AMA Group provided investors with an optimistic update on recent developments for the group, which saw shares in the leader in the Australian and New Zealand panel repairer advancing over 10% on Wednesday.
AMA told investors that the resumption of more traditional, pre-Covid driving customs, the popularity of domestic drive holidays, as well as the reluctance of many people to use public transport, in addition to the sustained periods of wet weather in the region during March and April, meant that vehicle volumes into workshops in recent months has continued to improve.
In addition, the reform and transformation of many of the group’s activities had occurred under the leadership of Carl Bizon, who was appointed to the role of CEO in February this year. AMA continues to expand its operations in the region, along with bolstering its senior management team and board recently.
Operationally, vehicle volumes are near pre-Covid levels and are expected to continue to improve and act as a tailwind into the new financial year. The business continues to benefit from increased use of private vehicles compared to public transport and an increase in domestic drive holidays.
As is being experienced in many industries, the business is managing the headwinds of a current skilled labour shortfall being experienced, primarily as a result of international border closures and part supply and pricing issues. Although, encouragingly parts supply is showing signs of returning to normal frequency which has improved volume throughput.
Financial, AMA is tracking in line with returning volume and current trading expectations, and has access to financial resources to undertake acquisition opportunities that are strategically aligned with the growth and development of the business.
AMA Group CEO Carl Bizon said “It’s pleasing to see vehicle volume returning to normal. The efforts of our team members and their focus on achieving great outcomes for our customers has enabled the Group to maintain strong momentum post Covid, and with the management changes currently underway, places us in a strong position to capitalise on opportunities for growth as these arise”.