Page 6 - Australian Paint & Panel Magazine May-June 2019
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08 New group in WA • 10 I-CAR updates • 12 AR repair methods
ARM is part of Mount Druitt Autobody Repairs which adds another three sites to AMA Group.
The consortium has hired Allier Capi- tal to help with the due diligence.
However the Vais/Quadrant pairing is expected to face stiff competition from other trade and private equity players. Quadrant is also believed to be in the market for Right2Drive when in comes onto the market.
Capital S.M.A.R.T is expected to come to market with long-term agreements with Suncorp, which should shelter the company's revenue and earnings for at least the medium term.
column has reported that Suncorp has formally hired boutique firm Luminis Partners to oversee a strategic review for Capital.S.M.A.R.T, which will consider a number of options including selling a majority stake to an offshore acquirer.
An internal memo flagging the strate- gic review was circulated to Capital S.M.A.R.T staff in March according to Street Talk.
Suncorp is reported to be seeking a sale multiple of at least 10 times earn- ings, which would equate to more than $300 million.
Capital S.M.A.R.T repairs vehicles for Suncorp and potential buyers are likely to focus on opportunities of opening up the network to third party customers and potential merger and acquisition opportunities.
While AMA Group has 7.2 per cent market share according to IBIS World , Capital S.M.A.R.T has 4 per cent to 5 per cent of the motor vehicle body, paint and interior repairs market.
One potential buyer is Capital S.M.A.R.T founder Jim Vais, who is working on a bid with Sydney-based buyout firm Quadrant Private Equity.
ing, AMA believes that its continued ap- plication of key management strategies combined with its acquisition strategy will continue to boost future earnings.
"The board believe that there are still substantial growth opportunities pre- senting to our key business divisions. The consolidation of the Vehicle Panel Repair industry will continue and man- agement are actively seeking new green- field” sites.
The acquisition of further busi- nesses will provide further scale to our operations."
The results follow news at the end of last year about major new investors in the group including Myer Family Invest- ments and AustralianSuper.
sults from the financial half
year which ended on 31 De- cember 2018.
Profit before tax was up from $12,272,000 in the same period last year to $15,346,000. Acquisitions report- ed were the Accident Repair Manage- ment Group in Sydney which included Mount Druitt Auto Body Repairs and Northern Smash Repairs. It also report- ed opening two greenfield sites and that
the network now consists of 118 shops.
The report said that while the market was challenging, the results were in line with the directors' expectations which show a substantial increase in the group's operating result.
Reported earnings before interest, tax, depreciation and amortisation (EBITDA) has increased from $20.6 million to $24.3 million; a 17.77 % increase. The report stated:
"Whilst the economic outlook and market conditions across some business segments are likely to remain challeng-

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