRRREENNTT AASSSSEETTSS
Cash and cash equivalents
Trade and other receivables
Inventories
TTOOTTAALL CCUURRRREENNTT AASSSSEETTSS
NNOONN--CCUURRRREENNTT AASSSSEETTSS
Plant and equipment
Right-of-use assets
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
Retained earnings/(Accumulated losses)
TTOOTTAALL EEQQUUIITTYY
25
6
7
9
10
11
5
12
14
13
15
16
5
13
16
15
5
17
18
2,225
15,576
17,360
3355,,116611
1,788
14,804
12,900
2299,,449922
341
4,726
1,532
2,759
99,,335588
4444,,551199
442
5,640
1,118
3,118
1100,,331188
3399,,881100
6,817
1,255
2,169
1,247
2,570
338
7,323
2,676
1,428
1,199
2,306
703
1144,,339966
1155,,663355
346
281
7,098
124
77,,884499
2222,,224455
174
235
8,345
9
88,,776633
2244,,339988
2222,,227744
1155,,441122
21,781
(37)
530
2222,,227744
15,947
(10)
(525)
1155,,441122
The above Consolidated Statement of Financial Position is to be read in conjunction with the attached notes.
36
17
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2022
SShhaarree
CCaappiittaall
FFoorreeiiggnn
CCuurrrreennccyy
TTrraannssllaattiioonn
RReesseerrvvee
SShhaarree BBaasseedd
PPaayymmeennttss
RReesseerrvvee
RReettaaiinneedd
eeaarrnniinnggss//
((AAccccuummuullaatteedd
lloosssseess))
TToottaall
EEqquuiittyy
$$''000000
$$''000000
$$''000000
$$''000000
$$''000000
BBaallaannccee aass aatt 3300 JJuunnee 22002200
1155,,991155
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
Dividends declared and paid (note 28)
-
-
--
25
7
--
((99))
-
(1)
((11))
-
-
--
BBaallaannccee aass aatt 3300 JJuunnee 22002211
1155,,994477
((1100))
BBaallaannccee aass aatt 11 JJuullyy 22002211
1155,,994477
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
Shares issued on exercised options
Costs of share based payments
5,078
160
-
Dividends declared, paid and reinvested as part
of the Dividend Reinvestment Plan (note 28)
596
((1100))
-
(64)
((6644))
-
-
-
--
BBaallaannccee aass aatt 3300 JJuunnee 22002222
2211,,778811
((7744))
77
--
-
--
-
(7)
--
--
--
-
--
--
-
-
37
--
3377
((44,,223366))
1111,,667777
5,090
5,090
-
(1)
55,,009900
55,,008899
-
-
25
-
(1,379)
(1,379)
((552255))
1155,,441122
((552255))
1155,,441122
3,681
3,681
-
(64)
33,,668811
33,,661177
-
-
-
5,078
160
37
(2,626)
(2,030)
553300
2222,,227744
The above Consolidated Statement of Changes in Equity is be read in conjunction with the attached notes.
37
18
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2022
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
Income 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 businesses, net of cash acquired
NNeett ccaasshh uusseedd iinn iinnvveessttiinngg aaccttiivviittiieess
CCAASSHH FFLLOOWWSS FFRROOMM FFIINNAANNCCIINNGG AACCTTIIVVIITTIIEESS
Proceeds from borrowings
Repayment of borrowings
Repayment of leases
Proceeds from share issue, net of transaction costs
Dividends paid to shareholders
NNeett ccaasshh pprroovviiddeedd bbyy//((uusseedd iinn)) ffiinnaanncciinngg aaccttiivviittiieess
Net increase 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
NNoottee
22002222
$$''000000
22002211
$$''000000
83,824
87,350
770
1,526
(74,731)
(76,159)
2
(924)
(5,503)
(1,588)
5
(1,147)
(6,048)
-
25
1,850
5,527
(160)
(49)
(1,824)
(253)
(224)
-
(2,033)
(477)
1
(1,412)
(1,199)
5,238
332
(2,426)
(802)
25
(2,030)
(1,379)
598
415
1,788
22
(4,250)
800
989
(1)
CCaasshh aanndd ccaasshh eeqquuiivvaalleennttss aatt eenndd ooff ppeerriioodd
25
2,225
1,788
The above Consolidated Statement of Cash Flows is to be read in conjunction with the attached notes.
38
19
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 25 August 2022 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 of $3,681,000 (2021: $5,090,000) and net operating cash inflows of $1,850,000 (2021: $5,527,000).
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;
39
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 with
limits of up to $9,000,000 in invoice discounting and $2,000,000 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
40
21
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NNOOTTEE 33:: RREEVVEENNUUEE
NNOOTTEE 55:: IINNCCOOMMEE TTAAXX ((ccoonnttiinnuueedd))
CC)) AApppplliiccaabbllee ttaaxx rraattee
The applicable tax rate is the national tax rate in Australia of 30%.
EEccoonnoommiicc EEnnttiittyy
22002222
$$''000000
72,784
4,211
2
76,997
22002211
EEccoonnoommiicc EEnnttiittyy
$$''000000
75,666
4,474
5
80,145
22002222
$$''000000
Revenue
- Sale of goods
- Rendering of services
- Interest received
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
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.
773
359
(1,418)
2,503
29
8
333
67
Sale of goods
76
Revenue from the sale of goods is recognised at a point in time when control transfers to the customer. In most cases this
29
coincides with the transfer of legal title, or the passing of possession to the customer. In arrangements whereby the
2,759
consolidated entity is required to meet contractually agreed upon specifications, control over the goods generally occurs when
the customer has confirmed acceptance.
22002211
$$''000000
714
378
(1,677)
2,857
31
64
611
13
86
41
3,118
EE)) AAnnaallyyssiiss ooff ddeeffeerrrreedd ttaaxx lliiaabbiilliittiieess
Unrealised foreign currency gain
Plant and equipment
Other
75
Rendering of services
47
Revenue from the rendering of services is recognised at the point in time in which the service is provided to the customer.
2
Maintenance and support contracts extend for between one and five years. 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
124
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.
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.
Interest revenue
Interest revenue is recognised as it accrues using the effective interest method.
-
9
9
OOtthheerr iinnccoommee
‘Net Foreign exchange gains
Gain on asset sale
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.
281
-
281
165
13
178
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
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.
49,995
(966)
54,405
1,154
13,996
1,201
15,197
12,501
1,037
13,538
* Salaries and wages FY21 are net of $1,101,750 and FY22 are net of $769,782 in Government grants which were provided as a
result of the COVID-19 pandemic.
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.
41
24
22
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NNOOTTEE 44:: EEXXPPEENNSSEESS ((ccoonnttiinnuueedd))
NNOOTTEE 55:: IINNCCOOMMEE TTAAXX ((ccoonnttiinnuueedd))
CC)) AApppplliiccaabbllee ttaaxx rraattee
The applicable tax rate is the national tax rate in Australia of 30%.
CC)) DDeepprreecciiaattiioonn
Plant and equipment
Furniture and fittings
DD)) AAnnaallyyssiiss ooff ddeeffeerrrreedd ttaaxx aasssseettss
Leasehold improvements
Employee benefits
Leased property plant and equipment
Plant and equipment
Buildings right-of-use assets
Right-of-use assets
Plant and equipment right-of-use assets
Lease Liability
Accrued expenses
Provision for impairment of receivables
DD)) AAmmoorrttiissaattiioonn
Provision for obsolescence
Website costs
Provision for warranty
Customer/Supplier Relationships
Inventory
Research & Development
Other
EE)) BBaadd ddeebbttss aanndd eexxppeecctteedd ccrreeddiitt lloosssseess
EE)) AAnnaallyyssiiss ooff ddeeffeerrrreedd ttaaxx lliiaabbiilliittiieess
Unrealised foreign currency gain
Plant and equipment
Other
FF)) RReennttaall eexxppeennssee oonn ooppeerraattiinngg lleeaasseess::
Minimum lease payments
EEccoonnoommiicc EEnnttiittyy
22002222
$$''000000
125
1
133
7
838
76
1,180
25
55
-
80
31
-
22002211
$$''000000
EEccoonnoommiicc EEnnttiittyy
107
115
151
16
867
39
1,295
22002222
$$''000000
773
359
(1,418)
2,503
29
8
333
67
76
29
2,759
19
30
225
274
53
2
75
47
2
124
22002211
$$''000000
714
378
(1,677)
2,857
31
64
611
13
86
41
3,118
-
9
9
GG)) FFiinnaannccee ccoossttss
Interest and finance charges paid/payable on borrowings
Interest and finance charges paid/payable on lease liabilities
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.
