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AMA Group ‘outperforms’ in first quarter as repair revenue climbs and new projects flagged

The AMA Group board has some good news to take to its November AGM with first quarter results for the 2023/24 financial year tracking better than expected and more plans for growth ahead.

In a statement to the ASX, the AMA Group has reported earnings of $27.3 million and noted that if these results should continue, they could revisit their annual earnings forecast range of $86 to 96 million for the full year.

The volume of repairs in the July to September period at 66,700 units also climbed but remained four percent down on the same time last year.

However, repair revenue had climbed to $235.3 million, a 19 percent increase reflecting the average cost of a repair rising to $3352, up from $2914 in 2022, due to cost increases and the severity of the repairs.

ACM Parts has also reported an average daily parts sales increase up to $278,000 up from $204,00 at the same period last year.

This will be some upbeat news for the planned EGM on November 23, following some difficult trading conditions in 2022 and 2023 and reports of overall losses at the end of the last two financial years where the company did not pay share dividends.

Carl Bizon

November will also be the last AGM for outgoing CEO Carl Bizon and the first as chair for Caroline Waldron.

AMA Group chair Caroline Waldron told the National Collision Repairer last month she was confident of the solid position the group was now in.

“It’s been tough, but we’ve navigated those challenges and feel like we’re in a solid position,” Waldron said in an interview with NCR.

“We’ve just completed our fully underwritten $55 million capital raise. We are about to commence debt refinancing shortly.

“We have some strong initiatives coming up over the next 12 months. We have a team that is completely motivated to drive revenue, manage costs and improve productivity. We are feeling quietly optimistic about where we are and where we need to get to.”

Caroline Waldron

Last financial year the AMA Group reported earnings of $64.6 million for 2022/23, a figure that itself was boosted by a late year surge after a flat 2022 where earnings were only $21 million.

The tough business conditions also contributed to a net loss after tax of $146.8 million, slightly lower than 2022 including a non-cash impairment of $116.8 million for the two collision businesses.

AMA Group had expected its earnings to increase in 2023/24 based on strong trading results from May to August this year.

The board will be hoping issues of what it described as “transition year” in 2023 such as ongoing inflation that impacted the costs of parts paints and other consumables, are behind it as it seeks to consolidate on the improvements.

For the 2022/23 year, the AMA Group recorded revenue of $844.9million for its combined businesses that includes 140 repair shops, the ACM Parts business and heavy vehicle repairs that collectively repair more than 260,000 vehicles and supplied 220,000 new and recycled parts.

Other growth projects AMA Collision announced to the ASX include the opening of the Arundel specialised facility in August (Pictured above).

RMA Hallan has also transferred into a larger centre inDandenong in one of Melbourne’s major growth areas.

This will be followed by a similar venture in Townsville, Queensland where two old workshops will be combined into one collision centre following the Arundel customer focussed model.

In Gosford , a new centre called AMA Prestige will replace Harris and Adams and offer roughly twice the space.

There are also plans to reopen the Craig Hall site in the ACT with progress toward it being fully staffed by early 2024.,

More details on. the AMA Group first quarter here. 




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