Half-year results: Shares in Bundall-based AMA dive after steep fall in half-year profit

Gold Coast-based panel beater owner AMA Group has had a shocking morning on the stockmarket following disappointing first-half results.

MORE than $130 million has been wiped off the market capitalisation of Bundall-based AMA Group following disappointing half-year results released this morning.

The panel beater consolidator, which has 188 workshops across Australia, reported a net loss of $11.003 million for the half on revenue of $396 million – 32 per cent higher than the previous period.

Normalised pretax earnings fell 22.7 per cent to $21.7 million.

Investors punished the stock sending shares down 23 per cent or 18c in intraday trading to 60c and wiping $131 million off the company’s market capitalisation.

AMA Group has a 15 per cent share of panel beaters in Australia. Photo: iStock

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AMA said the result was impacted by $8.5 million in costs associated with buying Capital SMART and ACM Parts and the unsuccessful purchase of Horizon Global.

The company said the adoption of new accounting standards had also hit net profit by $3.6 million.

Revenue growth was driven by acquisitions including Capital SMART, which was purchased from Suncorp Insurance Ventures in October last year.

AMA said pretax earnings were effected by reduced volumes of work due to extended dry weather and repair prices remaining constant while costs increased.

The company said its focus remains on growing its share of the $6 billion vehicle repairs market with 15 per cent of the sector currently under the AMA umbrella.

It said it would do this by expanding greenfield opportunities in Australia and internationally, executing strategic acquisitions and realising synergies across the group.

AMA has an ambition to join the ASX200 and reach $1 billion in revenue by 2021.