Join our daily newsletter At The Bell to receive exclusive market insights
- AMA Group (AMA) is gearing up for a fresh cash injection after placing its shares in a trading halt
- The car repairs business ended FY21 with a reduced cash balance of $64.2 million and $173.29 in net debt
- AMA confirmed last week it is carrying out a capital structure review, after media reports of unease amongst its bankers
- Full details of the upcoming capital raise will be announced before September 10, the last day the trading halt is in effect
- Shares in AMA Group last traded at 42 cents each on September 3
Car repairs business AMA Group (AMA) is gearing up for a fresh cash injection after placing its shares in a trading halt.
The proposed fundraise comes after AMA ended FY21 with a reduced cash balance of $64.2 million and $173.29 in net debt.
It also had $57.7 million in undrawn debt facilities at the end of June 30 and ended the financial year with a statutory net loss after tax of $99 million.
The company reported being impacted by COVID-19 related lockdowns throughout FY21, leading to decreased volumes of car repairs.
AMA confirmed on Friday it was carrying out a capital structure review on the business in the wake of the full-year results, after media reports of unease amongst its bankers.
Specifically, it said it “may undertake capital markets initiatives in order to enhance balance sheet flexibility, diversify funding sources and extend
duration.”
The company also noted its banking syndicate and insurer partners were still supportive of the business.
Full details of today’s proposed capital raise will be announced before September 10, the last day the trading halt is in effect.
Previously shares in AMA Group last traded at 42 cents each on Friday, September 3.
