AMA Group managing director and CEO Andrew Hopkins granted payrise to $1.2m with millions more in potential incentives

The boss of a Bundall-based automotive group has been granted a massive pay rise as the company looks to raise more than $200m to buy a suite of smash repair businesses.

AMA Group managing director and CEO Andrew Hopkins. Photo: Supplied

THE boss of Bundall-based listed auto outfit AMA Group has been granted a healthy pay rise as the company embarks on its second phase of raises funds to buy Suncorp’s smash repair and parts businesses for $440 million.

In an announcement to the market, AMA said managing director and CEO Andrew Hopkins had signed a new employment agreement that would see his fixed pay rise from $900,000 to $1.2 million.

He had previously been employed as a consultant to the company.

The contract also includes short-term incentive opportunities worth another $600,000 and potential long-term incentives worth 150 per cent of his fixed pay over three years.

The incentives depend on the company reaching specific earnings-per-share growth and shareholder return targets.

Mr Hopkins was also granted $900,000 in long-term performance rights as a one-off for the 2019 financial year.

AMA, an automotive after-care group which has panel shops, accessories and other after-care businesses in its portfolio, relocated to Bundall earlier this year.

It reported a 43.7 per cent profit increase after an acquisition spree last financial year when it spent $37.5 million acquiring 21 existing businesses and launched four new ones — all supported by contracts with vehicle insurers.

AMA Group managing director and CEO Andrew Hopkins. Photo: LinkedIn

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Mr Hopkins founded the Gemini Group in Perth a decade ago, and it was acquired by AMA in 2015.

He is also owner and director of Aqua Resort in Margaret River.

Suncorp last week announced it had agreed to sell its Capital SMART Group vehicle repairs network to AMA for $420 million.

It said it had also agreed to sell AMA its ACM Parts business for $20 million cash and had entered a minimum 15-year strategic partnership to continue sending its insurance jobs to the repairs businesses.

AMA is funding the purchase with new debt and a $216 million equity raising exercise, which would result in the issuing of about 188 million new shares at an offer price of $1.15 per share.

The retail component of the offer opened on Tuesday, with the oversubscribed institutional tranche due to settle tomorrow.