AMA Group provided Q3 activities report

AMA Group Limited (ASX: AMA) has released its Appendix 4C Quarterly Cash Flow and Activities Report for Q3 2023. The company's FY23 guidance has been updated to between AU$60 million and AU$68 million in normalized post-AASB 16 EBITDA, compared to its previous guidance of AU$70 million to AU$90 million. This is due to ongoing margin compression that has been more adverse than expected, which has impacted the strong repair volume demand.

Lateral hiring activity has been elevated as industry participants attempt to fill vacancies from a limited labor pool, leading to higher employee costs per hour and operational disruption. The report states that many industry contracts still lack appropriate dynamic adjustment mechanisms to insulate parties from external pressures such as inflation or increasing repair severity. Despite these challenges, the Group remains confident in its ability to achieve long-term success, and has undertaken extensive future-focused activities, such as international recruitment, an industry-leading apprenticeship program, and enhanced employee satisfaction.

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