Former AMA Group CEO to sell company's Bundall HQ

Australia’s largest smash repair group has named two new directors to its board as it as it looks to rebuild in the wake of a leadership exodus. Details here:

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

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The former CEO of smash repairer AMA Group, who has been sued by the company for $2.4m, has put the building that houses its headquarters up for sale.

Perth-based Andrew Hopkins bought 130 Bundall Rd, through a company ultimately owned by him, for $11m in 2019.

The group’s 2020 annual report says it paid Mr Hopkins $457,037 that year to lease the top two floors of the six-level building.

Mr Hopkins, who was on a $1.2m fixed salary plus performance incentives, left the job in January, with AMA announcing its plans to sue him in May.

In a statement to the ASX at the time, AMA Group said it had filed proceedings in the Federal Court against Mr Hopkins, and a company under his control, over about $1 million in unauthorised expenses and a $1.4 million loan which was due for payment.

Mr Hopkins has said he would strenuously defend the case.

130 Bundall Rd, Bundall.

The former CEO is likely to do well from the sale of the commercial building, which is just the second major Gold Coast office building to hit the market in 2021

Other tenants include Gold Coast IT dynamo Insane Technologies, a physiotherapy practice and a strata management company.

Agents Steven King and James Crawford of Colliers Gold Coast have been appointed to market the building, which was formerly the headquarters of collapsed builder Newstart Homes.

“The high-profile building has a net lettable floor area of 3720 sqm, 85 car parks and sits on 2,226 sqm of land directly opposite the City of Gold Coast’s highly acclaimed HOTA precinct,” Mr King said.

“Having been refurbished in 2018, this 1980s building is leased to various high-quality SME tenants.”

James Crawford and Steven King of Colliers.

Mr. Crawford said tenant demand was strong for Bundall with recent Property Council data showing the suburb’s office vacancy down to just 7 per cent.

“130 Bundall is a rare opportunity to buy in the Gold Coast’s best performing office

market for 2021,” he said.

“Having recently marketed a similar office asset at 15 Lake Street, Varsity Lakes which is now under contract, we know interest will be strong from local and interstate private investors and property funds.”

The property is being sold via an ‘offers to purchase’ campaign which closes on August 11.

EARLIER, MAY 18

Australia’s largest smash repair group AMA Group has named two new directors to its board as it looks to rebuild in the wake of a leadership exodus.

AMA announced KPMG veteran Paul Ruiz and former NRMA chairman Kyle Loades would join the company as independent non-executive directors of the company.

AMA chairman Anthony Day said the pair's experience in insurance and automotive sectors would benefit the group.

“A thorough recruitment process aimed at enhancing the diversity of skills and expertise of the Board was undertaken," he said.

"We are confident that the combined experience, expertise and industry knowledge of both Paul and Kyle will add significant value to the Board well into the  future."

In its statement to the ASX, AMA said recruitment of senior executives was "well progressed with two senior appointments made in the last week".

"Further key appointments are progressing and an update will be provided shortly", the company said.

AMA is suing its  former CEO Andrew Hopkins, and a company under his control, for around $2.4 million, which they allege includes about $1 million in unauthorised expenses and a $1.4 million loan which was due for payment.

Mr Hopkins has “categorically denied” allegations made by unknown whistleblowers which lead to an investigation by advisory firm McGrath Nicol and his eventual resignation from the $900,000 a year job. 

Fellow key senior executives, Peter Bubeck and Steve Bubulj have also recently left the company.

AMA said Mr Ruiz  had a 30-year career at KPMG including as a Senior Partner specialising in the insurance and financial services sectors. His expertise lies  in  include insurance and risk management, business start-ups, mergers and acquisitions and capital raisings.

Mr Ruiz is also currently a non-executive director of Dai-ichi Life Australia/TAL Life, Fred Hollows Foundation and its controlled entity Alina Vision. He is also Chair of the Audit Committee for Dai-ichi Life Australia/TAL Life and serves on the Audit & Risk Committee of several NSW Government Organisations.

Former NRMA chairman Mr Loades has 20 years experience in financial services, the automotive, mobility and transport sectors, infrastructure, emergency services and technology.

He adds the AMA role to his current titles as independent chairman of Local Government Super, non-executive director of Credit Union Australia and non-executive chairman of Hunter Medical Research Institute.

 

MAY 7:

AMA Group has turned to the Federal Court in its pursuit of former CEO Andrew Hopkins over $2.4 million in disputed funds.

In a statement to the ASX late on Thursday, AMA Group said it had filed proceedings in the Federal Court against Mr Hopkins, and a company under his control, for the amount, which they allege includes about $1 million in unauthorised expenses and a $1.4 million loan which was due for payment.

Mr Hopkins has “categorically denied” allegations made by unknown whistleblowers which lead to an investigation by advisory firm McGrath Nicol and his eventual resignation from the $900,000 a year job.

AMA engaged restructuring and advisory firm McGrath Nicol for a forensic investigation of the claims, which it said were in response to " a number of whistleblower complaints made with respect to the actions of Mr Hopkins while he was a senior executive with the Company".

Mr Hopkins offloaded his almost 41 million-shareholding in AMA Group for $26.45 million on February 5. The shares had been held by Mr Hopkin’s Western Australia-based company Cedarfield Holdings.

Shares in the Bundall-based company have lost around 30 per cent of their value since the allegations came to light in January, dropping from 74c on January 25 to sit around 50c this week.

AMA appointed non-executive director Carl Bizon as Mr Hopkins’ replacement.

The group reported an $8.6 million statutory half-year loss on February 24.

FEBRUARY 25, 2021:

THE former boss of Australia’s largest smash repair group AMA has cashed in his hefty stake in the company, as it pursues him for more than $2.38 million.

A statement lodged with the ASX on Thursday revealed Andrew Hopkins had offloaded his almost 41 million-share holding in AMA Group for $26.45 million on February 5.

The shares had been held by Mr Hopkin’s Western Australia-based company Cedarfield Holdings.

Shares in AMA dropped 2c to 68c after it reported an $8.6 million statutory half-year loss on Wednesday, and had fallen a further 2c to 66c by 1.45pm Thursday.

The results included revelations AMA was pursuing $1.38 million in company loans from its former CEO, who sensationally left amid allegations of misused company funds.

The loans were in addition to $1 million for which AMA said it had already commenced “formal proceedings” to recover.

Mr Hopkins has “categorically denied” allegations made by an unknown person which lead to an investigation by advisory firm McGrath Nicol and his eventual resignation from the $900,000 a year job.

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