AMA Group: Bundall-based panel beater giant offloads aftermarket businesses - uses $70m to pay down debt
The Bundall-based panel beater giant says it is well placed to reach growth and performance targets.
Business
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THIS is the year when Bundall-based panel beater giant AMA Group plans to reach the magic $1 billion in revenue.
The business, led by CEO Andy Hopkins, had a tough 2020 with covid dealing a hit to repair volumes and the company reporting a net loss of $62.12 million compared to a $21.7 million profit for FY19.
However, in a December 31 update to the market AMA said a strong performance for the first quarter has continued into the second with shops in all states except Victoria fully operational.
AMA said it expects Victoria to open up this month and provided charts showing slight increases in the proportion of people choosing to use private transportation in December in Sydney and Perth while public transport registered double digit declines.
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This is important because if there are less people driving on the roads, there are less accidents and therefore less work for panel beaters.
Mr Hopkins told the ASX that its managements of costs and revised contracts are expected to deliver pretax margins within its target of 9 and 10 per cent for the year.
He said the turnaround in repair volumes had been faster than expected following the lifting of covid-related restrictions.
“The business is well placed to pursue strategic aligned acquisitions in H2 FY21 aimed at delivering its growth and performance targets for FY21 and beyond.”
In the same announcement AMA said it has offloaded its aftermarket businesses (excluding ACM Auto Parks and Fluiddrive) to GUD Holdings Ltd for $70 million.
The proceeds would be used to pay down its debt resulting in a net debt position of $158 million as of December 31, 2020.
AMA reported revenue of $888 million in the past financial year.
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