Australia’s largest repair company – AMA Group – has reported that a year of change is delivering results, with boosted revenue and a financial sheet that is close to delivering a profit.
Earnings before tax and interest etc were up 125 per cent on 2023 to $49 million, from $894.8 million in revenue also up 6.8 per cent and while there was a net loss of $2.4 million for the financial year, this is vastly improved on 2023’s position of a $146 million loss.
In details released to the ASX, the company revealed it had consolidated and closed some sites bringing the total to 128 collision repair sites, a drop of five and a further eight sites for Wales Heavy Repair
But it was also promoting to investors the success of its overhaul of the Capital Smart business that has added two sites from reopening’s and mergers.
Staff up, repairs down
This has led to 3440 total staff members up 146 on 2023 for the wider group.
The ASX reports also listed the overall number of repairs was down to 238,000 a drop of 16,000 jobs since 2023.
The start-up of specialised business units was also another big step for the company with five TechRight sites now active, five Prestige repairers and two specialist structural repairers for the TrackRight brand, up and running and delivering $44 million in revenue and $2.3 million in earnings.
The announcements also included the company’s intention to sell off ACM Parts along with $46 million in assets of the division. The section is operating from six sites and had record sales withe 220,000 parts sold and revenue of $84.8 million an increase of 5.3 per cent over 2023.
Big Changes
It has been a year of big change at the group including a major overhaul of its board and senior executive, along with plans to sell the ACM Parts section of the business and become a pure crash repair business.
AMA Group Matthew Cooper has delivered his first annual report in the role and spoke about the massive amounts of change since he took over in December.
“The recent years have been difficult, and the organisation has taken some very tough decisions to provide a foundation from which the business can now prosper,” Cooper wrote.
“With my appointment we have adjusted our approach to more humble engagement with our customers, putting their needs first and seeking to solve their problems through exceptional service.
“We have continued to focus on our people, growing our team and providing skills training – both technical through our apprentice and I-CAR gold programs, and leadership through our front-line leaders training.”
“The vehicle collision repair network rationalisation and consolidation is now complete, and the vehicle repair business has a stable platform from which to grow.
“In FY24, repair volume reduced with the full year impact of network consolidation and continued increase in labour hours per repair partially offset by operational efficiencies and increased productive labour.”
AMA Group chair Brian Austin, who only took over the role in June after four members departed the board, was also focussing on the positives of the improved performance.
“The 2024 financial year saw exceptional operational improvement as the Group continues its turnaround,” Austin wrote in his statement.
“The Group delivered a 125.1% increase in normalised pre‑AASB 16 EBITDA in the 2024 financial year compared to the 2023 financial year and saw a net increase of 146 team members. Capital SMART outperformed as did our Wales (Heavy Vehicle) business, Specialist Businesses have been recognised for their unique value and opportunity, an AMA Collision is now building on its foundations.”
The group has listed Operation Wallaby, an overhaul of the AMA Collision part of the business as its first priority.