Page 34 - Australasian Paint & Panel Magazine Sep-Oct 2018

IN DEPTH AMA GROUP
AMA LOOKS TO INCREASE MARKET SHARE
AMA Group has published a list of recent acquisitions on the ASX along with its annual financial results.
IN HIS EXECUTIVE chairman’s address Ray Malone stated “Whilst the past year has been eventful for AMA Group Limited and its shareholders, we finished the financial year with the strongest set of results in the company’s history, demonstrating that our business strategy of pursuing organic and acquisitive growth continues to bring success.”
AMA reported a 33% increase in revenue to more than $509 million, up from $382 million in the previous year and a normalized EBITDA of $52 million, up 27%. Profit for the group was down just over 12% compared with the previous year. Malone reported 26 acquisitions and the opening of four new greenfield sites (although six are listed),.
Malone said that New South Wales had been the main focus where the group now has 22 shops which he says will play an important part in the group’s revenue growth.
“In addition to adding to our national network of panel repair shops, which now totals 114, we undertook a major information technology upgrade, rolling out a single national quoting and body shop management software system called iBodyshop, as well as upgrading hardware and cyber security so we can run operations more efficiently,” Malone stated. “We also centralised our finance, HR, IT and fixed operations to a hub in Queensland.
“AMA sees Australia’s vehicle panel repair market in a cycle of evolution as smaller operators continue to decline, following a similar pattern to the US panel repair industry, where they have reduced by 26% over the past decade. Multi-shop operators in the US have increased their revenue share from 9% to 28%, and in Australia we are seeing a similar trend, where multi-shop operators are beginning to increase their market share, which is forecast to reach 31% by FY2021.”
Malone went on to say the group was poised for future growth and aims to capture a ‘significantly larger share of the panel market’ and that AMA would have capacity to ‘generate higher revenues at lower costs, creating an even stronger bottom line.’ Malone stated that the insurance industry ‘continues to move towards larger panel repair companies,’ and AMA was leveraging existing relationships to ‘further build that part of our business.’
34 PAINT&PANEL September / October 2018
NEW ACQUISITIONS
AAA Accident Repair Centre
Burwood, Victoria
A&A Smash Repairs,
Fyshwick, ACT
Griffiths Panel Works
Moorabbin, Victoria
Picken Autobody Repair Centre North Hobart, TAS Eastern Autobody Eastern Shore TAS
JPV Smash Repairs
Kogarah, NSW
Bunbury City Smash Repairs
Bunbury, WA
Californian Smash Repairs,
Botany, NSW
Alexander Body Works,
Townsville, QLD
Craig Hall Bodyworks,
Phillip, ACT
Bear’s Auto Hospital
Albion Park, NSW Bathurst, NSW Corrimal, NSW Helensburgh, NSW Orange, NSW Wollongong, NSW Wells Harvey Group Wells Smash Repairs, Arundel, QLD
Wells Bodyworks & Towing, Hobart, TAS
H Harvey Collison Repairs
Upper Coomera, QLD
H Harvey Prestige, Upper Coomera, QLD;
Domroy Prestige Autobody, Moorooka, QLD
Mt Druitt Group
ARM Accident Repairs, Mount Druitt, NSW
ARM Rapid Accident Repairs, Penrith, NSW
ARM Rapid Accident Repairs, Mount Druitt, NSW
ARM Rapid Accident Repairs, Wetherill Park, NSW
Wells Harvey, Mt Druitt Group, Bunbury City Smash Repairs and Craig Hall Bodyworks were purchased with an ‘earnout’ as part of their acquisition consideration.
The following Greenfield sites have opened during the period with plans for more in the near future:
RPM Milperra, NSW Gemini Prestons, NSW RPM Mitchell, ACT
Autoco Hume, ACT
RPM Narellan, NSW Gemini Sunshine, Victoria
H Harvey Prestige, a sumptuous shop, complete with swimming pool, is one of many recent AMA purchases.
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