Smash repair business AMA Group preps $60m raise

Listed smash repairer AMA Group’s board and advisers were preparing an equity raising of as much as $60 million on Thursday afternoon, while its shares remained halted.

Street Talk understands Melbourne-based AMA had stockbroker Canaccord Genuity working on the mooted raise, and was expected to offer the shares at 8.5¢ each. The deal will launch as early as Friday, sources said.

It comes as AMA’s shares have tumbled nearly 40 per cent this year, prompting long-suffering investors to query whether chief executive Carl Bizon and chair Anthony Day should remain in their roles. Its auditors have raised concerns about its ability to continue as a going concern. Earlier this month it downgraded its earnings guidance.

Current financial year’s underlying earnings before interest, tax, depreciation and amortisation would be between $86 million and $96 million, AMA predicted on August 18. That was down on forecasts given in February of between $120 million and $140 million.

The downgrade was blamed on the new Suncorp pricing, a more conservative outlook for its heavier collision repairs division, and slower than expected ramp up in its parts business