511
636
1,147
352
572
924
NNOOTTEE 55:: IINNCCOOMMEE TTAAXX
AA)) MMaajjoorr ccoommppoonneennttss ooff iinnccoommee ttaaxx
Current year
Deferred tax
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.
Income tax expense
1,115
469
703
(494)
1,584
209
BB)) RReeccoonncciilliiaattiioonn bbeettwweeeenn iinnccoommee ttaaxx aanndd pprriimmaa ffaacciiee ttaaxx oonn aaccccoouunnttiinngg
pprrooffiitt//((lloossss))
Profit/(loss) before income tax
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.
5,265
5,299
Tax at 30% (2021:30%)
Tax effect of non deductible expenses/non assessable income
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.
1,580
1,590
Entertainment
Other items
Trading stock adjustments
•
•
•
Recognition of movements in deferred tax
Previous tax return adjustments
Unused tax losses not recognised as deferred tax assets
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)
1,584
209
Income tax expense/(benefit)
12
3
(1,381)
9
9
20
-
(53)
111
(83)
42
23
24
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
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%.
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
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
Plant and equipment
Other
EE)) AAnnaallyyssiiss ooff ddeeffeerrrreedd ttaaxx lliiaabbiilliittiieess
Unrealised foreign currency gain
Plant and equipment
Other
EEccoonnoommiicc EEnnttiittyy
EEccoonnoommiicc EEnnttiittyy
22002211
22002222
$$''000000
$$''000000
22002211
$$''000000
22002222
$$''000000
773
359
(1,418)
2,503
29
8
333
67
76
29
2,759
714
773
378
359
(1,677)
(1,418)
2,857
2,503
31
29
64
8
611
333
13
67
86
76
41
29
3,118
2,759
75
47
2
124
75
47
2
124
-
9
9
714
378
(1,677)
2,857
31
64
611
13
86
41
3,118
-
9
9
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.
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 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 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 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.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and
liabilities and when the deferred tax balances relate to the same taxation authority.
Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either
to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Current 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.
43
24
24
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NNOOTTEE 55:: IINNCCOOMMEE TTAAXX ((ccoonnttiinnuueedd))
CC)) AApppplliiccaabbllee ttaaxx rraattee
NNOOTTEE 55:: IINNCCOOMMEE TTAAXX ((ccoonnttiinnuueedd))
The applicable tax rate is the national tax rate in Australia of 30%.
Current and deferred tax balances attributable to amounts recognised directly in equity are also recognised directly in
equity.
EEccoonnoommiicc EEnnttiittyy
22002222
$$''000000
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
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.
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
773
account for their own current and deferred tax amounts. These tax amounts are measured as if each entity in the tax
359
consolidated group continues to be a ‘stand-alone taxpayer’ in its own right.
(1,418)
2,503
29
8
333
67
76
29
2,759
EEccoonnoommiicc EEnnttiittyy
22002222
$$''000000
13,696
(27)
13,669
1,472
435
15,576
EE)) AAnnaallyyssiiss ooff ddeeffeerrrreedd ttaaxx lliiaabbiilliittiieess
Unrealised foreign currency gain
Plant and equipment
Other
CCuurrrreenntt
Trade receivables
Allowance for expected credit losses
22002211
$$''000000
75
12,420
47
(216)
2
12,204
124
1,080
1,520
14,804
Other receivables
Prepayments
NNOOTTEE 66:: TTRRAADDEE AANNDD OOTTHHEERR RREECCEEIIVVAABBLLEESS
A) Current trade receivables are non-interest bearing, generally received between 30 and 60 day terms.
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.
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.
22002211
$$''000000
714
378
(1,677)
2,857
31
64
611
13
86
41
3,118
-
9
9
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.
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.
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 ongoing Coronavirus (COVID-19) pandemic. Despite
this, there were several debts recovered during the year that were previously considered doubtful. As a result, the
amount of expected credit losses has decreased since the previous corresponding period.
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.
C) Movement in the allowance for expected credit losses is as follows:
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.
Current trade receivables
Opening balance
(Reversal)/charge for the year
Amounts written off
Closing balance
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.
D)
The economic entity's exposure to credit risk and impairment losses related to trade and other receivables is
disclosed at note 26.
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.
216
(158)
(31)
27
90
171
(45)
216
44
24
25
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NNOOTTEE 77:: IINNVVEENNTTOORRIIEESS
NNOOTTEE 55:: IINNCCOOMMEE TTAAXX ((ccoonnttiinnuueedd))
CC)) AApppplliiccaabbllee ttaaxx rraattee
The applicable tax rate is the national tax rate in Australia of 30%.
CCuurrrreenntt
Finished goods
Stock in transit
Provision for obsolescence
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
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
EE)) AAnnaallyyssiiss ooff ddeeffeerrrreedd ttaaxx lliiaabbiilliittiieess
Unrealised foreign currency gain
Plant and equipment
Other
EEccoonnoommiicc EEnnttiittyy
22002222
$$''000000
16,523
1,952
18,475
(1,115)
17,360
2,080
380
(1,345)
1,115
22002211
$$''000000
EEccoonnoommiicc EEnnttiittyy
13,571
22002222
1,409
$$''000000
14,980
(2,080)
773
12,900
359
(1,418)
2,503
29
8
333
67
76
29
2,759
22002211
$$''000000
714
378
(1,677)
2,857
31
64
611
13
86
41
3,118
926
1,636
(482)
2,080
75
47
2
124
-
9
9
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.
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
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.
CCoouunnttrryy ooff IInnccoorrppoorraattiioonn
PPeerrcceennttaaggee OOwwnneedd
22002211
22002222
PPaarreenntt EEnnttiittyy
•
Ambertech Limited
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.
Australia
Australia
100%
100%
SSuubbssiiddiiaarriieess ooff AAmmbbeerrtteecchh LLiimmiitteedd
•
Amber Technology Limited
SSuubbssiiddiiaarriieess ooff AAmmbbeerr TTeecchhnnoollooggyy LLiimmiitteedd
•
•
•
Alphan Pty Limited
Connected Media Australia
Amber Technology (NZ) Limited
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.
Australia
Australia
New Zealand
100%
100%
100%
100%
0%
100%
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.
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.
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.
All inter-company balances and transactions between entities in the economic entity, including any unrealised profits or losses,
have been eliminated on consolidation.
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.
45
26
24
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NNOOTTEE 99:: PPLLAANNTT AANNDD EEQQUUIIPPMMEENNTT
NNoonn--CCuurrrreenntt
NNOOTTEE 55:: IINNCCOOMMEE TTAAXX ((ccoonnttiinnuueedd))
CC)) AApppplliiccaabbllee ttaaxx rraattee
The applicable tax rate is the national tax rate in Australia of 30%.
AA)) CCaarrrryyiinngg aammoouunnttss
22002222
$$''000000
DD)) AAnnaallyyssiiss ooff ddeeffeerrrreedd ttaaxx aasssseettss
Employee benefits
Plant and equipment
Right-of-use assets
Lease Liability
1,660
Accrued expenses
941
Provision for impairment of receivables
1,547
Provision for obsolescence
112
Provision for warranty
4,260
Inventory
Other
EEccoonnoommiicc EEnnttiittyy
Plant and equipment
Furniture and fittings
Leasehold improvements
Leased plant and equipment
Total plant and equipment
BB)) RReeccoonncciilliiaattiioonn ooff ccaarrrryyiinngg aammoouunnttss
CCoosstt
AAccccuummuullaatteedd
ddeepprreecciiaattiioonn
22002222
$$''000000
22002211
$$''000000
(1,434)
(936)
(1,437)
(112)
(3,919)
(1,345)
(935)
(1,305)
(117)
(3,702)
22002211
$$''000000
1,566
941
1,512
124
4,143
EEccoonnoommiicc EEnnttiittyy
22002222
$$''000000
NNeett ccaarrrryyiinngg aammoouunntt
22002222
$$''000000
226
5
110
-
341
22002211
$$''000000
221
6
208
7
442
773
359
(1,418)
2,503
29
8
333
67
76
29
2,759
22002211
$$''000000
714
378
(1,677)
2,857
31
64
611
13
86
41
3,118
-
22002222
EE)) AAnnaallyyssiiss ooff ddeeffeerrrreedd ttaaxx lliiaabbiilliittiieess
Unrealised foreign currency gain
Plant and equipment
Other
PPllaanntt aanndd
eeqquuiippmmeenntt
FFuurrnniittuurree aanndd
ffiittttiinnggss
LLeeaasseehhoolldd
iimmpprroovveemmeennttss
$$''000000
Balance at the beginning of the year
6
Additions
-
Disposals
-
FF)) IInnccoommee TTaaxx
Depreciation and amortisation expense
(1)
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
5
temporary differences and to unused tax losses.
$$''000000
208
35
-
(133)
$$''000000
221
132
(2)
(125)
Carrying amount at the end of the year
110
226
341
-
9
9
LLeeaasseedd ppllaanntt
aanndd
eeqquuiippmmeenntt
$$''000000
7
-
-
(7)
TToottaall
75
47
$$''000000
2
442
124
167
(2)
(266)
22002211
PPllaanntt aanndd
eeqquuiippmmeenntt
FFuurrnniittuurree
aanndd ffiittttiinnggss
LLeeaasseehhoolldd
iimmpprroovveemmeennttss
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
$$''000000
$$''000000
transaction affects neither accounting nor taxable profit or loss. Deferred income tax is determined using tax rates (and
117
226
laws) that have been enacted or substantially enacted by the reporting date and are expected to apply when the related
4
120
deferred income tax asset is realised or the deferred income tax liability is settled.
