As reported in March this year, the AMA Group delivered a disappointing half year result which ultimately led to the decision not to pay an interim dividend. However, at the time of that announcement, the organisation reaffirmed its commitment to deliver their full year result in line with their previous guidance. You may recall there was some market cynicism at the time, as their share price dropped 35% whilst the ASX 200 fell 8.5% in the same period.
Of course, all of this was pre-COVID and when the economic impact of the various lockdowns around the country became apparent, the board withdrew their full year guidance. And with good cause.
As the 2020 full year results show, the business recorded an operating loss before interest and tax of $51.3m, compared to an operating profit of $34.0m in 2019. Unsurprisingly, there was also no full year dividend.
The annual report reveals the Group has taken impairment charges of $52.8m, the majority of which is a write down against the carrying value of the goodwill in Capital SMART, and has availed itself of various government assistance packages to support the business through these tough times.
Looking forward, whilst many of the Group’s key initiatives are still a work in progress, importantly, their growth strategy remains a focus. The Group believes there are still significant opportunities across its operations, and it continues to assess “a domestic pipeline of strategically attractive and value accretive bolt-on acquisition opportunities to enhance the organic growth profile.” Over the past week, the share price has moved largely in-line with the market.
Rather than provide a full analysis of the results, the information is available in the annual report at: https://amagroupltd.com/investor-centre/annual-reports/.