AMA Group has published a list of recent acquisitions on the ASX along with its annual financial results.
In his executive chairman’s address Ray Malone stated “Whilst the past year has been eventful for AMA Group Limited and its shareholders, we finished the financial year with the strongest set of results in the company’s history, demonstrating that our business strategy of pursuing organic and acquisitive growth continues to bring success.
“We continued to focus on consolidating Australia’s vehicle panel repair industry, which accounted for 85% of our business in the past year, while also looking for opportunities to grow our Automotive Component, Accessory and Procurement Business, known as ACAD.”
AMA reported a 33% increase in revenue to more than $509 million, up from $382 million in the previous year and a normalized EBITDA of $52 million, up 27%
Malone reported 26 acquisitions and the opening of four new greenfield sites (although six are listed),.
Malone said that New South Wales had been the main focus where the group now has 22 panel repair shops which he says will play an important part in the group’s revenue growth.
“ In addition to adding to our national network of panel repair shops, which now totals 114, we undertook a major information technology upgrade, rolling out a single national quoting and body shop management software system called iBodyshop, as well as upgrading hardware and cyber security so we can run operations more efficiently,” Malone stated. “We also centralised our finance, HR, IT and fixed operations to a hub in Queensland. We created a National Operations Team for our panel operations so that we have a clear management and reporting structure from the CEO to the shop floor to enable faster decision making and problem solving.
“AMA sees Australia’s vehicle panel repair market in a cycle of evolution as smaller operators continue to decline, following a similar pattern to the US panel repair industry, where they have reduced by 26% over the past decade. Multi-shop operators in the US have increased their revenue share from 9% to 28%, and in Australia we are seeing a similar trend, where multi-shop operators are beginning to increase their market share, which is forecast to reach 31% by FY2021.”
Malone went on to say the group was poised for future growth and aims to capture a ‘significantly larger share of the panel market’ and that AMA would have capacity to ‘generate higher revenues at lower costs, creating an even stronger bottom line.’ Malone stated that the insurance industry ‘continues to move towards larger panel repair companies,’ and AMA was leveraging existing relationships to ‘further build that part of our business.’ He finished by saying that the group is also planning more greenfield sites.
Profit for the group was down just over 12% compared with the previous year.
New acquisitions since 1 July 2017
AAA Accident Repair Centre, Burwood, Victoria on 1 July 2017;
A&A Smash Repairs, Fyshwick, ACT on 14 July 2017;
Griffiths Panel Works, Moorabbin, Victoria on 21 July 2017;
Picken Autobody Repair Centre in North Hobart, Tasmania on 28 July 2017;
Eastern Autobody in Eastern Shore, Tasmania on 28 July 2017;
JPV Smash Repairs in Kogarah, New South Wales on 1 December 2017;
Bunbury City Smash Repairs, Bunbury, Western Australia on 8 December 2017;
Californian Smash Repairs, Botany, New South Wales on 15 December 2017;
Alexander Body Works, Townsville, Queensland on 22 December 2017;
Craig Hall Bodyworks, Phillip, Australian Capital Territory on 5 January 2018;
Bear’s Auto Hospital on 16 February 2018
- Albion Park, New South Wales;
- Bathurst, New South Wales;
- Corrimal, New South Wales;
- Helensburgh, New South Wales
- Orange, New South Wales;
- Wollongong, New South Wales;
Wells Harvey Group of businesses on 30 April 2018.
- Wells Smash Repairs, Arundel, Queensland
- Wells Bodyworks & Towing, Hobart, Tasmania
- H Harvey Collison Repairs, Upper Coomera, Queensland
- H Harvey Prestige, Upper Coomera, Queensland;
- Domroy Prestige Autobody, Moorooka, Queensland.
Mt Druitt Group of Companies on 8 August 2018
- ARM Structural Accident Repairs, Mount Druitt, New South Wales
- ARM Rapid Accident Repairs, Penrith, New South Wales;
- ARM Rapid Accident Repairs, Mount Druitt, New South Wales
- ARM Rapid Accident Repairs, Wetherill, New South Wales
Wells Harvey, Mt Druitt Group, Bunbury City Smash Repairs and Craig Hall Bodyworks were purchased with an “earnout” as part of their acquisition consideration.
The list states that following 'strategic planning and consultation with the Group’s insurer partners, plans are in place to open a number of Greenfield sites. AMA has initially agreed to open the following new sites':
• Albany, New Zealand
These discussions continue with the Group’s insurer partners, who have expressed strong interest for the Group to open further Greenfields. The Group anticipates announcing further new sites in the future.
The following Greenfield sites have opened during the period:
RPM Milperra, NSW
Gemini Prestons, NSW
RPM Mitchell, ACT
Autoco Hume, ACT
RPM Narellan, NSW
Gemini Sunshine, Victoria