We'll progress across the economical performance. I'd similar ought hand above ought Steven Becker, just ought report you across the numbers.

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Steven Becker, AMA gang Limited - CFO [5]

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Thanks, Andy, and good morning. I'll stride you across the economical code of the gang at a sheet more detail.

On slip 10, it sets out our key metrics although the half, and Andy's touched above a little of these, however I'll recap above a little highlights.

Overall, the gang had a firm half ought December '18. revenue was up 32% ought $302 million; EBITDA was up 18% ought $24.3 million, and 7% above a normalized base ought $28 million; net use after tax was up 30% ought $9.9 million and, importantly, gearing remainder moderate. And this will farther decrease upon the receipt of the next just incentive payment of $30.9 million. That's expected ought decrease net debt ought EBITDA ought maybe circa 1.4 above its trend levels of approximately 1.7x.

On slip 11, we exhibit at a reconciliation of EBITDA ought normalized EBITDA. We normally compose some adjustments ought attempt and obtain a feel although underlying EBITDA. And these adjustments are largely compatible with foregoing years' adjustments.

A little things ought highlight. This year, we've seen less incurred at greenfield start-up cost. We've had 2 greenfields, however some of their start-up costs consume calm ought jog through. And also, we don't consume the Blackstone cost, which finished final year during well. hence they're out of the normalizations this year.

A mingle of extra ones, and Andy will report a small sheet more approximately some of the benefits that jog across this. We've vertical a Procurement business, and that's at the early stages, however we spent some [money]

(technical difficulty)

and we cry on giant benefits ought jog across that. Also, with iBodyshop and NetSuite, we spent some cash integrating that. And again, they will allowance giant benefits going forward.

In condition of cash flow, that's quit above Slides 12 and 13. if you exhibit at slip 12, our cash conversion evaluate remainder vigorous at 94%, if you exhibit at it above a pre-tax and pre-deferred allowance basis, and that compares similar ought final year, slightly down during of a small sheet of an extra use however overall, healthy cash conversion.

Slide 13 sets out the investment and finance cash flows, and a little things ought highlight. Greenfield expenditure was largely the same during the foregoing corresponding period. Acquisition of existing bargain was up $14.4 million versus approximately $9.5 million above the final half. And the other highlight of this second half is we undertook a placement of $9.5 million ought new shareholders, which was certain although the group.

In condition of the surplus sheet, quit above Page 14. surplus bit is at a firm position. It puts us at good genius ought receive use of future consolidation and acquisition opportunities. And also, just again ought highlight the just incentive payment will grow in, expected at can this year, of approximately $30.9 million, which will farther decrease net debt and grant us extra genius ought receive use of acquisition opportunities.

I'll now just hand uphold ought Andy ought report a small sheet farther approximately the different divisions.

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Andrew Hopkins, AMA gang Limited - CEO and Executive Director [6]

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Okay. Thank you, Steven. hence Vehicle Panel Repairs, during you know, we're mostly a panel department roll-up. We've got 119 sites now across Australia and New Zealand. We are the largest consolidator at Australia. however it's no the intent ought be the largest, it's the intent ought be the best, and that's why we spent a condemn of cash above the IT systems and ought revolutionize the manner that we perform business.

The IT system and complete the charge of that roll-out now is finished. You won't cry on any more of that at this half, however it's been a big disruptor ought the first half.

There's been a small sheet of a edge question at the panel bargain at the first half, and that's mostly down ought one acquisition at New South Wales that hasn't gone too during we hoped. We're complete above that with our operational teams now, and we reckon that's uphold above follow or to be by the goal of this economical year. hence that's mostly the sole reason.

We've got a big salute accident at New South Wales. We've just opened up a pop-up repair center at New South Wales ought exhibit at some of that. A condemn of it is PDR, which is paintless dent removal. hence we won't elect up a condemn of that during we're usual repairs and we haven't got a salute business. Although, I reckon it's a good tactic although the bargain ought exhibit at that at the future. however there is definitely some revenue coming from the salute accident at Sydney at the next half.

