SGX Announcement
29 October 2021
1Q22 Quarterly Cash Flow and Activities Report
Attached is an announcement made by AMA Group Limited (ASX: AMA) (AMA Group) which is provided for the information of AMA Group Noteholders.
AMA Group has Notes listed on the Singapore Exchange.
ENDS.
Investors and Media:
Alexandra Holston, Director Investor Relations and Corporate Affairs
- alexandra.holston@amagroupltd.comM: +61 418 312 837
AMA Group Limited
130 Bundall Road, Bundall QLD 4217 ABN 50 113 883 560 (07) 5628 3272 info@amagroupltd.com amagroupltd.com
ASX Announcement
29 October 2021
1Q22 Quarterly Cash Flow and Activities Report
AMA Group Limited (ASX: AMA) (AMA Group) today provides its Appendix 4C Quarterly Cash Flow and Activities Report for the quarter ended 30 September 2021 (1Q22) (unaudited).
Highlights
- Capital raising completed
- Enhanced banking structure including repayment of $72.5 million of bank debt
- Ongoing impacts of COVID-19 related restrictions leading to reduced repair volumes in New South Wales and Victoria
- Total available funding of $71 million
Capital raising and enhanced banking structure update
During 1Q22, AMA Group successfully completed an accelerated 1 for 2.80 pro rata non- renounceable entitlement offer (Entitlement Offer) and a $50 million senior unsecured convertible notes offer (Convertible Notes Offer).
The Institutional Entitlement Offer raised gross proceeds of approximately $53 million at the offer price of $0.375 per new Ordinary Share. The Institutional Entitlement Offer attracted significant demand and was well supported by institutional shareholders with a take-up of approximately 99.6% of eligible shareholders.
The Retail Entitlement Offer raised approximately $46 million at the offer price of $0.375 per new Ordinary Share. The Retail Entitlement Offer was well supported with an overall take up rate of approximately 62% including applications by eligible retail shareholders for additional shares in excess of their entitlements.
AMA Group also successfully priced $50 million of Subordinated Notes which are convertible into Ordinary Shares and will mature in March 2027 unless otherwise redeemed, repurchased or converted earlier in accordance with their terms and conditions.
AMA Group was pleased with the support for both the Entitlement and Convertible Notes Offers and positive feedback to management with respect to its strategy for the business. $72.5 million of the proceeds were used to permanently repay a portion of AMA Group's debt during the period. Approximately $46 million relating to the Retail Entitlement Offer was received after quarter end and is not reflected in the attached Appendix 4C.
Business update
The business was significantly COVID-19 affected during 1Q22, with lockdowns in New South Wales and Victoria continuing to be reflected in depressed repair volumes. As at mid-October 2021, weekly national averages for Drive and Non-Drive show ~41% and ~20% unutilised booking capacity, respectively. In New South Wales, Drive and Non-Drive show ~47% and ~60% in unutilised capacity, respectively. In Victoria, Drive and Non-Drive show ~53% and ~35% in unutilised capacity, respectively.
AMA Group Limited
130 Bundall Road, Bundall QLD 4217 ABN 50 113 883 560 (07) 5628 3272 info@amagroupltd.com amagroupltd.com
Payments to related parties
Reflective of the significant opportunities available to the business, AMA Group has engaged with Leath Nicholson's firm, Nicholson Ryan Lawyers, to retain his services as the outsourced General Counsel for AMA Group. Given this appointment, Leath Nicholson, currently a Non-Executive Director will step off the AMA Group Board at the 2021 AGM.
During 1Q22, approximately $333,000 of legal and advisory fees were paid to Nicholson Ryan Lawyers, a significant portion of which related to the capital raising activities. The full amount is reflected in the attached Appendix 4C.
Summary of cash position
AMA Group ended 1Q22 with a cash balance of approximately $63 million, and unused finance facilities of approximately $8 million. Based on approximately $13 million net cash used in operating activities in 1Q22, the total available funding of $71 million provides an estimated six quarters of funding available at September period end as disclosed in the attached Appendix 4C. We note that the estimate of available funding is based on continued financial performance at the reduced repair volumes under New South Wales and Victorian lockdowns experienced during 1Q22. We also note that the total available funding of $71 million does not include the receipt of $46 million related to the Retail Entitlement Offer after quarter end.
Activities after the end of the quarter
AMA Group's 2021 Annual General Meeting (AGM) is scheduled for 18 November 2021 at 2:30pm (AEDT) and will be held virtually. Further details of the AGM can be found in the ASX announcement dated 15 October 2021.
COVID-19
AMA Group believes it is well placed for the future, with COVID-19 restrictions easing programs commencing in New South Wales and Victoria in the current quarter. Apple mobility trends data for Sydney shows increased private vehicular mobility as their recent lockdown restrictions began to ease, and, consistent with our experience in 2020 post the easing of lockdowns, this increased mobility is expected to drive increased repair volumes in the near future.
