AMA Group board and business update

AMA Group Limited (ASX: $AMA) has announced key updates, including the appointment of Brian Austin as the Chair of the Board, Joanne Dawson as Independent Non-Executive Director and Chair of the Audit and Risk Committee, and Ray Smith-Roberts as the Chair of the People Committee. The company also revealed the decision to divest ACM Parts and operate as a portfolio of collision repair focused businesses. Additionally, the FY24 earnings guidance range has been tightened to $44-49 million normalised pre-AASB 16 EBITDA including ACM Parts.

Executive commentary

This is an exciting time for the Group. Our new, leaner Board structure with reduced fees will be a significant cost saving for the Group, while ensuring we have the appropriate skills on the Board. We will also be enhancing our efforts on improving efficiencies within the business. Finally, I welcome Jo to the Board and look forward to her invaluable contributions as a highly experienced Non-Executive Director and Audit and Risk Chair.

Summary of AMA Group announcement

AMA Group has made significant changes to its board structure, including the appointment of key members and the decision to divest ACM Parts. The company aims to operate as a pure collision repair portfolio business and has tightened its FY24 earnings guidance range. Additionally, AMA Group continues to pursue a refinancing of its debt, with an update expected prior to the release of the Group's FY24 results. The strategic plan reflects the company's focus on enhancing efficiencies and cost discipline, while the divestment of ACM Parts marks a new phase for the business. The Group's ambitions and goals are aligned with driving greater cost discipline and achieving its earnings guidance for FY24.