AMA Group Ltd, industry leader in three key automotive industry sectors: vehicle panel repair, automotive components and accessories, and procurement and distribution have posted their results, delivering strong returns for shareholders.
Revenue was up almost 21 percent to $616 million delivering a normalised EBITDA of $58.2 million and a net profit after tax of $21.7 million. Earnings per share were up almost 40 percent to 4 cents per share.
The vehicle panel repair business now boasts a national footprint of around 130 panel sites offering a unique service proposition to key insurance customers and their policyholders, the automotive components and accessories business focuses on key growing market niches with unique products and longstanding distribution partners and the group expanded into the procurement and distribution business delivering cost effective consumables for the motor vehicle panel industry.
As the principal consolidator in highly fragmented $7.2 billion industry, the vehicle panel repair business contributes 86 percent of revenue, built on long-term relationships with major insurers, OEMs and dealers and delivered strong year on year growth in sales and EBITDA.
Some of the more notable achievements were the integration of 21 acquisitions, the establishment of four greenfield sites and the diversification into the heavy vehicle repair industry with six businesses across three states. Steve Bubulj was appointed CEO to lead the vehicle panel repair business unit, which also completed the rollout of a new ERP system, relocated the division’s support centre, launched a digital, centralised estimating service to insurer and fleet clients, completed the rollout of GemSafe and commenced the rollout of Torque.
In addition to the financial results, AMA Group also announced the decision of its executive chairman, Ray Malone, to step down from the chairman role and the board effective 31 August. CEO, Andy Hopkins said: “Ray has been instrumental in the development of AMA Group from two panel repair stores to the $800 million market capitalisation 140 site business it is today. His entrepreneurial spirit and understanding of the panel repair industry are without peer and, on behalf of the board, management and all shareholders, we sincerely thank him for his service.” The board has elected Anthony Day as chairman, effective 1 September.
Directionally, post Gemini’s earn out, significant changes were made to both the board of directors and management team with a renewed focus on corporate governance, the corporate strategy will ensure that AMA Group realises the significant market opportunities. The group will then focus on key strategies and goals around acquisitions, people, processes, systems and brand, with the strategic goal to be on-track to become an ASX200 company and reach $1 billion revenue mark by 2021. As previously stated: AMA Group is a serious player that will continue to dominate the collision industry landscape.