AMA Group released its 2023 Quarterly Cash Flow and Activities Report last week and the company continues its improvement curve under the leadership of Matthew Cooper.
Vehicle Collision Repair performed ahead of expectations - 2Q24 revenue was up 12.7% on 2Q23, while volumes reduced 5.8% following network rationalisation activities in FY23. This revenue increase reflects the higher average price of repair.
Capital S.M.A.R.T continued to deliver operating results ahead of expectations in 2Q24. AMA Collision EBITDA margins were impacted by factors including ramp up of newly opened sites and ongoing labour constraints.
The upgrading of the Capital S.M.A.R.T network to allow a full spectrum of drivable repairs is ahead of schedule. The more efficient service model is already contributing to improved business performance, the company says. The renovation of the Craig Hall site in ACT is progressing as is that of prestige site Harris and Adams in Gosford, NSW and both are expected to open in early 2024.
Retention initiatives have seen a reduction in annual voluntary turnover from 39.9% in December 2022 to 30.2% in December 2023. The total number of apprentices has continued to grow, closing the year with 442 apprentices across the AMA Group network
140 international recruits are awaiting visa approval and relocation. ADAS equipment has landed in Australia and will be rolled out to six sites from 3Q24.
The Heavy Motor business unit delivered strong revenues through the quarter (up 10.9% on 2Q23). Plans are continuing for refurbishment and rebranding of sites throughout the Heavy Motor network.
ACM Parts
Sales parallel and aftermarket products have increased 67.6% 1H24 vs 1H23, however due to a number of factors ACM EBITDA is tracking below expectations. ACM is expanding its distribution network and placing an order for twelve additional delivery vans, in New South Wales and Queensland.
Summary of cash position
AMA Group ended 2Q24 with a cash balance of $34.3 million and unused available finance facilities of $1.7 million, including the pay down of $35.0 million of bank loans in December 2023.
The Group generated positive operating cash flows of $1.8 million during the quarter after including $7.8 million in principal elements of leases.
AMA Group maintains FY24 guidance range of $89 - $96 million normalised post-AASB 16 EBITDA, or $42 - 49 million normalised pre-AASB 16 EBITDA.