Apple mobility trends, Sydney (13 January 2020 = 100)
180
160
140
120
100
80
60
40
20
0
13 Jan 20 | 13 Feb 20 | 13 Mar 20 | 13 Apr 20 | 13 May 20 | 13 Jun 20 | 13 Jul 20 | 13 Aug 20 | 13 Sep 20 | 13 Oct 20 | 13 Nov 20 | 13 Dec 20 | 13 Jan 21 | 13 Feb 21 | 13 Mar 21 | 13 Apr 21 | 13 May 21 | 13 Jun 21 | 13 Jul 21 | 13 Aug 21 | 13 Sep 21 | 13 Oct 21 |
Driving | Transit | Walking |
Source: Apple
2
AMA Group CEO, Carl Bizon said:
"We look forward to the future with confidence. As the impacts of COVID-19 restrictions continue to lift, we can turn our focus to the execution of our strategy which will unlock the value inherent in AMA Group."
Other than these matters there were no other material developments or material changes in business activities during the 1Q22 quarter.
This announcement has been authorised by the Board of AMA Group Limited.
ENDS.
Investors and Media:
Alexandra Holston, Director Investor Relations and Corporate Affairs
- alexandra.holston@amagroupltd.comM: +61 418 312 837
3
Appendix 4C
Quarterly cash flow report for entities
subject to Listing Rule 4.7B
Name of entity
AMA GROUP LIMITED
ABN | Quarter ended ("current quarter") |
50 113 883 560 | 30-Sep-21 |
Consolidated statement of cash flows | Current quarter | Year to date | ||
(3 months) | ||||
1 Cash flows from operating activities | $A'000 | $A'000 | ||
1.1 | Receipts from customers (inclusive of GST) | 252,377 | 252,377 | |
1.2 | Payments for to suppliers and employees (inclusive of GST) | (256,039) | (256,039) | |
(a) | research and development | 0 | 0 | |
(b) | product manufacturing and operating costs | (189,042) | (189,042) | |
(c) | advertising and marketing | (55) | (55) | |
(d) | leased assets | (21,787) | (21,787) | |
(e) | staff costs | (35,343) | (35,343) | |
(f) administration and corporate costs | (9,812) | (9,812) | ||
1.3 | Dividends received (see note 3) | 0 | 0 | |
1.4 | Interest received | 28 | 28 | |
1.5 | Interest and other costs of finance paid | (8,783) | (8,783) | |
1.6 | Income taxes paid | (735) | (735) | |
1.7 | Government grants and tax incentives | 353 | 353 | |
1.8 | Other (provide details if material) | 0 | 0 | |
1.9 | Net cash from / (used in) operating activities | (12,798) | (12,798) | |
2 Cash flows from investing activities | ||||
2.1 | Payments to acquire or for: | |||
(a) | entities | |||
(b) | businesses | (2,476) | (2,476) | |
(c) | property, plant and equipment | (1,727) | (1,727) | |
(d) | investments | 0 | 0 | |
(e) | intellectual property | 0 | 0 | |
(f) | other non-current assets | 0 | 0 | |
2.2 | Proceeds from disposal of: | 0 | 0 | |
(a) | entities | 0 | 0 | |
(b) | businesses | 0 | 0 | |
(c) | property, plant and equipment | 97 | 97 | |
(d) | investments | 0 | 0 | |
(e) | intellectual property | 0 | 0 | |
(f) | other non-current assets | 0 | 0 | |
2.3 | Cash flows from loans to other entities | 0 | 0 | |
2.4 | Dividends received (see note 3) | 0 | 0 | |
2.5 | Other (provide details if material) | 0 | 0 | |
2.6 | Net cash from / (used in) investing activities | (4,107) | (4,107) | |
3 Cash flows from financing activities | ||||
3.1 | Proceeds from issues of equity securities (excluding convertible debt securities) | 51,118 | 51,118 | |
3.2 | Proceeds from issue of convertible debt securities | 50,000 | 50,000 | |
3.3 | Proceeds from exercise of options | 0 | 0 | |
3.4 | Transaction costs related to issues of equity securities or convertible debt securities | (4,646) | (4,646) | |
3.5 | Proceeds from borrowings | 0 | 0 | |
3.6 | Repayment of borrowings | (72,500) | (72,500) | |
3.7 | Transaction costs related to loans and borrowings | 0 | 0 | |
3.8 | Dividends paid | 0 | 0 | |
3.9 | Other (provide details if material): Principal elements of lease payments | (8,365) | (8,365) | |
3.1 | Net cash from / (used in) financing activities | 15,607 | 15,607 | |
4 Net increase / (decrease) in cash and cash equivalents for the period | ||||
4.1 | Cash and cash equivalents at beginning of period | 64,203 | 64,203 | |
4.2 | Net cash from / (used in) operating activities (item 1.9 above) | (12,798) | (12,798) | |
4.3 | Net cash from / (used in) investing activities (item 2.6 above) | (4,107) | (4,107) | |
4.4 | Net cash from / (used in) financing activities (item 3.10 above) | 15,607 | 15,607 | |
4.5 | Effect of movement in exchange rates on cash held | 65 | 65 | |
4.6 | Cash and cash equivalents at end of period | 62,970 | 62,970 | |
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AMA Group Limited published this content on 29 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 October 2021 22:37:04 UTC.