Gold Coast-based AMA Group reports 43.7 per cent profit increase after acquisition spree
A $700m listed automotive company which relocated to the Gold Coast last month has reported its best ever results, logging a massive increase in profit.
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THE Gold Coast’s newest listed company, automotive operator AMA Group, has reported its best ever results, logging a 43.7 per cent increase in full-year net profit to $21.7 million off the back of 20.9 per cent increase in revenue to $616 million.
AMA, which operates vehicle panel repair shops, accessories and other aftercare businesses, increased earnings before interest, tax, depreciation, amortisation and impairments by 14.9 per cent to $50.1 million for the 12 months to June 30.
The group, which has 130 panel repair shops nationally and relocated from Brisbane to Bundall earlier this year, spent $37.5 million acquiring 21 existing businesses and launched four new ones in the financial year — all supported by contracts with vehicle insurers.
Last month the company announced it had entered a five-year supply agreement with RACQ, which would result in the construction of two new panel division sites.
It expanded its panel repair operations into heavy vehicles during the financial year by taking on six businesses in that sector and also logged increased earnings in its automotive components and accessories divisions.
AMA Group, which moved its corporate headquarters and panel support division into a Bundall office building bought by its CEO for $11 million, will pay shareholders a franked final dividend of 2.25c, following up the interim dividend of 5c paid in May.
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In the company’s full-year results and annual report, AMA said the company was pursuing new acquisitions and greenfield opportunities and hoped to top $1 billion revenue by 2021, despite “challenging” economic and market conditions.
Shares in AMA increased 36.8 per cent from $1.045 to $1.43 over the reporting year, but were down 5.39 per cent in today’s trade from $1.39 to $1.31 at market close.
The Bundall office sale, which settled in July, was to a company controlled by AMA chief executive Andrew Hopkins, a 52-year-old Englishman based in Perth.
AMA has evolved out of company Allomark, which joined the ASX in 2006.
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