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AMA GROUP LIMITED — Earnings Release 2008
Aug 27, 2008
64372_rns_2008-08-27_f47df899-0464-4a1e-afdd-1ae95eda3771.pdf
Earnings Release
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Allomak Limited
Pre-release Summary of FY2008 Results
28 August 2008
SUMMARY OF RESULTS
Financial Highlights
Operational Highlights
Sales -> UP116% to $78.3m Above target 30%
Acquisition
– 5 outstanding businesses introduced to the group
EBIT -> UP 105% to $10.0m On target
– Organic Growth excellent growth from all three operating sectors
NPAT -> UP 64% to $6.3m
Group Synergies – significant traction gained on group initiatives
Revenue for 2008 of $78.3m significantly exceeded original forecasts of $60m
SALES PERFORMANCE: 2006 - 2008
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$M
Up 116%
2007 2008
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…similarly, profit performance was outstanding - particularly given the current environment
EBIT PERFORMANCE: 2006 – 2008
$M
Up 105%
2006 2007 2008
GROWTH OUTLOOK
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ALLOMAK
Acquisition Performance Group
Excellence Improvement Synergies
Allomak leverages three pillars of value creation
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Performance Improvement
Acquisition Excellence
Group Synergies
• Some major organic growth opportunities in the current portfolio
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Restricted access to capital may reduce acquisition activity in 2009
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Leverage the “Allomak Advantage”
• Driven largely by extended distribution base or macro economic factors (eg fuel price driving LPG conversions)
• However we expect selective acquisitions of bolt-on accretive businesses
• Strong focus in 2009 on active program to identify and capture growth & cost synergies from the existing businesses
- Still maintain an excellent pipeline of good acquisitions
• Raising the bar on business disciplines & initiatives (sales & marketing, cost saving, working capital etc.)
Allomak Limited
Group Results
FY2008 ACQUISITION ACTIVITY
Completion Date Sector November 2007 Business Services November 2007 Distribution December 2007 Distribution December 2007 Business Services March 2008 Business Services Averaged 1 transaction every 10 weeks
KEY STRATEGIC CONTRIBUTIONS OF NEW BUSINESSES
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Leading prestige smash repair in Victoria
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Authorised repairer for BMW, Lamborghini and other prestige brands
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2 sites – Moorabbin and Hallum
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20 year history – focus on service and quality systems
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Ideal Platform for further consolidation in the Panel industry
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Specialist importer and distributor of Automotive Electrical, Communications, Navigation, parts and accessories
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Very Strong WA distribution
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20 year history – focus on Quality Products and high Service levels
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Opportunity for National expansion and two way Leverage of Distribution networks
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Importer and distributor of Automotive, Marine, and Industrial Electrical, and Cabling parts and accessories
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Qld based national distribution
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Over 10 year history – focus on Quality Products and high Service levels and unique product development
KEY STRATEGIC CONTRIBUTIONS OF NEW BUSINESSES (cont)
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Leading aftermarket LP Gas converter in Australia
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Multiple product development opportunities
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Strong Franchise model providing national expansion footprint
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Exclusive supply agreements for equipment
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Long standing business in prime location
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Significant synergy leverage with existing panel business
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Experienced operational management team
SEGMENT SUMMARY*
| Sales | Sales | Sales | EBIT** | EBIT** | EBIT** | |
|---|---|---|---|---|---|---|
| 2008 | 2007 | % Change | 2008 | 2007 | % Change | |
| Manufacturing | 27,000 | 25,900 | 4.2% | 3,100 | 3,800 | (18%) |
| Distribution | 25,300 | 6,500 | 290% | 3,700 | (425) | N/A |
| Business Services | 26,000 | 3,900 | 600% | 3,200 | 1,525 | 110% |
| Total | 78,300 | 36,250 | 116% | 10,000 | 4,900 | 105% |
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Subject to final audited accounts
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** After allocation of corporate overhead