-
(18)
(115)
(107)
6
221
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.
Balance at the beginning of the year
Additions
Disposals
Depreciation and amortisation expense
Carrying amount at the end of the year
$$''000000
717
138
(24)
(389)
442
$$''000000
345
14
-
(151)
208
LLeeaasseedd ppllaanntt
aanndd
eeqquuiippmmeenntt
$$''000000
29
-
(6)
(16)
7
TToottaall
CC)) RReeccooggnniittiioonn aanndd mmeeaassuurreemmeenntt
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.
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.
DD)) DDeepprreecciiaattiioonn ooff pprrooppeerrttyy,, ppllaanntt aanndd eeqquuiippmmeenntt
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.
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.
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.
46
24
27
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NNOOTTEE 99:: PPLLAANNTT AANNDD EEQQUUIIPPMMEENNTT ((ccoonnttiinnuueedd))
NNOOTTEE 55:: IINNCCOOMMEE TTAAXX ((ccoonnttiinnuueedd))
CC)) AApppplliiccaabbllee ttaaxx rraattee
The applicable tax rate is the national tax rate in Australia of 30%.
DD)).. DDeepprreecciiaattiioonn ooff pprrooppeerrttyy,, ppllaanntt aanndd eeqquuiippmmeenntt ((ccoonnttiinnuueedd))
EEccoonnoommiicc EEnnttiittyy
22002222
$$''000000
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
3-8 years
3-8 years
Term of the lease
Term of the lease
DD)) AAnnaallyyssiiss ooff ddeeffeerrrreedd ttaaxx aasssseettss
Employee benefits
773
Plant and equipment
Plant and equipment
359
Furniture and fittings
Right-of-use assets
(1,418)
Leasehold improvements
Lease Liability
2,503
Leased plant and equipment
Accrued expenses
29
Provision for impairment of receivables
8
The carrying values of plant and equipment are reviewed for impairment when events or changes in circumstances indicate the
Provision for obsolescence
333
carrying value may not be recoverable. If any such indication exists and where the carrying values exceed the estimated
Provision for warranty
67
recoverable amount, the plant and equipment or cash generating units to which the plant and equipment belong are written
76
Inventory
down to their recoverable amount.
29
Other
2,759
NNOOTTEE 1100:: RRIIGGHHTT--OOFF--UUSSEE AASSSSEETTSS
EE)) AAnnaallyyssiiss ooff ddeeffeerrrreedd ttaaxx lliiaabbiilliittiieess
Unrealised foreign currency gain
NNoonn--CCuurrrreenntt
Plant and equipment
Land and buildings - right-of-use
Other
Less: Accumulated amortisation
EEccoonnoommiicc EEnnttiittyy
22002222
$$''000000
7,152
(2,516)
4,636
22002211
75
$$''000000
47
7,152
2
(1,678)
124
5,474
22002211
$$''000000
714
378
(1,677)
2,857
31
64
611
13
86
41
3,118
-
9
9
Plant and equipment - right-of-use
Less: Accumulated amortisation
FF)) IInnccoommee TTaaxx
The income tax expense or benefit for the period is the tax payable on the current period’s taxable income based on the
applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to
temporary differences and to unused tax losses.
180
(90)
90
239
(73)
166
4,726
5,640
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases
LLaanndd aanndd
of assets and liabilities and their carrying amounts. However, the deferred income tax is not accounted for if it arises from
bbuuiillddiinnggss
initial recognition of an asset or liability in a transaction other than a business combination that at the time of the
$$''000000
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
5,474
deferred income tax asset is realised or the deferred income tax liability is settled.
-
(838)
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that
4,636
future taxable amounts will be available to utilise those temporary differences and losses.
PPllaanntt aanndd
eeqquuiippmmeenntt
$$''000000
5,640
-
(914)
4,726
166
-
(76)
90
$$''000000
TToottaall
Balance at 30 June 2021
Additions
Amortisation
Balance at 30 June 2022
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.
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 2022 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.
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.
47
24
28
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NNOOTTEE 1100:: RRIIGGHHTT--OOFF--UUSSEE AASSSSEETTSS ((ccoonnttiinnuueedd))
NNOOTTEE 55:: IINNCCOOMMEE TTAAXX ((ccoonnttiinnuueedd))
CC)) AApppplliiccaabbllee ttaaxx rraattee
The applicable tax rate is the national tax rate in Australia of 30%.
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.
22002222
$$''000000
EEccoonnoommiicc EEnnttiittyy
DD)) AAnnaallyyssiiss ooff ddeeffeerrrreedd ttaaxx aasssseettss
Employee benefits
Plant and equipment
Right-of-use assets
Lease Liability
Accrued expenses
Provision for impairment of receivables
Provision for obsolescence
Provision for warranty
Inventory
Other
Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the estimated useful life of
the asset, whichever is the shorter. Where the consolidated entity expects to obtain ownership of the leased asset at the end
of the lease term, the depreciation is over its estimated useful life. Right-of use assets are subject to impairment or adjusted for
any remeasurement of lease liabilities.
The consolidated entity has elected not to recognise a right-of-use asset and corresponding lease liability for short-term leases
with terms of 12 months or less and leases of low-value assets. Lease payments on these assets are expensed to profit or loss
as incurred.
KKeeyy EEssttiimmaattee aanndd JJuuddggeemmeenntt:: LLeeaassee tteerrmm
The lease term is a significant component in the measurement of both the right-of-use asset and lease liability. Judgement is
exercised in determining whether there is reasonable certainty that an option to extend the lease or purchase the underlying
asset will be exercised, or an option to terminate the lease will not be exercised, when ascertaining the periods to be included
in the lease term. In determining the lease term, all facts and circumstances that create an economical incentive to exercise an
extension option, or not to exercise a termination option, are considered at the lease commencement date.
EE)) AAnnaallyyssiiss ooff ddeeffeerrrreedd ttaaxx lliiaabbiilliittiieess
Unrealised foreign currency gain
Plant and equipment
Other
773
359
(1,418)
2,503
29
8
333
67
76
29
2,759
75
47
2
124
22002211
$$''000000
714
378
(1,677)
2,857
31
64
611
13
86
41
3,118
-
9
9
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.
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.
48
24
29
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NNOOTTEE 1111:: IINNTTAANNGGIIBBLLEE AASSSSEETTSS
NNOOTTEE 55:: IINNCCOOMMEE TTAAXX ((ccoonnttiinnuueedd))
CC)) AApppplliiccaabbllee ttaaxx rraattee
The applicable tax rate is the national tax rate in Australia of 30%.
EEccoonnoommiicc EEnnttiittyy
Website at cost
Less accumulated amortization
NNoonn--CCuurrrreenntt
NNeett ccaarrrryyiinngg aammoouunnttss aanndd mmoovveemmeennttss dduurriinngg tthhee yyeeaarr
Goodwill at cost
Less impairment
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
Customer/Supplier relationships
Other
Less accumulated amortisation
Brand name
Less impairment
Research & Development
Less accumulated amortisation
EE)) AAnnaallyyssiiss ooff ddeeffeerrrreedd ttaaxx lliiaabbiilliittiieess
Unrealised foreign currency gain
Plant and equipment
Other
22002222
$$''000000
4,136
(2,926)
1,210
94
(86)
8
100
-
100
175
(101)
74
365
(225)
140
1,532
EEccoonnoommiicc EEnnttiittyy
22002211
$$''000000
22002222
$$''000000
22002211
$$''000000
790
94
(60)
3,716
773
(2,926)
359
(1,418)
2,503
29
8
100
333
-
67
76
29
2,759
150
(46)
100
34
104
315
(225)
75
47
2
1,118
124
90
714
378
(1,677)
2,857
31
64
611
13
86
41
3,118
-
9
9
RReeccoonncciilliiaattiioonn ooff wwrriitttteenn ddoowwnn vvaalluueess::
GGooooddwwiillll
FF)) IInnccoommee TTaaxx
BBrraanndd nnaammee
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.
