Page 15 - Australasian Paint & Panel magazine

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• The reporting for divisions shows improvement across the board from last year’s COVID impacted reporting period.
THE GROUP REPORTS IT NOW HAS 132 VEHICLE COLLISION REPAIR SITES WITH FIVE IN HIBERNATION. IT NOTES:
• Fixed price contracts under continual review to address im-
pacts of high inflationary environment
• Volume disruption as negotiations continued
• Repair volumes down 4%
• 2H23 will see the return of two customers who reduced vol-
umes through 1H23 with whom the Group has now reached
satisfactory commercial terms
• Network rationalisation to align labour and profitable work
provision
• Highly competitive labour market
• Apprentice investment continues – 349 active apprentices as
at 31 December 2022
• Overseas talent acquisition focus – over 100 in pipeline
• Available capacity now largely utilised, with focus on grow-
ing labour pool to increase capacity.
In the report the auditors made the following statement regarding AMA Group as a going concern. “As of 31 December 2022, the Group had current liabilities exceeding current assets by $32,937,00.
“In FY2024 debt covenants revert back to previous covenants and while they expect to be achieved, the Group notes that there is continued uncertainty in a number of factors that will influence meeting these from 1 July 2023, including but not limited to commercial negotiation outcomes, labour availabili- ty, cost inflation and parts availability that may impact the Group’s ability to satisfy these FY24 covenants.
“Management has taken a number of actions during the pe- riod to improve future profitability and is also potentially able to undertake actions such as raising equity, securing addition- al financing, restricting operations or the sale of assets to as- sist in meeting of revised covenants if required.
“While the Group’s path to expected profitability and ongo- ing compliance with covenant requirements is inherently un- certain and so may cast significant doubt upon the Group’s ability to continue as a going concern, management believes that the range of action available to it means that the uncertain- ty is being managed. In the event the Group does not achieve the above outline initiatives, it may not be able to continue its operations as a going concern and therefore may not be able to realise its assets and extinguish its liabilities in the ordinary
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course of operations and the amounts nancial report.
stated in the interim fi-
Pre-AASB 16 EBITDA
Segment ($000s)
Vehicle Collision Repairs
Heavy Motor Supply
Corporate/ Eliminations
Total Group
HY2023 HY2022
372,652 357,564
31,741 27,842 40,556 42,698
(18,709) (10,042)
426,240 418,062
Change
HY2023 HY2022
Change
19,446
(227) 3,835
3,558
26,612
Revenue and other income
15,088 1,063
3,899 3,311 (2,142) (11)
(15,484)
3,538 (3,846)
(8,667)
8,178
(3,823) (7,381)
540 (23,173)
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