The Panel repair business, the sales are up 27.9% at the half. The EBITDA is up 7.4%, however during I said, the edge has [held] uphold a small bit. however we've always said the edge won't be linear. Our guidance has always been among 9% and 11% EBITDA. And I think, with the one acquisition at New South Wales, we've done 119 and 99.9% of them consume gone well, and the one we're just complete above now sorting it out. hence I'm lovely confident with the margin. It isn't a trend, and it will be uphold above follow although the destroy of the economical year.

ACAD, fabulous growth, [Mitch Roberts] has done a large work at that business. We truly similar the bulbar and the accessories business. 6 out of 10 vehicles that are sold at Australia today are four-wheel motivate and [used], hence that's the genius although us ought post extra parts above those. however although engine vehicles are down, sales are down year-on-year 7.4%, hence that's had a small knock-on, however ACAD has managed ought affirm its edge and sales across the downturn at bus sales. hence we're identical confident and identical favourable with the ACAD business.

The Procurement business, during I spoke ought you before, will goal up with 3 -- the tactic although the company now is 3 streams of allowance and the Procurement bargain is complete investments at the moment, during you'll cry on at our normalizations, however we reckon it's an investment worth doing. We're identical bullish approximately the Procurement business. It's a $5 million -- $5 billion global business, and we've got the tactic and the manufacturing knowledge ought receive use of that just going forward. hence we're identical bullish approximately the procurement business. There's no news above the front of that at the moment, however I'm sure that we'll consume some more news at -- at the goal of our economical year.

The ACAD bargain numbers. Their revenues are up 66%, and that's due ought the ASG bargain that's been integrated seamlessly now. hence there's no ASG at our business, it's complete ACAD, and working extremely well. Their EBIT is up ought $6.5 million although the half, which is 53% from what it was at the half before.

So I reckon the tactic although the business, during I said, we'll consume 3 streams of allowance going forward. The panel bargain and the pipeline is during big during ever. There's maybe something similar $400 million worth of revenue I've got above my desk that we're looking at, with $70 million that we're actively trying ought obtain settled at this half. hence the panel bargain is calm during robust, and I'm super confident approximately that during I've ever been. The ACAD bargain is running truly well, and we'll exhibit at opportunities at that sector during we go. And during I said, we're truly bullish approximately the procurement business.

So I'd just similar ought confirm that the guidance although the complete year and the normalized EBITDA is calm at -- within the mountain of $58 million ought $60 million.

So thank you identical much. if there's any questions above the WebCam, we'll hollow it up now ought questions.

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Questions and Answers

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Andrew Hopkins, AMA gang Limited - CEO and Executive Director [1]

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We've got a mingle of questions approximately the salute at Sydney. during I said, we're actively looking at that. The salute accident has been taken care of, mostly by the PDR guys, which is paintless dent removal, and we don't get a paintless dent removal business. however there is usual repairs and we consume got a pop-up place at Sydney now, and we've just staffed it with 20 people, hence we to cry on some revenue coming from that this half.

There's a question approximately the IT rollout too at condition of the cost. I reckon I touched above that. I reckon complete the costs and the development is being done with a front-end system. And ought grant you an idea, we consume something similar 20 IT systems across the group. It was identical disjointed and identical difficult ought control this time final year, and now we've got one front-end IT system and one accounting system exact across the group. hence it's super simple ought control and it's arrange of similar having the bargain now built above concrete. The next stage ought hop deliver is going ought be a condemn easier.

Yes, there's a question above the edge compression at Panel Repairs. Yes, we to absolutely reckon approximately it during 10%. I reckon Ray Malone has mentioned a little period and hence consume I at our highway shows, that it's never going ought be linear, and the 9% ought 11% is where we're aiming for. We consume that one acquisition that we haven't been favourable with, and we're complete above it with our operational teams at the minute and our colour partners, and we will arrange that. There are a little marginal other things, however nothing that's causing a question with the edge and the future, the predict and the outlook. From my point of view, from what I can see, the destroy of the bargain is performing extremely well. hence there's sole one acquisition that we can post that down to.

