AMA Group posted its results from the financial half year which ended on 31 December 2018.
Profit before tax was up from $12,272,000 in the same period last year to $15,346,000. Acquisitions reported were the Accident Repair Management Group in Sydney which included Mount Druitt Auto Body Repairs and Northern Smash Repairs. It also reported opening two greenfield sites and that the network now consists of 118 shops.
The report said that while the market was challenging, the results were in line with the directors' expectations which show a substantial increase in the group's operating result.
Reported earnings before interest, tax, depreciation and amortisation (“EBITDA”) has increased from $20.6 million to $24.3 million; a 17.77 % increase. The report stated:
Financial Position
The financial position of the group is strong with borrowings of the company increasing slightly during the period to $55 million.
This robust financial position will allow the group to take advantage of the large number of attractive acquisition and greenfield expansion opportunities currently before it as well as allow the Group to grow its exciting new procurement division.
The Future
The directors believe that the strong financial performance of AMA in the current reporting period reflects the ongoing outcomes of the previously outlined strategic direction and are in line with the director’s expectations.
Whilst the economic outlook and market conditions across some business segments are likely to remain challenging, AMA believes that its continued application of key management strategies combined with its acquisition strategy will continue to boost future earnings.
The board believe that there are still substantial growth opportunities presenting to our key business divisions. The consolidation of the Vehicle Panel Repair industry will continue and management are actively seeking new “greenfield” sites.
The acquisition of further businesses will provide further scale to our operations.
The results follow news at the end of last year about major new investors in the group including Myer Family Investments and AustralianSuper.