• AMA Collision Arundel
    AMA Collision Arundel
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In September, AMA Group successfully completed a $55.0 million equity raising. Funds raised will be applied to the principal repayment of $35.0 million of existing senior bank debt and provide liquidity and working capital. 

Execution of refinancing of residual debt facilities is targeted for FY24 with preparations well advanced. The Group had a $71.4 million closing cash balance at 30 September 2023.

AMA Collision

Revenues were broadly in line with the 1Q23 corresponding period, despite a 15% reduction in volumes following network rationalisation activities in FY23, reflecting a combination of repair mix and improved pricing.

AMA Collision is undertaking several projects focused on expanding and enhancing the network.

  • The transition of three teams from the Ashmore, Southport and Nerang sites in Queensland into the new AMA Collision Arundel site was completed in August 2023 with the official opening event in October 2023. 
  • The team at RMA Hallam, Victoria transferred into the previously hibernated RMA site in Dandenong in September.
  • In Townsville, Queensland, the soil has been turned for a greenfield facility which will combine two older facilities into one new AMA Collision facility. This new facility has more than double the combined capacity of the two existing sites.
  • Fit out will soon commence for a new prestige site in Gosford, New South Wales. This site will be branded AMA Prestige and replaces the existing Harris & Adams facility. The site is approximately double the size of the existing facility and is expected to be operational in 3Q24.
  • Plans are underway to reopen the hibernated Craig Hall site in the Australian Capital Territory in 3Q24.
Heavy Motor
  • The Heavy Motor business unit delivered strong revenues through the quarter (up 19% on 1Q23), despite disruptions in the South Australian operations as the All Transport team completed the transition into the new Wales branded facility in Kilburn. This larger site is expected to provide expanded repair capacity and FY24 earnings growth.
ACM Parts
ACM has continued to deliver consistent growth in daily parts sales following the investment in inventory in FY23. Average daily parts sales in 1Q24 (excluding consumables and brokered sales) are up 36% compared to 1Q23 with average daily parts sales to AMA Group repair sites up 62%.

ACM Parts’ Parallel parts import program continues to perform well with average daily sales up by 75%
compared with 1Q23. 
 

Ongoing targeted recruitment activities saw a net increase of 83 team members during the quarter (the second consecutive quarter of strong headcount increases). The total number of apprentices employed across the network was 431, up from 373 at 30 June 2023. Following a successful recruitment campaign in the Philippines, over 100 employment offers will be made shortly. A further 64 international team members remain in the pipeline awaiting visa and relocation.

Despite these results, the Group continues to experience historically high levels of employee turnover which remains a key priority to reduce further to improve productivity and throughput.

AMA Group’s frontline leaders are key to the success of the Group. The focus on developing these leaders continues, with the FY24 Frontline Leaders Program, a tailored leadership course, which commenced in July 2023 and continues into 2H24. Approximately 300 leaders are participating in this series, which includes a program for new leaders and those who have not yet completed the course, and a second program which extends on the first for those who participated in the FY23 series.

FY24 guidance
AMA Group maintains FY24 guidance of $86 - $96 million normalised post-AASB 16 EBITDA ($39 - $49 million normalised pre-AASB 16 EBITDA). Should operational outperformance in 1Q24 persist and/or there be earlier than expected progress on the realisation of identified cost savings opportunities, the Group will revisit the current FY24 guidance range.


 
 
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