I've got one question from Warren Jeffries. What was the annualized shock of the first panel expansion, first half of the $70 million? Well, that's what I'm looking at although the second half actually, Warren. hence during I've said, the acquisitions were gentle at the first half. There is always a delay. The Blackstone process finished at June, July, and then by the time we've got the acquisitions team uphold above follow and ready ought go, we've got an absolute maintenance ought progress across at condition of panel acquisitions at the next mingle of years, hence I'm lovely confident approximately that. however the $70 million that I referred ought that we're looking ought determine is at this revenue at the second half.

I've got a question above the leading intelligent process during well. I hold getting lots of questions approximately leading SMART. leading intelligent is a panel department chain, which is owned by Suncorp Insurance. I don't know any more than you guys. I've seen it at the paper. The personal equity guys exhibit ought be identical good at putting their washing at the periodical and talking approximately what they're doing. during far during I'm aware, there's no resolution been made from Suncorp yet. I'm unaware. We're no at conversations with Suncorp approximately any process that started. We used to similar ought be involved at any process that started, and I've made my intentions clean with Suncorp, however they've too made their intentions clean that there's no resolution been made above if they're going ought exit that asset or not. however be destroy assured that if they perform sell leading SMART, then we used to certainly be having a good exhibit at it.

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Steven Becker, AMA gang Limited - CFO [2]

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I've got a question from just approximately abnormal items although the year. We don't truly perform a complete projection although them, however what I can speak is I think, above time, you'll cry on that our abnormal items consume reduced during a percent of EBITDA. And we'll exhibit ought compose those, arrange of, I suppose, less during we progress during a percent of earnings. And a condemn of those things that we've incurred during we've arrange of gone across consolidation and system changes now will begin ought become BAU. hence I reckon you'll cry on that they'll decrease above time.

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Andrew Hopkins, AMA gang Limited - CEO and Executive Director [3]

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Got a question approximately the procurement revenue and how it to be classified. Yes, absolutely separately. It's no at our numbers at the moment. We're identical bullish approximately the procurement sector. We cry on growth occur at it, however there's nothing -- it's never done until it's done. And although we're identical near ought signing or we're at heads of agreement and signing contracts, nothing's been signed yet, hence there's nothing ought interpret at that area. however I'm hoping by the goal of our economical year, hence by June 30, we'll consume some certain news approximately the procurement. hence I wouldn't calculate anything at our numbers although this year, however I'm hoping that they'll be at our numbers although next year.

I've got a question approximately the New South Wales acquisition. It just hasn't performed. They've had the volume, during you can see. The revenue is up. There's a condemn of issues. The trend management team, that while we bought it, are calm at there. hence we protected our surplus bit within AMA, hence the company and the surplus bit are identical healthy protected, however I'm just a sheet disappointed with the results that we were expecting. They've got the cars, they've got the volume, they just don't exhibit ought be producing the margins that we used to like. hence -- however during I've said, we've got 119 stores, the underlying bargain is performing truly well. however that was a big acquisition although us that we did final year. I'll update the just above that during we progress across the year, however I'm lovely confident that we've got the AMA operational team involved at that now and the BASF colour team are involved at it, hence we're lovely confident that those margins will grow uphold towards the goal of this year.

Some commentary approximately the relationship and the might of the relationship with insurers. Well, it's never been stronger. We've got a large relationship with complete insurers, Suncorp, IAG, Allianz, [URI], auto at general, et cetera. There's no -- there's no downward stress above pricing. at fact, the revenue is approximately during imply during we can go. There's a sheet of parts inflation at the moment, however that's being compensated for. hence I can't cry on any likely with the insurers suppressing the edge lower.

That's certainly no the feedback we've had. at fact, there's sole upward stress above pricing now during we progress forward. The issue, during I've said with the edge was down ought one acquisition, certainly no down ought the insurers. It's down ought our get operational issues. however the relationships with the insurers are healthy during ever. And also, our OEM partners. We're currently talking ought Bentley, Porsche. We've opened up a new Porsche repair center, with Mercedes. complete the OEMs are identical anxious ought unite with us now, and we'll cry on -- hopefully cry on exclusive stores with those guys at the next little years. during the vehicle technique gets more and more complicated, and these vehicles are harder and harder ought repair, I reckon it's super significant that we obtain closer ought our OEM partners too during our insurer partners.

