Bundall’s AMA Group share plunge after statement on CEO Andrew Hopkins in Federal Court case

Shares in one of the Gold Coast’s largest listed companies went into free fall after the board released a startling statement about the group’s chief executive officer.

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

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SHARES in one of the Gold Coast’s largest listed companies have plunged, slashing more than $140 million from its market value, after the board revealed its chief executive had been investigated for unspecified allegations.

Almost 40 million shares traded in a post-announcement fire sale of the panelbeating company, sending the price as low as 55c, down from 74c at close of trade on Monday.

The share price had regained some ground to 63.5c by 5.30pm Wednesday.

In an intriguing statement posted to the ASX, the board said CEO Andrew Hopkins had taken the company to the Federal Court, which had temporarily banned it from sacking him.

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

“In late September 2020, the Board received a protected disclosure from an individual employed by the Company,” the statement said.

“On receipt of these allegations, the company engaged McGrath Nicol to undertake an independent forensic investigation which has recently completed.

“In the evening of 26 January 2021, Mr Hopkins made an urgent application to the Federal Court of Australia alleging that he is being oppressed as a minority shareholder.”

AMA Group has crash repairs contracts with major insurers. Photo: iStock

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AMA said the court had granted Mr Hopkins a temporary order that the company may not dismiss him ahead of hearing on a date which will be fixed for “some time next week”.

“The Company is defending the legal proceedings, and will not comment further on the matter as it is before the courts.”

AMA, a panelbeating giant with contracts with major insurers, was planning to reach $1 billion revenue in 2021 after reporting a net loss of $62.12 million compared to a $21.7 million profit for FY19.

In an update to investors last month, it also announced the $70 million sell-off of its aftermarket businesses (excluding ACM Auto Parks and Fluiddrive) to GUD Holdings Ltd.

The company said 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.

The company is due to report its first half results to the market next month.

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