Why Did Ambertech’s Profit Drop 38% Despite 6% Revenue Growth in FY25?
Ambertech Limited reported a 6% increase in revenue to $101.2 million for FY25, yet net profit after tax fell sharply by 38% to $0.84 million amid inflationary pressures and increased costs. The company declared a fully franked final dividend and remains optimistic about FY26.
- Revenue increased 6% to $101.2 million in FY25
- Net profit after tax declined 38% to $0.84 million
- EBITDA surged in second half driven by Broadcast Media and Defence projects
- Operating cash flow positive but reduced to $0.6 million
- Final dividend of 0.6 cents per share declared, fully franked
Financial Performance Overview
Ambertech Limited (ASX – AMO) has released its financial results for the year ended 30 June 2025, revealing a mixed performance. The company achieved a respectable 6% rise in revenue to $101.2 million, reflecting ongoing strength in its dealer network and growth in key sectors such as Broadcast Media, Defence, and Law Enforcement. However, net profit after tax (NPAT) declined by 38% to $0.84 million, impacted by inflationary cost pressures and increased investments in marketing and employee expenses.
Second Half Momentum and Segment Highlights
The results tell a tale of two halves, with EBITDA improving markedly from $1.1 million in the first half to $3.2 million in the second half of FY25. This uplift was largely driven by substantial project deliveries and equipment sales in Broadcast Media and Defence sectors, alongside steady sales to retail, residential, commercial, and professional customers. Ambertech maintained stable margins despite softer market conditions, avoiding material discounting.
Cash Flow and Balance Sheet Position
Operating cash flow remained positive at $0.6 million, though down from $5 million in the prior year, reflecting the increased working capital requirements and investments to support growth. Net debt rose slightly to $4.2 million, with the company extending its finance facilities with Octet Finance Pty Ltd, including invoice discounting and business transaction facilities totaling up to $14 million. The balance sheet remains solid with net tangible assets per share increasing to 19.8 cents.
Dividend and Shareholder Returns
The Board declared a final fully franked dividend of 0.6 cents per share, representing a payout ratio of 68%. This follows an interim dividend of 1.2 cents per share paid in the prior period. The company has elected not to activate its Dividend Reinvestment Plan for this final dividend. Shareholders have shown strong support for the remuneration report, with 95% approval at the AGM.
Outlook and Strategic Focus
Looking ahead, Ambertech remains optimistic that the positive momentum from the second half of FY25 will continue into FY26. Early trading in July and August supports this confidence, with expectations of materially improved EBITDA margins and stronger operating cash flows to reduce net debt. The company continues to focus on leveraging its core strengths as a technical distributor, expanding product offerings, and evolving revenue channels to drive growth.
Risks and Governance
Ambertech acknowledges ongoing risks including competitive market pressures, technological disruption, supply chain challenges, and regulatory compliance. The Board and management remain vigilant in cost control and risk management. No changes to the Board or executive team were announced, and remuneration structures remain aligned with performance targets.
Bottom Line?
Ambertech’s FY25 results reflect resilience amid cost pressures, but the path to restoring profit growth hinges on sustaining second-half momentum and managing inflationary headwinds.
Questions in the middle?
- Can Ambertech sustain its improved EBITDA margins and cash flow in FY26 amid inflationary pressures?
- How will competitive dynamics and technological changes impact Ambertech’s market share and pricing power?
- What are the company’s plans to reduce net debt and optimize capital structure going forward?
