The AMA Group Limited has provided its quarterly business update for the quarter ended 31 March 31, 2025.
The Group has noted that it has successfully completed refinancing of debt facilities for three years and it has redeemed $50 million of convertible notes, which completed the Group’s capital restructure.
It has reported earnings before tax of $21.1 million, which was up 97.2 per cent ($10.7 million) on the same period last year.
The Group had a positive operating cash inflow for the quarter of $5.3 million after all lease costs – an improvement of $12.3 million from quarter three in 2024.
Capital SMART continued to perform well due to improved site efficiency and utilisation and an extended repair scope resulting in a higher average repair price. Site transitions have been fully integrated, with the benefits from additional vehicle repair capacity realised. The Motor Repair Services Agreement (MRSA) with Suncorp was updated on April 1, reaffirming the Group’s partnership with Suncorp as it grow its network and endeavoured to deliver the best service possible to Suncorp’s customers.
AMA Collision continued to show improved signs of turnaround with the transitional change program driving significantly improved financial performance in the quarter. All areas of the division improved.
“We are continuing to focus on network optimisation which includes investment in vehicle repair capability, staff and customer experience with existing sites being the highest priority and where we continue to put significant energy,” an AMA Group spokesperson said.
“This is coupled with strategic growth where opportunity, capability and capacity are aligned.”
The Group completed the acquisition of Hondat Smash Repairs in March.
“The acquisition strengthens the Group’s presence on the Gold Coast and further enhances capacity, capability and accessibility for customers in the region,” the spokesperson added.
Wales continues to deliver strong results with both Adelaide and Newcastle sites outperforming business case expectations, with bottlenecks removed to increase productivity. Upgrades to expand the Western Australia site were completed in March.
“Further optimisation opportunities exist within our current network, together with strategic growth opportunities which are being addressed,” the spokesperson said.
Specialist Businesses continued to roll-out TechRight locations.
“The TrackRight transition and expansion is progressing, with the Eagle Farm site transition completed during the period, and new sites opened at Tullamarine and Wangara. The performance of Prestige sites has been impacted by volume allocations, with two of the five locations having underperformed. This is a continued high priority with a range of initiatives to address, which are expected to improve the financial performance of these sites in the next quarter.”
At the end of the quarter, the Group had 460 apprentices and a total of 3,556 team members, representing a net increase of 87 team members from December 31, 2024.
The Group’s Board says it is continuing to review all options with ACM Parts, with a sale being the preferred option. It claims a continued focus on immediate term break even or higher performance will continue to allow time for the right future direction to be decided.
The Group predicts the 2025 financial year to have earnings before tax of between $58m to $62m.