Australian (ASX) Stock Market Forum

AMA - AMA Group

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AMA plagued by internal shenanigans looks promising, provided the internal strife has ended (doubtful).

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“It has certainly been a good trading period for the last three or four months”
- Carl Bizon, CEO, AMA Group Ltd
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AMA Group launched a $55.0 million equity raising via:
‐ Fully underwritten Institutional Placement to institutional investors and certain AMA Group directors to raise $17.6 million ($2.5 million of which will be subject to shareholder approval given AMA Group director participation); and
‐ Fully underwritten 1 for 2.15 pro rata accelerated non-renounceable entitlement offer to raise approximately $37.4 million

.. announced on 07 September 2023.
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Funds raised under the Equity Raising will be applied to the principal repayment of $35.0 million of existing senior bank debt and provide liquidity and working capital which will be deployed in pursuit of the Group’s strategy.

All New Shares offered under the Equity Raising will be issued at a price of A$0.075 per New Share.
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holders happy?
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JohnDe said:
What has caused the SP to slowly increase?
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The only 2 recent events are the capital raise to pay off some debt and for working capital (never a good sign as this does nothing to improve the productivity of the business), and the directors and Thorney buying shares. Otherwise business (and losses) as normal.
 
Dousing the spark, before a bushfire starts.

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AMA Group Limited (ASX: AMA) (AMA Group, the Group) today responds to media speculation in the Australian
Financial Review.
The Group refers to previous disclosures that it is progressing its debt refinancing and expects to finalise the
new arrangements through 2H24. The Group is currently considering a range of refinancing structures. These
options do not include an asset sale.
AMA Group will continue to update the market in accordance with its continuous disclosure obligations.
This announcement has been authorised by the Chair of AMA Group Limited.
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My penny stock may be on the right track, the next 6 months will tell all.

My initial purchase was 6c March last year, knowing that the crash industry is a fickle industry. I have friend's in the industry, and all the good repairs are 6 to 12 months booked solid. If the industry can increase the number of qualified workers, they should be able to turn over work faster and increase profits. Following the trade industry representatives and schools, I see that they have been able to change the opinions of parents directing their kids into Uni degrees and steering them towards trades.

1Q25 Quarterly Business Update
  • Successfully completed $125 million fully underwritten equity raise. 
  • Unaudited normalised1 1Q25 pre-AASB 16 EBITDA of $14.8 million. On a normalised basis, unaudited 1Q25 pre-AASB 16 EBITDA up 8.8% from 1Q24 ($13.6 million). 
  • Operating cash inflow for 1Q25 of $0.8 million after all lease costs, an improvement of $7.5 million from 1Q24. Recapitalisation of the balance sheet has led to improved credit terms with suppliers, with the benefits expected to be fully realised over the remainder of the financial year.




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Good pickup @JohnDe I have always seen it as a minnow, even though it is in a growing industry and a very labour intensive.

JohnDe said:
Following the trade industry representatives and schools, I see that they have been able to change the opinions of parents directing their kids into Uni degrees and steering them towards trades.
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That bit is interesting. In 1984 an associate and I started a not for profit group training scheme. Even though it became the third largest in Australia after the third year of operation, the main hurdle to growth was the attitude of the patents and schools.

Parents wanted little Johnny to work in the bank instead of getting his hands dirty and schools considered trades as a lower education standard and pushed for uni instead.

Glad to hear it has changed at last. Probably helped by the high wages earned by trades without the HECS debt.
 
Country Lad said:
Good pickup @JohnDe I have always seen it as a minnow, even though it is in a growing industry and a very labour intensive.



That bit is interesting. In 1984 an associate and I started a not for profit group training scheme. Even though it became the third largest in Australia after the third year of operation, the main hurdle to growth was the attitude of the patents and schools.

Parents wanted little Johnny to work in the bank instead of getting his hands dirty and schools considered trades as a lower education standard and pushed for uni instead.

Glad to hear it has changed at last. Probably helped by the high wages earned by trades without the HECS debt.
Click to expand...

Yes, the higher wages has helped get the numbers signing up, but the drop out rate was very high. I have been told that the current increase in numbers has been due to the implementation of mentors. The MTA (motor trades association), in certain states, has qualified mentors who’s sole responsibility is to assist apprentices in any situation, work stress, accommodation, peer pressure, learning difficulties, relocation, etc. They start by going into schools at year 10 & 11 & 12, talking and including the trade training as part of the curriculum for the kids interested. I can’t remember the exact figures but it was close to a 70% increase in retention rate of apprentices finishing and staying in the trade.
 
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