CCuussttoommeerr//SSuupppplliieerr
rreellaattiioonnsshhiippss
WWeebbssiittee
TToottaall
Opening balance at 1 July 2021
Additions
Amortisation expense
Closing balance at 30 June 2022
$$''000000
790
420
-
1,210
$$''000000
34
-
(26)
8
$$''000000
100
-
-
100
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases
of assets and liabilities and their carrying amounts. However, the deferred income tax is not accounted for if it arises from
initial recognition of an asset or liability in a transaction other than a business combination that at the time of the
transaction affects neither accounting nor taxable profit or loss. Deferred income tax is determined using tax rates (and
laws) that have been enacted or substantially enacted by the reporting date and are expected to apply when the related
deferred income tax asset is realised or the deferred income tax liability is settled.
RReeccooggnniittiioonn aanndd mmeeaassuurreemmeenntt
AA)) GGooooddwwiillll
All business combinations are accounted for by applying the acquisition method. Goodwill represents the difference between
the cost of the acquisition and the fair value of the net identifiable assets acquired.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that
future taxable amounts will be available to utilise those temporary differences and losses.
RReesseeaarrcchh
DDeevveelloopp
mmeenntt
$$''000000
90
50
-
140
$$''000000
104
25
(55)
74
$$''000000
1,118
495
(81)
1,532
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.
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.
Where the recoverable amount of the cash generating unit is less than the carrying amount, an impairment loss is recognised.
IImmppaaiirrmmeenntt ooff AAsssseettss
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.
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
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.
49
24
30
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
EEccoonnoommiicc EEnnttiittyy
NNOOTTEE 55:: IINNCCOOMMEE TTAAXX ((ccoonnttiinnuueedd))
CC)) AApppplliiccaabbllee ttaaxx rraattee
The applicable tax rate is the national tax rate in Australia of 30%.
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
22002222
identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-
$$''000000
generating units).
DD)) AAnnaallyyssiiss ooff ddeeffeerrrreedd ttaaxx aasssseettss
Employee benefits
The consolidated entity determined the recoverable amount of assets based on a value-in-use calculation, using cash flow
Plant and equipment
projections based on financial budgets approved by management covering a five-year period. The following assumptions
Right-of-use assets
have been applied by management in the 30 June 2022 calculation of value-in-use based on past performance and
Lease Liability
expectations for the future:
Accrued expenses
Provision for impairment of receivables
Annual sales growth of between 3.5% - 5.0% over the five-year forecast period
Provision for obsolescence
Terminal value factor of 1.98
Provision for warranty
Post-tax discount rate of 14.62%
Inventory
Other
773
359
(1,418)
2,503
29
8
333
67
76
29
Management have performed sensitivity analysis and assessed reasonable changes for key assumptions and have not
2,759
identified any instances that could cause the carrying amount of the consolidated entity’s assets to exceed its recoverable
amount.
•
•
•
EE)) AAnnaallyyssiiss ooff ddeeffeerrrreedd ttaaxx lliiaabbiilliittiieess
Unrealised foreign currency gain
Plant and equipment
Other
If there is evidence of impairment for any of the company’s assets, the loss is measured as the difference between the asset’s
carrying amount and the recoverable amount. The loss is recognised in the statement of profit or loss and other
comprehensive income.
75
47
2
124
22002211
$$''000000
714
378
(1,677)
2,857
31
64
611
13
86
41
3,118
-
9
9
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.
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.
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.
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.
RReesseeaarrcchh && DDeevveellooppmmeenntt
FF))
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.
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.
50
24
31
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NNOOTTEE 1122:: TTRRAADDEE AANNDD OOTTHHEERR PPAAYYAABBLLEESS
NNOOTTEE 55:: IINNCCOOMMEE TTAAXX ((ccoonnttiinnuueedd))
CC)) AApppplliiccaabbllee ttaaxx rraattee
The applicable tax rate is the national tax rate in Australia of 30%.
EEccoonnoommiicc EEnnttiittyy
22002222
$'000
3,994
2,823
22002211
$'000
EEccoonnoommiicc EEnnttiittyy
22002222
$$''000000
4,238
3,085
CCuurrrreenntt
Trade accounts payable
Other accounts payable
6,817
DD)) AAnnaallyyssiiss ooff ddeeffeerrrreedd ttaaxx aasssseettss
Employee benefits
Plant and equipment
Right-of-use assets
Lease Liability
Accrued expenses
Provision for impairment of receivables
AAmmoouunnttss ppaayyaabbllee iinn ffoorreeiiggnn ccuurrrreenncciieess::
Provision for obsolescence
Trade accounts payable:
Provision for warranty
US Dollars
-
British Pounds
-
Inventory
Euro
-
Other
Swiss Francs
-
New Zealand Dollars
-
773
359
These amounts represent liabilities for goods and services provided to the economic entity prior to the end of financial year
(1,418)
which are unpaid. Due to their short- term nature, they are measured at amortised cost and are not discounted. The amounts
2,503
are unsecured and are usually paid within 30 days of recognition.
29
8
333
67
76
29
2,759
7,323
2,227
39
195
34
309
2,804
2,636
118
262
16
692
3,724
22002211
$$''000000
714
378
(1,677)
2,857
31
64
611
13
86
41
3,118
NNOOTTEE 1133:: CCOONNTTRRAACCTT LLIIAABBIILLIITTIIEESS
EE)) AAnnaallyyssiiss ooff ddeeffeerrrreedd ttaaxx lliiaabbiilliittiieess
Unrealised foreign currency gain
Plant and equipment
Other
CCuurrrreenntt
Deferred Revenue
NNoonn CCuurrrreenntt
Deferred Revenue
2,169
75
47
1,428
2
124
-
9
9
346
2,515
174
1,602
927
328
1,255
1,896
780
2,676
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.
NNOOTTEE 1144:: FFIINNAANNCCIIAALL LLIIAABBIILLIITTIIEESS
CCuurrrreenntt
Debtor finance
Business transaction facility
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.
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.
On 10 June 2022, the economic entity entered into an agreement with Octet finance Pty Ltd in relation to extending
the invoice discounting solution for a further 12 months. The facility has approval up to $9,000,000.
AA)) DDeebbttoorr ffiinnaannccee
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.
The economic entity did not breach any covenants during the financial year.
BB)) BBuussiinneessss ttrraannssaaccttiioonn ffaacciilliittyy
Deferred tax liabilities and assets are not recognised for temporary differences between the carrying amount and tax
On 10 June 2022 the economic entity entered into an agreement with Octet Finance Pty Ltd to extend the Business
bases of investments in controlled entities where the parent entity is able to control the timing of the reversal of the
Transaction Facility with a limit of $1,000,000 with no fixed term. As at 30 June 2022, the amount drawn under this facility
temporary differences and it is probable that the differences will not reverse in the foreseeable future.
was $Nil. 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 2022 the amount drawn under this facility was $328,000.
CC)) BBoorrrroowwiinnggss
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.
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
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.
51
32
24
22002222
$$''000000
773
359
(1,418)
2,503
29
22002211
8
$'000
333
67
76
29
2,759
8,345
1,199
EEccoonnoommiicc EEnnttiittyy
22002222
$'000
1,247
7,098
22002211
$$''000000
714
378
(1,677)
2,857
31
64
611
13
86
41
3,118
-
9
9
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NNOOTTEE 1144:: FFIINNAANNCCIIAALL LLIIAABBIILLIITTIIEESS ((ccoonnttiinnuueedd))
NNOOTTEE 55:: IINNCCOOMMEE TTAAXX ((ccoonnttiinnuueedd))
CC)) AApppplliiccaabbllee ttaaxx rraattee
The applicable tax rate is the national tax rate in Australia of 30%.
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.
EEccoonnoommiicc EEnnttiittyy
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
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
CCuurrrreenntt
Lease liabilities
NNoonn CCuurrrreenntt
Lease liabilities
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
75
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
47
be paid under residual value guarantees, exercise price of a purchase option when the exercise of the option is reasonably
2
certain to occur, and any anticipated termination penalties. The variable lease payments that do not depend on an index or a
124
rate are expensed in the period in which they are incurred.
