AMA Group has announced its third capital raise since 2021. The previous equity raise was in September 2023, when the group raised $55.0 million at 7.5 cents per share.
In September 2021, after the business was severely impacted by COVID shutdowns, the Group raised $100 million at 37.5 cents per share through an entitlement offer, and $50 million through convertible notes.
The current undertaking is fully underwritten and will raise $125.0 million and the number of shares will increase to over 4 billion. Existing syndicated debt facilities are extended to 31 December 2025. Funds raised under the equity raising will be used to repay $50 million of existing senior bank debt with an additional $50 million to be held in a locked account to settle expected redemptions on the convertible note put option (expected in March 2025).
Improved finances
The steady improvement of the Group’s finances operational performance has continued. Its unaudited normalised FY24 pre-AASB 16 EBITDA of $49.0 million (excluding ACM Parts), up 125.1% on FY23.
Capital S.M.A.R.T has exceeded expectations and Wales heavy vehicle repair continues to do well. AMA Group has prepared a detailed investor equity raising prospectus presentation detailing recent network improvement and plans for the future. You can read the presentation here.
AMA Group ended 4Q24 with a cash balance of $39.9 million and unused available finance facilities (undrawn bank guarantees) of $1.4 million. An operating cash inflow of $19.5 million was recorded for the quarter. Receipts from customers (inclusive of GST) in FY24 year to date was just over a billion dollars.