AMA Group has told shareholders at its 2022 annual general meeting that its financial fortunes are expected to improve in 2023 but acknowledged the first six months will be “bumpy”.
After posting a $148 million net loss for financial year 2022, AMA Chair Anthony Day expressed disappointment that “it was not the year AMA had hoped for”, but there was light at the end of the tunnel.
“Like many of our stakeholders, we are frustrated by the impact that the external environment continued to have on the company’s operations,” said Day. “However, we have a clear pathway, focused on prioritising delivering margin expansion rather than absolute site numbers, repair volumes, and revenue.
“We have already flagged FY2023 as a transition year, but I am pleased to note that we have taken several actions to progress our stated strategy and can already see the early fruits of these actions that will realise the true value of the AMA Group.”
Day said that with “a plan in place and well underway – with a new contract pricing cadence and network optimisation”, the company is well-positioned for the future. “We are starting to see the green shoots of the immense amount of work undertaken to-date. The team have made tough decisions and focussed on long term margin improvement as we earn the right to grow,” he added.
While also optimistic, Carl Bizon, CEO of AMA Group, said FY2023 is expected to have “a bumpy first half as we navigate and implement repricing and network optimisation”.
According to Bizon, AMA’s key operational priorities in FY2023 are to progress the parts and procurement strategy, revenue growth and diversification, and the pursuit of ADAS opportunities. Further, AMA will continue to embed adjustments to organisational structure, network optimisation, and contract pricing. The company will also continue work on strategic priorities of retention and engagement, operational improvements, organic and acquisition growth, and the “workforce of the future”.
AMA Group confirmed post-AASB 16 EBITDA guidance of $70 million to $90 million for FY2023, and $120 million to $140 million for FY2024.