The AMA Group have finished the last half of 2024 with increased earnings over last year, and despite some mixed results has shown a continuing turnaround to their financial situation.
The AMA Group released the first half of their 2024/2025 financial year results and reported an increase in earnings before tax etc, up from 17 per cent on the first half of 2024.
After a tough year in 2023 and a year of major change culminating in some positive revenue growth in 2024, Australia’s largest repair group is reporting some positives and other areas in need of improvement.
It has also reported increases in staff numbers to 3469 ( +40), including 103 new recruits under its skilled migration intake, along with continuing plans for expansion for some of its specialised units with seven more TechRight sites planned for 2025.
Wales Heavy Vehicles was again a standout strong performer with a 13.9 percent increase in earnings and growth in other areas adding the new location Parins in WA, to its existing eight sites in March.
Some repair numbers were down including for drivable collisions at Capital SMART (down 2.1k to 74.4k) and for AMA collision ( down 7.1k to 42.8k down) but revenue in some other areas increased including Capital SMART, Wales Heavy Vehicles, ACM Parts and the Specialist Businesses.
It also reported the plans to sell ACM Parts were continuing.
The Group reported an operating cash flow of $10.5m, an improvement of $15.5m on pcp.
Highlights include:
Capital Smart
Capital SMART’s operating performance more than offsetting prior year transitional support. Capital Smart reported 74,400 repairs for the first half of 2025, 2,100 down from the first half of 2024.
- 10.8 per cent Normalised EBITDA a strong improvement on prior year, with extended repair scope resulting in a higher average repair price, improved site efficiency and utilisation, in addition to offsetting transitional support
- New and transferred repair capacity has balanced AMA Group capacity with available repair volume
- The relationship with Suncorp is strong with Capital SMART delivering improved end customer outcomes
AMA Collision
AMA Collision continuing the turnaround program with good progress made, however there is significant room for further improvement to drive financial performance. AMA Collision reported 42,800 repairs, down by 7,100 from the first half of 2024.
- New EGM (Stuart Faid) appointed to lead business unit in July 2024
- Good portfolio progress, however impacts of lower industry claims volumes in November and December impacted financial performance in 2Q25. Claims volumes were lower anecdotally on the back of higher excess levels, deferral of claim due to cost of living prioritisation and lower vehicle use. Structural change to address residual network capacity issues was largely completed by end 1H25
- Cultural change continues to gather momentum and insurance relationships improved, which will drive significantly improved financial performance
Specialist Businesses
Wales continued to grow and outperform with bottleneck removal projects delivering improved results. Specialist Businesses saw growth with 3,100 repairs.
- Prestige sites revenue and EBITDA (pre-AASB 16) behind prior year. New contracts due to commence 3Q25 are expected to improve performance
- TechRight expansion continues now preliminary trial has been evaluated as a success
- TrackRight transition and expansion is progressing well with performance slightly behind due to the major Dandenong site relocation completed in Dec 24
Wales Heavy Vehicle
Wales has grown pre-AASB 16 EBITDA 63 per cent half-on-half.
- 13.9 per cent EBITDA performance ahead of full year prior year and embeds 2H24 performance
- Bottleneck removal projects have delivered ahead of business case expectations with both Adelaide and Newcastle sites outperforming
- Parins WA transformative project is well underway and has caused some site disruption over December / January
ACM Parts
ACM Parts continues to improve performance on strong revenue growth.
Sales process update:
- The AMA Board has determined AMA should focus on a pure collision repair business and as such is evaluating divestment options
- Sale process continues
- Whilst discussions with interested parties are ongoing, the Company is also assessing alternative strategies to maximise shareholder value which may include a possible demerger / IPO
- The Company will provide further updates as material developments occur
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