AMA Group published its first half financial results today with another freeze on dividends for shareholders. The report stated that going forward there would be a ‘transition in leadership style – from entrepreneurial and big picture to operations’. New CEO Carl Bizon also cited ‘small independent panel businesses impacted by COVID-19 related trading conditions,’ as an ‘opportunity for industry consolidation increasing’ and predicted growth in the Capital SMART network.
The reported profit was $7.098m against a background of $30.7m received for JobKeeper and $70m from the sale of AMA’s aftermarket arm ACAD (which also contributed $7m in this reporting period before it was sold). Total group revenue and other income was $434.2m with net debt at 31 December 2020 of $151.1m.
AMA reported vehicle panel repairs have seen an average decline in volume of 27% compared to the previous corresponding period (PCP). The group, excluding Victoria, experienced an average decline in volume of 16% to PCP.
Individual state impacts with a decline in volume were as follows: VIC 48%, NSW 18%, NZ 17%, QLD 15%, WA 12%, SA 8% and ACT 7%. This was attributed to COVID-19 lockdowns. No mention was made of increased competition in the marketplace such as the rapidly expanding Repairhub or Motorone networks.
The heavy vehicle division contributed 15% of AMA’s EBITDA (earnings before interest, taxes, depreciation, and amortisation. Normalisations of $9.4m were reported for the SMART paint agreement termination fee to PPG. Also included in the reporting period was a $7m EBITDAI contribution from ACAD before it was sold.
Steve Bubulj, head of the panel division said only two sites had closed in the last 12 months. The increase in revenue and EBITDAI in the panel division is largely due to a full six months trading for acquisitions such as Capital SMART and 9 sites acquired in the prior half-year (HY 2020), the report says.
The company reported two acquisitions - Western Trucks (8th heavy motor site) and Perth Brake Parts (ACM Parts geographic expansion to the West Coast). This is compared to 61 acquisitions reported in PCP.
Share value declined after the announcement was made, indicating market disappointment with the results.