Ambertech Reports 7% Revenue Rise but Posts $2.6m Statutory Loss in 1H FY26

Revenue Growth Amidst Profitability Challenges

Ambertech Limited (ASX: AMO), a player in building automation and control systems, reported a 7% increase in revenue to $48.5 million for the first half of fiscal 2026. This growth was primarily driven by a robust 39% surge in its Professional segment, reflecting a return to normal project delivery rhythms after disruptions in the prior year.

Despite this top-line improvement, Ambertech posted a statutory net loss after tax of $2.6 million, a significant deterioration from a $0.3 million loss in the prior corresponding period. The loss was heavily influenced by one-off impairment charges totaling $2.9 million, including a $0.96 million goodwill write-down and a $1.9 million inventory provision, reflecting a strategic reassessment of asset values.

Strategic Reset to Restore Profitability

In response to these challenges, Ambertech’s Board undertook a comprehensive review of the company’s performance, capital allocation, and operational structure. The review highlighted the need for sharper strategic focus, improved inventory and working capital management, clearer accountability for capital returns, and simplified operations.

The Board has set a strategic direction aimed at restoring profitability, strengthening the balance sheet, and enhancing return on capital employed. Key initiatives include accelerated optimisation of aged inventory, a brand portfolio review to prioritise capital allocation, and continued investment in growth segments. These initiatives are slated for implementation in the second half of FY26 and into FY27.

Financial Position and Outlook

Ambertech’s cash reserves declined to $1.1 million at the end of December 2025 from $3.5 million six months earlier, with operating cash outflows increasing slightly to $3.6 million. The company maintains access to banking facilities to support working capital needs and remains confident in its ability to continue as a going concern.

Looking ahead, the Board expects the second half of FY26 to reflect improved capital discipline and stabilisation in key segments, supported by a positive pipeline of orders in building automation and control. While competitive trading conditions persist, management is focused on disciplined execution of the strategic reset to deliver sustainable shareholder returns.

Leadership Commentary

Chairman Tom Amos emphasised the importance of disciplined execution, stating, "The Board has clarified the strategic direction of the Group. The next phase is timely and disciplined execution." Managing Director Peter Amos added, "Our priority now is to convert that framework into a practical action plan that improves performance and strengthens returns."