EE)) AAnnaallyyssiiss ooff ddeeffeerrrreedd ttaaxx lliiaabbiilliittiieess
Unrealised foreign currency gain
Plant and equipment
Other
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.
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.
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.
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.
NNOOTTEE 1166:: PPRROOVVIISSIIOONNSS
CCuurrrreenntt
Service warranty
Employee benefits
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.
NNoonn CCuurrrreenntt
Employee benefits
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.
274
2,296
2,570
281
281
335
1,971
2,306
235
235
SSeerrvviiccee wwaarrrraannttyy
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.
AA))
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.
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.
52
24
33
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
22002211
$$''000000
714
378
(1,677)
2,857
31
64
611
13
86
41
3,118
-
9
9
NNOOTTEE 55:: IINNCCOOMMEE TTAAXX ((ccoonnttiinnuueedd))
CC)) AApppplliiccaabbllee ttaaxx rraattee
The applicable tax rate is the national tax rate in Australia of 30%.
NNOOTTEE 1166:: PPRROOVVIISSIIOONNSS ((ccoonnttiinnuueedd))
In determining the level of provision required for warranties, the economic entity has made judgements in respect of the
expected performance of the product, expected customer claims and costs of fulfilling the conditions of warranty. The
provision is based on estimates made from historical warranty costs associated with similar products.
Movements in provisions, other than employee benefits are set out below:
$$''000000
SSeerrvviiccee wwaarrrraannttyy
Opening balance at 1 July 2021
Reduction due to reduced warranty requirements
Reductions resulting from payments
DD)) AAnnaallyyssiiss ooff ddeeffeerrrreedd ttaaxx aasssseettss
773
Employee benefits
359
Plant and equipment
(1,418)
Right-of-use assets
2,503
Lease Liability
29
Accrued expenses
8
Provision for impairment of receivables
333
Provision for obsolescence
67
Provision for warranty
BB)) EEmmppllooyyeeee bbeenneeffiittss
Inventory
76
Short term employee benefits are employee benefits (other than termination benefits and equity compensation benefits)
29
Other
which fall due wholly within 12 months after the end of the period in which employee services are rendered. They comprise
2,759
wages, salaries, commissions, social security obligations, short-term compensation absences and bonuses payable within 12
months and non-mandatory benefits such as car allowances.
Closing balance at 30 June 2022
335
(26)
(35)
274
EEccoonnoommiicc EEnnttiittyy
22002222
$$''000000
The undiscounted amount of short-term employee benefits expected to be paid is recognised as an expense.
EE)) AAnnaallyyssiiss ooff ddeeffeerrrreedd ttaaxx lliiaabbiilliittiieess
Unrealised foreign currency gain
Plant and equipment
Other
Other long-term employee benefits include long-service leave payable 12 months or more after the end of the financial year.
75
47
2
The liability for long service leave is recognised and measured at the present value of the estimated future cash flows to be
124
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::
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.
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:
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.
EEccoonnoommiicc EEnnttiittyy
22002222
$$''000000
22002211
$$''000000
Current annual leave obligation expected to be settled after 12 months
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that
future taxable amounts will be available to utilise those temporary differences and losses.
419
386
Current long service leave obligation expected to be settled after 12 months
435
438
Deferred tax liabilities and assets are not recognised for temporary differences between the carrying amount and tax
bases of investments in controlled entities where the parent entity is able to control the timing of the reversal of the
temporary differences and it is probable that the differences will not reverse in the foreseeable future.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and
liabilities and when the deferred tax balances relate to the same taxation authority.
Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either
to settle on a net basis, or to realise the asset and settle the liability simultaneously.
53
24
34
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NNOOTTEE 1177:: SSHHAARREE CCAAPPIITTAALL
AA)).. OOrrddiinnaarryy SShhaarreess ffuullllyy ppaaiidd ((nnoo ppaarr vvaalluuee))
92,994,819
76,621,662
21,781
15,947
EEccoonnoommiicc EEnnttiittyy
22002222
SShhaarreess
22002211
SShhaarreess
EEccoonnoommiicc EEnnttiittyy
22002222
$$''000000
22002211
$$''000000
MMoovveemmeennttss iinn sshhaarree ccaappiittaall
Balance at the start of the financial year
Placement shares
Share Purchase Plan Shares
Transaction costs
Share issued net of transaction costs
Shares issued on exercise of Options
Shares issued on Dividend Reinvestment Plan
BBaallaannccee aatt tthhee eenndd ooff tthhee ffiinnaanncciiaall yyeeaarr
SShhaarreess
NNoo..
76,621,662
IIssssuuee PPrriiccee
$$
11,856,800
1,692,500
0.4000
0.4000
725,000
2,098,857
92,994,819
0.2200
0.2841
TToottaall
$$’’000000
15,947
4,742
677
(341)
5,078
160
596
21,781
BB)).. VVoottiinngg RRiigghhttss
On a show of hands, one vote for every registered shareholder, and for a poll, one vote for every share held by a registered
shareholder.
CC)).. OOppttiioonnss
At reporting date, there were 1,375,000 ordinary shares reserved for issue under the Employee Share Option Plan (2021:
2,100,000).
DD)).. DDiivviiddeennddss
Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the discretion of
the entity, on or before the end of the year but not distributed at balance date.
54
35
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NNOOTTEE 1188:: RREESSEERRVVEESS
Foreign currency translation reserve
Share base payments reserve
EEccoonnoommiicc EEnnttiittyy
22002222
$$''000000
(74)
37
(37)
22002211
$$''000000
(10)
-
(10)
For an explanation of movements in reserve accounts refer to the Statement of Changes in Equity.
NNaattuurree aanndd ppuurrppoossee ooff rreesseerrvveess
FFoorreeiiggnn ccuurrrreennccyy ttrraannssllaattiioonn rreesseerrvvee
The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on consolidation, are
translated to Australian dollars at exchange rates prevailing at the balance sheet date. The revenues and expenses of
foreign operations are translated to Australian dollars at rates approximating to the exchange rates prevailing at the dates
of the transactions.
Exchange differences arising on translation of the foreign controlled entity are taken to the foreign currency translation
reserve. The reserve is recognised in profit and loss when the net investment is disposed of.
SShhaarree BBaassee PPaayymmeennttss RReesseerrvvee
The share based payments reserve is used to recognise the fair value of options issued but not exercised.
NNOOTTEE 1199:: CCAAPPIITTAALL
CCaappiittaall CCoommmmiittmmeennttss
The economic entity had no commitments for capital expenditure as at 30 June 2022 (2021: Nil).
NNOOTTEE 2200:: CCOONNTTIINNGGEENNTT LLIIAABBIILLIITTIIEESS
Estimates of the maximum amounts of contingent liabilities that may become payable:
- Bank guarantee by Amber Technology Limited in respect of Sydney property lease
No material losses are anticipated in respect of any of the above contingent liabilities.
NNOOTTEE 2211:: EEVVEENNTTSS SSUUBBSSEEQQUUEENNTT TTOO RREEPPOORRTTIINNGG DDAATTEE
The Directors have resolved to pay a dividend of 1.5 cents per share.
EEccoonnoommiicc EEnnttiittyy
22002222
$$''000000
612
612
22002211
$$''000000
612
612
Other than the above, there were no matters that have arisen since the end of the financial year that have significantly
affected, or may significantly affect the operations or state of affairs of the economic entity in future financial years.
55
36
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NNOOTTEE 55:: IINNCCOOMMEE TTAAXX ((ccoonnttiinnuueedd))
CC)) AApppplliiccaabbllee ttaaxx rraattee
The applicable tax rate is the national tax rate in Australia of 30%.
NNOOTTEE 2222:: RREELLAATTEEDD PPAARRTTYY TTRRAANNSSAACCTTIIOONNSS
KKeeyy mmaannaaggeemmeenntt ppeerrssoonnnneell ccoommppeennssaattiioonn
Key management personnel comprises directors and other persons having authority and responsibility for planning, directing
and controlling the activities of the economic entity.
