Under fire AMA smash repair boss big buyer of stock

THE beleaguered chief executive of AMA Group - Australia’s largest smash repair company - boosted his stake in the company by more than $2m before the board moved to sack him.

THE beleaguered chief executive of AMA Group - Australia’s largest smash repair operator - boosted his stake in the company by more than $2 million two months before the board moved to sack him.

Andrew Hopkins, who has been chief executive since 2015, purchased 3 million shares in the Gold Coast-based company on November 24 at 77.7 cents each, increasing his stake to more than 40 million shares and making him the company’s third-largest shareholder.

British-born Mr Hopkins won an injunction in the Federal Court this week temporarily restraining AMA from dismissing him in relation to an investigation into unspecified “allegations”. Mr Hopkins said the allegations were unfounded and the dispute was related to “a personal falling out between him and the board.” He declined to comment further.

Fellow director Simon Moore, who is believed to have locked horns with Mr Hopkins over the direction of the company, also was an active buyer of the company’s stock, purchasing 1.12m shares on June 5 last year. Mr Moore is the ninth-biggest shareholder of the company with a 4 per cent stake, according to IRESS.

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

Market sources say Mr Moore wants fellow director and former Jayco boss Carl Bizon to step in as interim chief executive if Mr Hopkins departs. Mr Bizon said the matter is currently before the courts, and “further disclosures will be made as and when appropriate.” Mr Moore did not respond to a request for comment.

The rising board tensions come as the company’s 2020 annual report disclosed that businesses connected to directors and key management received millions from AMA last year in the form of rent, legal and other fees.

Property companies, of which Mr Hopkins was a director, received $2.03m in property rental fees and outgoings from the company, according to the report.

Colinton Capital Partners, of which Simon Moore is a senior partner, received $3.15m related to legal and advisory fees while Nicholson Ryan Lawyers, co-founded by director Leath Nicholson, received $1.5m in legal fees. A claims management business linked to Mr Hopkins meanwhile also did business with the company valued at $635,544.

AMA is the largest player in the highly fragmented smash repair business in Australia, holding about 10 per cent of the market. Its revenues have surged from $16.5m in 2010 to $819m in 2020 amid a flurry of acquisitions.

Mr Hopkins was the founder of Perth-based Gemini Group which merged with AMA in 2015. AMA also purchased Suncorp’s Capital SMART in 2019. According to AMA’s annual report Mr Hopkins owes the company $1.34m, a loan inherited when AMA purchased Gemini.

IBISWorld analyst William Chapman said industry revenue had declined since the start of the COVID-19 pandemic as restrictions of movements reduced the number of vehicles on the road, and the number of accidents. AMA reported losses of more than $62m last year.

The group employs more than 1200 staff. AMA shares recovered some ground from a 14.2 per cent decline on Wednesday to close yesterday at 67 cents, a gain of 5.51 per cent.