AMA Group: Growth story remains intact

AMA operates a chain of collision repair centres and services workshops for brakes and transmissions. It is also a manufacturer and wholesale distributor of alloy vehicle protection equipment, automotive and electrical accessories. AMA has a strong track record for identifying and acquiring high-quality businesses and integrating them successfully. Supporting this, the vehicle repair industry is highly fragmented, with lots of scope for further growth through acquisition. AMA’s FY16 results exceeded guidance, with normalised EBITDA of $31.9m (guidance $28-29m). Net profit before tax rose 8.4% to $13.5m, or on a normalised basis, it rose 90.4% to $23.7m. We’re a little frustrated with the share price performance, but the results confirmed that the growth story is still very much in place, with the benefits and synergies of previous acquisitions being greater than management had previously estimated, while additional opportunities are actively considered. For our full thoughts on AMA Group read the article here: (VIEW LINK)