EEccoonnoommiicc EEnnttiittyy
EEccoonnoommiicc EEnnttiittyy
22002222
1,264,898
143,898
17,761
19,965
1,446,522
22002222
$$''000000
22002211
133,451
773
359
1,309,055
(1,418)
2,503
16,752
29
42,926
8
333
1,502,184
67
76
29
2,759
22002211
$$''000000
714
378
(1,677)
2,857
31
64
611
13
86
41
3,118
-
9
9
-
-
-
-
Summary
DD)) AAnnaallyyssiiss ooff ddeeffeerrrreedd ttaaxx aasssseettss
Employee benefits
Plant and equipment
Short term employee benefits
Right-of-use assets
Post-employment benefits
Lease Liability
Long term employee benefits
Accrued expenses
Provision for impairment of receivables
Provision for obsolescence
Provision for warranty
Inventory
Other
Share-based employee benefits
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.
EE)) AAnnaallyyssiiss ooff ddeeffeerrrreedd ttaaxx lliiaabbiilliittiieess
Unrealised foreign currency gain
Plant and equipment
Other
One half of the options have vested (tranche 1 and tranche 2)
One quarter of the options vest on 30 September 2022; and
One quarter of the options vest on 30 September 2023.
These options vest as follows:
I.
II.
III.
75
47
2
124
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,337.500 options vested
with key management personnel (2021: 337,500).
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.
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.
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.
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:
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.
NNuummbbeerr
WWeeiigghhtteedd
AAvveerraaggee EExxeerrcciissee
PPrriiccee
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.
Options exercisable as at 30 June 2022
Options exercisable as at 30 June 2021
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.
325,000
400,000
$0.22
$0.22
56
24
37
OOppttiioonnss oouuttssttaannddiinngg aass aatt 11 JJuullyy 22002211
Granted
Forfeited
Exercised
Expired
OOppttiioonnss oouuttssttaannddiinngg aass aatt 3300 JJuunnee 22002222
22,,110000,,000000
-
-
725,000
-
11,,337755,,000000
$$00..2222
-
-
$0.22
-
$$00..2222
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NNOOTTEE 55:: IINNCCOOMMEE TTAAXX ((ccoonnttiinnuueedd))
CC)) AApppplliiccaabbllee ttaaxx rraattee
NNOOTTEE 2233:: SSHHAARREE BBAASSEEDD PPAAYYMMEENNTT AARRRRAANNGGEEMMEENNTTSS ((ccoonnttiinnuueedd))
The weighted average remaining contractual life of options outstanding at year-end was 3.5 years. The exercise price of
The applicable tax rate is the national tax rate in Australia of 30%.
outstanding shares at the end of the reporting period was $0.22.
EEccoonnoommiicc EEnnttiittyy
22002222
The fair value of the options granted to key management personnel is considered to represent the value of the employee
$$''000000
services received over the vesting period.
The value of the options is recognised in an option reserve until the options are exercised, forfeited, or expire.
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
Options issued over ordinary shares are valued using the Black-Scholes pricing model which takes into account the option
773
exercise price, the current level and volatility of the underlying share price, the risk-free interest rate, the expected dividends
359
on the underlying share, the current market price of the underlying share and the expected life of the option.
(1,418)
2,503
29
8
333
67
76
29
2,759
The weighted average fair value of options granted during the year was $Nil (2021: Nil). These values were calculated using the
Black-Scholes option pricing model applying the following inputs:
- Weighted average life of the option
- Weighted average exercise price:
5 Years
$0.22
-
-
Expected share volatility
Risk free interest rate
50%
1.20%
EE)) AAnnaallyyssiiss ooff ddeeffeerrrreedd ttaaxx lliiaabbiilliittiieess
Unrealised foreign currency gain
Plant and equipment
Other
75
Historical share price volatility has been the basis for determining expected share price volatility as it is assumed that this is
47
indicative of future volatility.
2
124
The life of the options is based on the historical exercise patterns, which may not eventuate in the future.
22002211
$$''000000
714
378
(1,677)
2,857
31
64
611
13
86
41
3,118
-
9
9
These shares were issued as compensation to key management personnel and other executives of the Group. Further details
relating to key management personnel are provided in the directors’ report.
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.
57
24
38
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NNOOTTEE 2244:: SSEEGGMMEENNTT RREEPPOORRTTIINNGG
(a) Description of segments
Management has determined the operating segments based on the internal reports that are reviewed and used by the
Board of Directors in assessing performance and determining the allocation of resources.
The economic entity comprises the following operating segments:
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
22002222
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
Profit for the year
AAsssseettss
-
-
-
Segment Assets
Unallocated/corporate assets
Total assets
LLiiaabbiilliittiieess
-
-
-
Segment liabilities
Unallocated/corporate liabilities
Total liabilities
PPrrooffeessssiioonnaall EElliimmiinnaattiioonnss
$$''000000
$$''000000
RReettaaiill
$$''000000
14,408
-
14,408
IInntteeggrraatteedd
SSoolluuttiioonnss
$$''000000
39,602
-
39,602
22,985
-
22,985
2,286
3,497
1,635
6,249
20,565
12,647
2,264
4,595
4,727
-
-
-
-
-
-
-
58
EEccoonnoommiicc
EEnnttiittyy
$$''000000
76,995
-
76,995
7,418
32
7,450
(1,260)
6,190
(925)
5,265
(1,584)
3,681
39,461
5,058
44,519
11,586
10,659
22,245
167
167
39
OOtthheerr
-
Acquisition of non current segment assets
25
75
67
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NNOOTTEE 2244:: SSEEGGMMEENNTT RREEPPOORRTTIINNGG ((ccoonnttiinnuueedd))
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
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
$$''000000
36,293
-
36,293
32,565
-
32,565
721
3,553
4,049
6,350
16,877
11,596
1,874
4,445
4,105
OOtthheerr
-
Acquisition of non current segment assets
21
62
55
-
-
-
-
-
-
-
80,140
-
80,140
8,323
(308)
8,015
(1,569)
6,446
(1,147)
5,299
(209)
5,090
34,823
4,987
39,810
10,424
13,974
24,398
138
138
59
40
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NNOOTTEE 2244:: SSEEGGMMEENNTT RREEPPOORRTTIINNGG ((ccoonnttiinnuueedd))
(c) Segment information on geographical region
Geographical Location
-
-
Australia
New Zealand
SSeeggmmeenntt RReevveennuueess ffrroomm
SSaalleess ttoo EExxtteerrnnaall
CCuussttoommeerrss
22002211
$$''000000
22002222
$$''000000
CCaarrrryyiinngg AAmmoouunntt ooff
SSeeggmmeenntt NNoonn CCuurrrreenntt
AAsssseettss
22002211
$$''000000
22002222
$$''000000
AAccqquuiissiittiioonn ooff NNoonn--
CCuurrrreenntt AAsssseettss
22002222
$$''000000
22002211
$$''000000
71,460
5,535
76,995
75,341
4,799
80,140
6,532
7,107
67
93
6,599
7,200
160
7
167
127
11
138
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 2022, $8,142,385 or 11% (2021: $4,993,416 or 6%) of the consolidated entity's external
revenue was derived from sales to a major Australian retailer through the Lifestyle Entertainment segment.
60
41
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 loss/(profit) on sale of plant and equipment
Non-cash share based payments
Changes in operating assets and liabilities (net of business combinations):
(Increase)/Decrease in trade and other receivables
Decrease/(Increase) in prepayments
(increase)/Decrease in inventories
(Decrease) in trade and other payables
Increase/(Decrease) contract liabilities
Increase in provisions
(Decrease)/Increase in income taxes payable
Decrease/(Increase) in deferred taxes
NNeett ccaasshh pprroovviiddeedd bbyy ooppeerraattiinngg aaccttiivviittiieess
EEccoonnoommiicc EEnnttiittyy
22002222
$$''000000
22002211
$$''000000
3
2,222
22,,222255
3
1,785
11,,778888
3,681
5,090
1,260
(281)
10
37
(924)
1,153
(3,626)
(633)
913
264
(473)
469
11,,885500
1,569
(166)
(1)
-
313
(690)
4,011
(3,073)
(1,903)
169
703
(495)
55,,552277
((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.
61
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:
-
-
-
credit risk
liquidity risk
market risk (including foreign currency risk and interest rate risk)
This note presents information about the economic entity's exposure to each of the above risks, the objectives, policies and
processes for measuring and managing risk and how the economic entity manages capital.
Liquidity and market risk management is carried out by a central treasury function (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, considering 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.
62
43
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
22002222
$$''000000
7,301
4,979
784
605
13,669
27
13,696
22002211
$$''000000
7,792
3,643
455
314
12,204
216
12,420
The economic entity does not have other receivables which are past due (2020: Nil).
The consolidated entity increased its monitoring of debt recovery as there was an increased probability of customers delaying
payment or being unable to pay, due to the Coronavirus (COVID-19) pandemic. At this time this concern has not materialized
and as such the amount of expected credit losses has decreased since the previous corresponding period.
