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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.
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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.
 
JohnDe said:
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.
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The problem with the industry is pay for mechanics is far too low. There are mechanics with 5 years experience out there only earning $80,000 per year with many senior mechanics with 10+ years experience earning something like $120,000 per year.

Why do a 4 year apprenticeship and work hard to progress for all those years when you can just work overtime as a traffic controller or forklift driver and earn the same money?

The real solution is the industry needs to increase wages by about 50% to make it an competitive career choice vis a vis other options available. Its one of the clearest examples of a false skills shortage that there is. If they started paying a competitive salary within 5 - 7 years the shortage of mechanics would dissipate completely.

It reminds me of the bakery industry. Plenty of companies complaining about the shortage of qualified bakers yet often they are paying something around $33 per hour for experienced bakers........ Gee I wonder why nobody wants to do a 4 year apprenticeship to become a baker......
 
Value Hunter said:
The problem with the industry is pay for mechanics is far too low. There are mechanics with 5 years experience out there only earning $80,000 per year with many senior mechanics with 10+ years experience earning something like $120,000 per year.

Why do a 4 year apprenticeship and work hard to progress for all those years when you can just work overtime as a traffic controller or forklift driver and earn the same money?

The real solution is the industry needs to increase wages by about 50% to make it an competitive career choice vis a vis other options available. Its one of the clearest examples of a false skills shortage that there is. If they started paying a competitive salary within 5 - 7 years the shortage of mechanics would dissipate completely.

It reminds me of the bakery industry. Plenty of companies complaining about the shortage of qualified bakers yet often they are paying something around $33 per hour for experienced bakers........ Gee I wonder why nobody wants to do a 4 year apprenticeship to become a baker......
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Good mechanics are earning $2000 plus per week plus bonuses.

Average are earning $1100 per
 
JohnDe said:
Good mechanics are earning $2000 plus per week plus bonuses.

Average are earning $1100 per
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You are just repeating what I am saying. $2000 plus per week plus bonuses equates approximately to the $120,000 a year figure I talked about for senior mechanics. As for $1100 per week that is just woeful and many people with no special skills or qualifications are making more than that.

Even $120,000 or $130,000 a year is not enough for someone highly skilled with 10+ years experience who did a 4 year apprenticeship and has to do daily backbreaking and dirty labour. Compare what a good auto mechanic makes to what a good plumber, a good electrician, a good women's hairdresser, a good fridge mechanic etc make and it becomes clear what I am talking about.
 
Value Hunter said:
You are just repeating what I am saying. $2000 plus per week plus bonuses equates approximately to the $120,000 a year figure I talked about for senior mechanics. As for $1100 per week that is just woeful and many people with no special skills or qualifications are making more than that.

Even $120,000 or $130,000 a year is not enough for someone highly skilled with 10+ years experience who did a 4 year apprenticeship and has to do daily backbreaking and dirty labour. Compare what a good auto mechanic makes to what a good plumber, a good electrician, a good women's hairdresser, a good fridge mechanic etc make and it becomes clear what I am talking about.
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Yes, and that’s a good wage. It’s the tax that eats it up.

I know a 25 year old working for the federal government as a lawyer, wage is $110,000. That is the current rate as of today, confirmed with a phone call.
 
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