CE distribution company Ambertech is in the red after forecasting up to $1.3M loss
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Ambertechnology has issued a profit warning to shareholders in an announcement to the ASX today, forecasting a loss (after tax) of between $1.1- 1.3M – compared to a profit of $126,000 recorded last year.
The troubled company has also forecast a drop in sales revenue (compared to 2011) of as much as $15 million to $51-53 million -a significant drop from $66m sales recorded last year.
The loss was blamed on restructuring costs of $465,000 and for the first time the company made a provision of $150,000 against bad debts following the collapse of WOW Audio Visual stores, which shut in February.
The company is also on a public relations offensive and is now looking for a PR agency to represent them, having traditionally shunned the use of agencies.
In addition, the company warned shareholders these results may vary due to “uncertainty of timing of major project work and continuing uncertainty in consumer spending behaviour.”
The French Forest based company has suffered a dramatic fall in profits in recent years and announced a massive 92% slump in profits last year and hoped a restructure to the business would turn its fortunes around.
Amber supplies all the main retailers including Dick Smith, Officeworks, and Harvey Norman. Shares were unchanged today following the announcement.