BB)).. LLiiqquuiiddiittyy RRiisskk
Liquidity risk is the risk that the economic entity will not be able to meet its financial obligations as they fall due. The economic
entity's policy for managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity (cash reserves and
finance facilities) to meet its liabilities when due, under both normal and stressed conditions. The objective of the policy is to
maintain a balance between continuity of funding and flexibility through the use of finance facilities.
The economic entity monitors liquidity risk by maintaining adequate cash reserves and financing facilities and by continuously
monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities. The table below
summarises the maturity profile of the economic entity's financial liabilities based on contractual undiscounted payments:
CCoonnttrraaccttuuaall CCaasshh FFlloowwss
11 ttoo 55
YYeeaarrss
$$''000000
OOvveerr 55
YYeeaarrss
$$''000000
22002222
FFiinnaanncciiaall lliiaabbiilliittiieess dduuee ffoorr ppaayymmeenntt
Trade payable
Other accounts payable
Financial liabilities
Lease liability
Total expected outflows
FFiinnaanncciiaall aasssseettss -- ccaasshh fflloowwss rreeaalliissaabbllee
Trade receivables
Total anticipated inflows
WWiitthhiinn
11 YYeeaarr
$$''000000
3,994
2,823
1,337
1,739
9,893
13,669
13,669
-
-
-
8,190
8,190
-
-
Net inflow / (outflow) on financial instruments
3,776
(8,190)
-
-
-
-
-
-
-
-
63
TToottaall
$$''000000
3,994
2,823
1,337
9,929
18,083
13,669
13,669
(4,414)
44
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NNOOTTEE 2266:: FFIINNAANNCCIIAALL RRIISSKK MMAANNAAGGEEMMEENNTT ((ccoonnttiinnuueedd))
22002211
FFiinnaanncciiaall lliiaabbiilliittiieess dduuee ffoorr ppaayymmeenntt
Trade payable
Other accounts payable
Financial liabilities
Lease liability
Total expected outflows
FFiinnaanncciiaall aasssseettss -- ccaasshh fflloowwss rreeaalliissaabbllee
Trade receivables
Total anticipated inflows
WWiitthhiinn
11 YYeeaarr
$$''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
$$''000000
4,238
3,085
2,676
11,551
21,550
-
-
-
-
12,420
12,420
Net outflow on financial instruments
702
(8,798)
(1,034)
(9,130)
The carrying amounts of cash and cash equivalents, trade and other receivables and trade and other payables are assumed to
approximate their fair values due to their short term nature.
The fair value of debtor finance and lease liabilities is estimated by discounting the remaining contractual maturities at the
current market interest rate that is available for similar financial liabilities.
CC)).. MMaarrkkeett RRiisskk
Market risk is the risk that changes in market prices will affect the economic entity's income or the value of its holdings of
financial instruments. The activities of the economic entity expose it primarily to the financial risks of changes in foreign
currency rates and interest rates. The objective of market risk management is to manage and control market risk exposures
within acceptable parameters, whilst optimising the returns.
Foreign Currency Risk
The following table demonstrates the impact on the profit and equity of the economic entity, if the Australian Dollar
weakened/strengthened by 10%, which management consider to be reasonably possible at balance date against the respective
foreign currencies, with all other variables remaining constant:
Impact on profit
Impact on equity
WWeeaakkeenniinngg ooff 1100%%
22002222
$$''000000
(311)
22002211
$$''000000
(414)
SSttrreennggtthheenniinngg ooff 1100%%
22002222
$$''000000
255
22002211
$$''000000
338
(311)
(414)
255
338
64
45
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NNOOTTEE 2266:: FFIINNAANNCCIIAALL RRIISSKK MMAANNAAGGEEMMEENNTT ((ccoonnttiinnuueedd))
Interest Rate Risk
The economic entity has a debtor financing facility. The use of the facility exposes the economic entity to cash flow interest
rate risk.
As at the reporting date, the economic entity had the following fixed and variable rate borrowings:
Note
WWeeiigghhtteedd aavveerraaggee iinntteerreesstt rraattee
BBaallaannccee
22002222
%%
22002211
%%
22002222
$$''000000
22002211
$$''000000
Debtor finance
Business transaction facility
Financial liabilities
14
14
6.20%
6.20%
6.57%
6.64%
6.21%
6.57%
927
328
1,255
1,896
780
2,676
The following table demonstrates the impact on the profit and equity of the economic entity if the average interest rate on the
borrowing facility had either increased or decreased by 1%, which management consider to be reasonably possible over the
whole year ending 30 June 2020, with all other variables remaining constant:
Impact on profit
Impact on equity
IInnccrreeaassee ooff 11%% ooff aavveerraaggee
iinntteerreesstt rraattee
22002211
$$''000000
(27)
22002222
$$''000000
(13)
DDeeccrreeaassee ooff 11%% ooff aavveerraaggee
iinntteerreesstt rraattee
22002211
$$''000000
27
22002222
$$''000000
13
(13)
(27)
13
27
DD)) NNeett FFaaiirr VVaalluueess
The net fair values of assets and liabilities approximate their carrying values. No financial assets or liabilities are readily traded
on organised markets.
EE)) CCaappiittaall MMaannaaggeemmeenntt
The Board's aim is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain
future development of the business. The Board seeks to maintain a balance between the higher returns that might be possible
with higher levels of borrowings and the advantages and security afforded by a sound capital position.
Total capital is defined as shareholders' equity. The Board monitors the return on capital, which is defined as net operating
income divided by total shareholders' equity. The Board also establishes a dividend payout policy which is targeted as being
greater than 50% of earnings, subject to a number of factors, including the capital expenditure requirements and the
company's financial and taxation position. Dividends paid or reinvested as part of the Dividend Reinvestment Plan during the
year ended 30 June 2022 were $2,626,000 (2021: $1,379,000).
There were no changes to the economic entity's approach to capital management during the financial year.
65
46
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NNOOTTEE 2277:: EEAARRNNIINNGGSS PPEERR SSHHAARREE
AA)) BBaassiicc eeaarrnniinnggss ppeerr sshhaarree ((cceennttss))
Weighted average number of ordinary shares (number)
Earnings used to calculate basic earnings per share ($)
EEccoonnoommiicc EEnnttiittyy
22002222
$$''000000
4.2
22002211
$$''000000
6.7
87,694,207
76,509,790
3,681,000
5,090,000
Basic earnings per share is calculated by dividing the profit attributable to equity holders of the company, excluding any costs
of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the year,
adjusted for bonus elements in ordinary shares issued during the year.
BB)) DDiilluutteedd eeaarrnniinnggss ppeerr sshhaarree ((cceennttss))
Weighted average number of ordinary shares (number)
Earnings used to calculate diluted earnings per share ($)
4.2
6.6
88,114,892
76,621,662
3,681,000
5,090,000
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the
after-income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the weighted
average number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary shares.
NNOOTTEE 2288:: DDIIVVIIDDEENNDD
Final dividend for the year ended 30 June 2021 of 1.6 cents per share, fully franked, paid on 5 October
2021 (2020: 0.3 cents)
Paid in Cash
Reinvested as part of the Dividend Reinvestment Plan
EEccoonnoommiicc EEnnttiittyy
22002222
$$''000000
11,,223311
635
596
22002211
$$''000000
222299
229
-
Interim dividend for the year ended 30 June 2022 of 1.5 cents per share, fully franked, paid on 31 March
2022 (2021: 1.5 cents)
Paid in Cash
11,,339955
1,395
11,,114499
1,149
TToottaall DDiivviiddeennddss
Franking credits available for subsequent financial years at the 30% corporate tax rate after allowing for
tax payable in respect of current year's profit and tax rules
22,,662266
11,,337799
66,,447755
66,,225544
DDiivviiddeennddss nnoott rreeccooggnniisseedd aatt yyeeaarr eenndd
Since year end, the Directors have declared a fully franked final dividend of 1.5 cents per share. The total
amount of the dividend expected to be paid on the 30 September 2022 out of retained profits, but not
recognised as a liability at year end;
11,,339955
11,,222266
66
47
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NNOOTTEE 2299:: AAUUDDIITTOORRSS'' RREEMMUUNNEERRAATTIIOONN
The disclosures include amounts received or due and receivable by BDO Audit Pty Ltd and their respective related entities.
AAuuddiitt sseerrvviicceess
BDO Audit Pty Ltd
Audit and review of financial reports under the Corporations Act 2001.
