AMA Group is Australia’s largest crash repair business and has 141 outlets in Australia and NZ. It downgraded its profit outlook for 2022-23 on higher inflation and labour shortages.
The shares tumbled by almost 33 per cent in early trading on the ASX on Monday. It is trying to recruit an extra 100 crash repair specialist technicians from overseas, but there are delays in paperwork.
CEO Carl Bizon says he’s disappointed to have to announce the profit downgrade, but margins are being squeezed and there’s no mechanism to quickly adjust pricing with insurers.
The country’s largest smash repairs group has warned labour shortages and high inflation will leave its full-year profit short of earlier forecasts, sending the company’s share price down 35 per cent.
AMA Group operates 141 crash repair sites and seven parts and distribution warehouses. On Monday, chief executive Carl Bizon warned investors that the company’s margins were being squeezed by higher costs.
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Simon Evans writes on business specialising in retail, manufacturing, beverages, mining and M&A. He is based in Adelaide. Connect with Simon on Twitter. Email Simon at simon.evans@afr.com