There's a good question approximately how perform we reckon approximately the EBITDA margins although the procurement opportunities. It's identical difficult at the minute during we haven't finalized any of the contracts. We'll post some announcements out how you to reckon approximately it during instantly during we know more and during instantly during we know the volume. And obviously, it's a volume-based xerox with the procurement, hence during instantly during we know some more news approximately that, we'll definitely post it out ought assist you with the guidance.

Could ACAD be sold ought liberate up cash although panel? That's a good question. Well, I obtain this question fairly a lot. Look, the ACAD bargain is performing truly well. It's identical profitable. I cry on a condemn of daylight at among ACAD and the panel business. And with that, I mean, there isn't a condemn of alignment. although during I've taken above the chair, I've started ought align the 2 businesses. And Ray Smith-Roberts, who was at the board assembly yesterday, congratulated us above how we've managed ought haul the 2 businesses together. however I calm cry on daylight among ACAD and the panel business, which I'd similar ought fill in, such during parts businesses, and the Procurement bargain and maybe other types of bargain that we can unite those 2 up. hence look, I truly similar the ACAD business, and I truly similar that sector and I can cry on growth there. hence I used to never speak never, that we wouldn't sell it, however there isn't enough above the desk although ACAD. And it used to consume ought be a compelling offer although me ought deem selling it. So, no, short term, certainly no a seller of ACAD.

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Steven Becker, AMA gang Limited - CFO [4]

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A question just approximately comments above paying down debt versus acquisition. I mean, obviously, it's a surplus where we cry on accretive acquisitions, we'll always exhibit ought attempt and receive use of those. Obviously, balancing the leading structure ought compose sure it's proper although the company.

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Andrew Hopkins, AMA gang Limited - CEO and Executive Director [5]

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Another question here is the half is impacted by floods. Yes, absolutely, it's okay. however I reckon it's no secret, everybody's got a TV and seen complete the floods and the devastation at Townsville. We've got 3 big repair shops at Townsville. hence the -- it has been affected by the floods, and it's calm being affected, trying ought obtain parts up ought far North Queensland. however if we were a North Queensland business, it used to compose a big -- a issue impact. however during we're a national business, I reckon we can climate it a small bit. however Townsville floods consume been a problem. The salute at Sydney, initially, was a sheet of a problem. however we're above climax of that now, and the insurers consume gotten in-line with what they're doing with it, and I reckon we will cry on that during a bonus across this half.

Yes. hence there's a question approximately greenfields. I reckon we've always done 4 ought 6 a year, and I reckon we're above although that. There is an occur ought perform more greenfields per year, however they're super complex ought construct and determine in. And it's hence significant ought obtain the management team, and the peculiarity and the process going right, hence it's no -- with a greenfield, it's no a instance of how many you can do. It's approximately how many you can perform correctly and efficiently and properly hence they career truly healthy and the peculiarity and the standard is there straight away.

So maybe while we perform a roadshow, there's a -- the latest one we opened although Suncorp and Eagle Farm. I used to mean it during one of the best body shops ever built, that we've ever done. I reckon Ray and I went there final week and I've exhibit at it and he too described it during one of the best body shops he's ever seen. hence the greenfields are calm a vast complete although us. We truly similar the manufacture while it's finished, and we hold developing it and innovating these new panel shops. hence we will progress during rapid during we can. however I won't be pressured into opening more than approximately 6 a year, during it's just approximately getting the peculiarity and the standards accurate although those stores. hence that's super important. You're sole during good during your worst one, hence we don't desire ought compose any mistakes. And we haven't and we don't intend ought with the greenfields.

But it's calm a vast occur and we truly perform similar the greenfield occur with complete the insurers. And during I've said, no just insurers, with OEMs during well. hence the bargain -- the panel bargain is definitely a specialization business. hence we specialize at rapid repairs. We specialize at heavy repairs. We specialize at Mercedes. We specialize at -- and I reckon that's where we'll affirm our margins going forward. hence we'll categorize each repair shop, however the greenfield is a big segregate of that specialization going forward.

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