Total remuneration for audit services
NNoonn--aauuddiitt sseerrvviicceess
BDO Services Pty Ltd
Tax compliance services, including review of company income tax returns
Other practices - BDO Auckland
Tax compliance services, including review of company income tax returns
Total remuneration for non-audit services
22002222
$$
22002211
$$
136,771
136,771
127,065
127,065
21,480
31,345
6,742
28,222
5,935
37,280
It is the economic entity's policy to employ BDO on assignments additional to their statutory audit duties where BDO's
expertise and experience with the economic entity are important. These assignments are principally tax compliance
assignments.
67
48
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NNOOTTEE 3300:: PPAARREENNTT EENNTTIITTYY IINNFFOORRMMAATTIIOONN
Information relating to Ambertech Limited (parent entity):
Current Assets
Total Assets
Current Liabilities
Total Liabilities
Share capital
Share issue cost reserve
Retained earnings
Profit of the parent entity
Total comprehensive income of the parent entity
CCoonnttiinnggeenntt LLiiaabbiilliittiieess
The parent entity had no contingent liabilities as at 30 June 2022 (2021: Nil).
PPaarreenntt EEnnttiittyy
22002222
$$''000000
22002211
$$''000000
21,865
16,501
26,422
21,084
1,674
2,165
1,674
2,165
21,782
15,948
37
2,929
2,584
-
2,971
1,369
2,584
1,369
CCaappiittaall CCoommmmiittmmeennttss
The parent entity had no capital commitments for property, plant and equipment as at 30 June 2022 (2021: 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.
68
49
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NNOOTTEE 3311:: BBUUSSIINNEESSSS CCOOMMBBIINNAATTIIOONNSS
•
•
On the 06 September 2021, Ambertech Limited acquired the assets of Noise Toys Imports Pty Ltd, a Musical
Instrument (MI) distributor.
On the 31 October 2021, Ambertech Limited acquired Connected Media Australia Pty Ltd (CMA), an Audio
Visual (AV) distributor. The acquisition included 100% purchase of all shares in CMA.
Consideration
Cash on completion
-
-
Cash on final settlement
Total asset purchase / investment
Retirement of pre-acquisition debt
Total consideration
Net identifiable assets acquired
Supplier Relationships
-
Customer Relationships
-
Cash and cash equivalents
-
Trade and Other receivables
-
Inventories
-
Plant and Equipment
-
-
Trade and Other payables
Total net identifiable assets acquired
Goodwill on acquisition
Outflow of cash used to acquire businesses net of cash acquired
NNooiissee TTooyyss
CCMMAA
TToottaall
Fair Value
$'000
Fair Value
$'000
Fair Value
$'000
559
-
559
-
559
15
10
-
-
371
-
-
396
163
559
681
25
706
576
1,282
-
-
17
545
835
13
(385)
1,025
257
1,240
25
1,265
576
1,841
15
10
17
545
1,206
13
(385)
1,421
420
1,282
1,841
Transaction costs regarding CMA $16,230 were recognised in respect to this acquisition for the financial year and are
included in the consolidated statement of profit or loss and other comprehensive income.
NNooiissee ttooyyss -- IImmppaacctt ooff aaccqquuiissiittiioonn oonn tthhee rreessuullttss ooff tthhee GGrroouupp
AASB 3 Business Combinations requires disclosure of both the revenue and profit and loss of the acquired business from
the date of acquisition, and disclosure of revenue and profit and loss for the current reporting period as though the
acquisition date had been as of the commencement of the financial period. Since the acquisition date;
•
Noise Toys Imports has contributed $1,330,000 of revenue to the group.
Management has however determined that disclosure of the profit and loss of the acquired business from date of
acquisition is impracticable, given it has now consolidated with the existing business of Ambertech Limited.
Management has also determined that it is impractical to determine the revenue and profit and loss of the entity for the
current reporting period as though the acquisition date occurred at the beginning of the reporting period, as the
acquired business was not separately reported within the business of the acquiree.
69
50
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NNOOTTEE 3311:: BBUUSSIINNEESSSS CCOOMMBBIINNAATTIIOONNSS ((CCOONNTTIINNUUEEDD))
CCMMAA -- IImmppaacctt ooff aaccqquuiissiittiioonn oonn tthhee rreessuullttss ooff tthhee GGrroouupp
AASB 3 Business Combinations requires disclosure of both the revenue and profit and loss of the acquired business from
the date of acquisition, and disclosure of revenue and profit and loss for the current reporting period as though the
acquisition date had been as of the commencement of the financial period. Since the acquisition date;
•
Connected Media Australia Pty Ltd has contributed $1,683,000 of revenue to the group, including revenue from
the brands that were acquired but now sold through Amber Technology Limited.
Management has however determined that disclosure of the profit and loss of the acquired business from date of
acquisition is impracticable, given it has now consolidated with the existing business of Ambertech Limited.
Management has also determined that it is impractical to determine the revenue and profit and loss of the entity for the
current reporting period as though the acquisition date occurred at the beginning of the reporting period. This is due to
the consolidation of the acquired business into the existing business of Ambertech Limited during the year and the
cessation of various lines of business previously undertaken by the business of the acquiree.
70
51
AMBERTECH LIMITED AND CONTROLLED ENTITIES
ACN 079 080 158
DIRECTORS’ DECLARATION
The directors of the company declare that:
1.
2.
3.
4.
The financial statements, comprising the consolidated statement of profit or loss and other comprehensive income,
consolidated statement of financial position, consolidated statement of cash flows, consolidated 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 2022 and of its performance
for the year ended on that date.
The company has included in the notes to the financial statements an explicit and unreserved statement of
compliance with International Financial Reporting Standards.
In the directors' opinion, there are reasonable grounds to believe that the company will be able to pay its debts as
and when they become due and payable.
The directors have been given the declarations by the chief executive officer and chief operating officer required by
Section 295A of the Corporations Act 2001.
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:
P F Wallace
DDiirreeccttoorr
P A Amos
DDiirreeccttoorr
Dated this 25th day of August 2022
Sydney
71
52
SHAREHOLDERS INFORMATION
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
to 1,000
to 5,000
to 10,000
10,001
to 100,000
100,001
and over
102
292
132
336
92
59,684
817,506
1,033,928
12,747,991
78,385,710
0.06
0.88
1.11
13.70
84.25
Total
954
93,044,819
100.00
The number of security investors holding less than a marketable parcel
of 1,563 securities is 150 and they hold 125,108 securities.
72
EQUITY SECURITY HOLDERS
The twenty largest shareholders as at 5 October 2022 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)
Horrie Pty Ltd (Horrie Superannuation)
Mr Edwin Goodwin & Ms Julia Griffith (EFG Investments)
Wavelink Systems Pty Ltd
Wallace Capital Pty Ltd (Super Fund)
SI Corporation Pty Ltd (Santo Carlini DT)
Martini Super Pty Ltd (Martini Super Fund)
Rubi Holdings Pty Ltd (John Rubino Superfund)
BNP Paribas Nominees Pty Ltd (IB AU Noms Retail Client DRP)
Hillmorton Custodians Pty Ltd (The Lennox Unit)
R&B Invest Pty Ltd
Mr Michael Carman & Mrs Alisha Carman (M Carman Investment Fund)
Mr Robert Douglas Lewin
BNP Paribas Noms Pty Ltd (DRP)
Breuer Investments Pty Ltd (Mark Breuer Family)
NSR Investments Pty Ltd (NSR Super Fund)
Source: Boardroom Pty Limited
Number of shares
% of total
capital
27,758,357
29.83
5,197,555
4,455,350
3,485,850
3,161,735
3,075,000
2,883,556
2,784,625
2,493,206
1,640,182
1,000,000
1,000,000
801,959
686,000
604,282
542,161
500,000
498,477
455,000
425,000
5.59
4.79
3.75
3.40
3.30
3.10
2.99
2.68
1.76
1.07
1.07
0.86
0.74
0.65
0.58
0.54
0.54
0.49
0.46
63,448,295
68.19
73
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
Number of shares
% of total capital
Appwam Pty Limited
Wavelink Systems Pty Ltd
Crowton Pty Limited
27,638,357
7,214,975
4,935,055
29.83
7.83
5.59
UNQUOTED SECURITIES
There are a total of 1,325,000 unquoted securities on issue as follows:
Description
Number of Options Number of holders
Options over ordinary shares
1,325,000
8
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 2022.
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 2022 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.
74
CORPORATE DIRECTORY
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 Wallace
Chairman
Peter Amos
Managing Director
Tom Amos
David Swift
Santo Carlini
Company Secretary
Robert 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
75
N O T E S
76
77
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
78