29 Aug 2016
AMA is Australia’s leading panel repair business with 63 sites nationally.
- Defensive Business – Despite technology advances, vehicles crash, hail storms occur and AMA will continue to earn revenue from accident repairs. Total industry growth in the past 5 years has been 1%*.
- Blue Chip Clients – The major auto insurers – IAG and Suncorp – pay for the majority of car repairs. And they prefer to be riding along with a corporatised and transparent ASX listed public company. AMA is the only listed player in this $7bn industry*.
- Leading Market Share and Ongoing Industry Consolidation – AMA had been a speedy acquirer, having integrated 8 significant panel repair businesses in the past 2 years. With over 1,000 businesses operating in this sector, the chequered flag will not be waved for a number of years. AMA generated $200m in panel repair work in 2016, so the race remains in its early stages.
- Proven Management – Ray Malone has been in the driver’s seat with the pedal to the metal for over 7 years, accelerating the market cap from $20m to over $450m.
- Earnings are Cruising – Normalised EPS in the year to June 16 increased 33% and the dividend has increased by 30%.
*Source: IBIS World