AMA Group has responded to media speculation regarding its capital position following the release of its FY2021 Annual Report last week.
“In response to these reports, and consistent with statements made in the company’s FY2021 results presentation, the group is currently undertaking a capital structure review in order to manage the short-term disruptions associated with COVID-19, as well as to best position for growth. The group may undertake capital markets initiatives in order to enhance balance sheet flexibility, diversity funding sources and extend duration,” AMA said.
“The group’s banking syndicate remain supportive of the business and the directors of the company are confident the current review will yield a positive outcome for the group.
“While the business is experiencing COVID-19 related repair volume decreases, these impacts are being actively managed. With $64 million in cash as at 30 June 2021, and a low level of debt versus normalised earnings (pre-COVID-19 effects), the company’s liquidity position remained strong. The group’s insurer partners remained supportive, and we look forward to returning to normal operations as restrictions ease.”
In its financial results presentation, AMA said it proactively managed the capital structure during FY2021 to reduce leverage and focus on operating performance, with management continuing to undertake tactical cost and cash management initiatives.